ACC 303: Analysis of Non-Controlling Interest & Goodwill - Westpac

This assignment provides an analysis of Westpac's 2018 annual report, focusing on non-controlling interest and goodwill. It explains how non-controlling interest is presented in the profit and loss account and balance sheet, representing the portion of a subsidiary not owned by the parent company. The analysis also indicates that there was no goodwill recognized on acquisition during the year, with impairment charges detailed in the financial statements. The report references Westpac's 2018 annual report and relevant academic literature to support its findings, providing a clear overview of these financial concepts within the context of Westpac's performance.

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.

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), “Annual report, 2018), available on https://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.