Non controlling interest in the financial results of the company - Westpac
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ANSWERS Ans 5 Non controlling interest is presented both in the statement of the profit and loss account and the balance sheet. It represents that part of the ownership of the subsidiary company which is not owned and controlled by the holding or the parent company. It means that part of the stake of the subsidiary company which is owned by the investors outside to company. In the annual report of the company – Westpac for the year ending 2018, the profit attributable to the non controlling interest is $4 million and non controlling interest share equity is $64573 million. Controlling interest which receives the allocation of both pre acquisition and post acquisition amounts of the equity recorded in the books is known as the direct interest and which receives only the post acquisition amount is known as the indirect interest (Welc, 2017). In the annual report of the company no such bifurcation has been given.
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Ans 6 No, there has been NIL goodwill recognized on acquisition during the year ending 2018. Also there has been NIL gain on bargain purchase. In the financial statements of the company, it is recognized under the head intangible assets. In the annual report of the company, the intangible assets have been detailed in the note number 26 of the financial statements. Goodwill represents the amount which is paid in excess of the amount paid for the purchase or the acquisition of any business. Goodwill is tested for the impairment at each regular interval. Impairment of $105 million has been charged is the statement of profit and loss (Westpac, 2018). REFERENCES Westpac,(2018),“Annualreport,2018),availableonhttps://www.westpac.com.au/about- westpac/investor-centre/financial-information/annual-reports/ accessed on 11-01-2019. Welc J, (2017), “Impact of Non Controlling Interest”, American Journal of Business and Management, Vol 5, pp 52-56.