Managerial Accounting Report: Westpac's Performance and Remuneration

This report provides an analysis of Westpac's financial statements, focusing on performance measures, remuneration practices, and motivational strategies within the organization. It examines both financial and non-financial factors influencing shareholder decisions, drawing insights from Westpac's 2018 annual report. The report discusses the impact of regulatory changes and the Royal Commission inquiry on Westpac's operations and ethical culture. Furthermore, it evaluates the remuneration structure for directors and executives, assessing its role in employee motivation and compliance with regulations. The analysis includes key financial ratios, profitability indicators, and internal controls to gauge the company's financial performance, concluding with recommendations for improvement. This document is available on Desklib, a platform offering a variety of study resources.

Running head: MANAGERIAL ACCOUNTING
Managerial Accounting
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Executive Summary
The assessment considers the business of Westpac which is engaged in banking business in
Australia and also involves analysis of the financial statements of the company for identifying
the performance measurement of the company. The performance measures which are adopted by
the business has big role to play in the overall culture and ethics of the business. The assessment
also shows the role of the management in formulation of the performance measures of the
business and appropriately implementing the same in the organization. Some of the motivational
performance measures which are implemented by the business are related to the remuneration
practices and ethical code which is followed in the business. The remuneration of the board of
directors is appropriately shown in the annual reports of the business for the year 2018. In
addition to this, the assessment also includes analysis of the financial and non-financial factors
which are closely related to the shareholders of the business. In order words, such financial and
on-financial factors affect the decisions which are taken by the shareholders of the company
either directly or indirectly. The assessment would be identifying the financial and non-financial
factors which are present for the business from the annual report of Westpac for the year 2018.

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Table of Contents
Introduction......................................................................................................................................3
Reference.........................................................................................................................................5

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Introduction
The main purpose of this assessment is to analyze the financial statement of Westpac
which is engaged in the business of banking and provides financial services to the customers.
The assessment evaluates the performance measures of the business and those which are
incorporated by the management for the purpose of ensuring that employees and staffs of the
business are motivated for further enhancing the performance of the entire business (Theriou
2015). The assessment goes into discussion relating to the financial and non-financial measure
which is adopted by the business for the purpose of measuring the financial performance of the
business and the same will be done on the basis of the annual report which is formulated by the
management of Westpac.
Westpac is one of the big four banks which provides financial services to the customers
of Australia and is regarded as one of the top banks operating in the country. As per recent
estimate, the bank employs almost around 40000 employees and serves more than 14 million
customers (Westpac.com.au. 2018). The bank has undergone variety of changes due to the
regulations brought in by the government and inquiry which was conducted by Royal
Commission. In addition to this, Westpac has been recognized as the sustainable bank globally
for the fourth time in a year.
The performance measures of the business are identified in the discussion section which
are both financial and non-financial in nature and closely related to the performance of the
business (Kallestrup, Lando and Murgoci 2016). The annual report shows that the year has been
difficult as there has been massive changes and the business had to comply with the regulations
which was brought in fthe financial sectors (Haldane 2013). The management of the business

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had to reorganize the business structure appropriately in order to meet the guideline and
regulations which have been introduced in recent years and which is related to banking sector.
The ethical behavior and the culture of the organization is affected by the new regulations which
are brought about by the royal commission. In addition to this, the assessment also aims to
analyze the remuneration schedule which is included in the annual report of the business. The
remuneration which is provided to the directors and other executives are identified as a source of
motivation for the employees of the organization. The assessment would be identifying whether
the regulations which is related to the remuneration of the directors are followed by the business
or not.
The assessment would also be identifying the financial and non-financial measures from
the annual reports which can measure the financial performance of the business during the years.
The measures for performance can be internal as well as external which is depended on the
criteria which is considered by the business. The financial measures which can be considered by
the business are key financial ratios, profitability of the business and any other indicator which
can show the financial performance of the business. The non-financial indicators would be
including factors such as internal controls and other measures which are related to the
performance of the business. The assessment would be concluding with recommendations as to
how the business can further improve the financial performance of the business.

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Reference
Haldane, A.G., 2013. Rethinking the financial network. In Fragile stabilität–stabile
fragilität (pp. 243-278). Springer VS, Wiesbaden.
Kallestrup, R., Lando, D. and Murgoci, A., 2016. Financial sector linkages and the dynamics of
bank and sovereign credit spreads. Journal of Empirical Finance, 38, pp.374-393.
Theriou, N.G., 2015. Strategic Management Process and the Importance of Structured Formality,
Financial and Non-Financial Information. European Research Studies, 18(2), p.3.
Westpac.com.au. (2018). Westpac - Personal, Business and Corporate Banking. [online]
Available at: https://www.westpac.com.au/ [Accessed 31 Dec. 2018].