The document discusses the significance of corporate accounting within businesses, emphasizing its role in evaluating financial positions. It analyzes the financial performance of Westpac Bank and National Australia Bank, detailing various income sources and funding strategies while highlighting important accounting standards like AASB 137. Additionally, it addresses the need for accurate financial measurement and reporting to manage the banks' financial status effectively.

1. CORPORATE ACCOUNTING
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2. INTRODUCTION
Corporate accounting plays crucial role in the field of the business evaluating financial
position of the organization in an effective manner. There is an important role of
accounting in running the business because it helps in ensuring the statutory
compliance, tracking the income and expenditures, providing the management and
industry and the investors with the quantitative information of finance which can be
useful in making decisions regarding business. Corporate accounting is a special
branch of accounting which deals with preparing the final accounts of the company,
analysing the financial results of the company and some specific events like
amalgamation and absorption. Here in the assignment two banking industry that is
the Westpac bank and the National Australian Bank (NAB) has been chosen and
there is description of their source of income and annual reports has been analysed.

3. IDENTIFICATION OF THE DIFFERENT TYPES
OF SOURCES OF FUNDS USED BY THE
SELECTED COMPANIES
• Income of total interest: This consist of the value of calculations with the
use of method of effective interest which in the year 2018 was $m32, 571
and in 2019 was $m33, 222. There had been a little increase in the values
compared to the last year.
• Net fee income: The net fee income calculated in the year 2018 was
$m2424 which decreased in the year 2019 to $m1655. The decrement is
calculated to be approximately $m769 (westpac.com.au, 2018).
• Net wealth management and income insurance: The value of net wealth
management has been calculated to be decreased compared to last year.
In the year 2018 the value was $m2061 which decreased to $m1029 in the
year 2019.
• Trading income: Trading income calculated in the year 2018 was $m945
which decreased to $m929 in the year 2019. There was a slight decrement
compared to last year.
• Other income: This also shows the value of last year which was recorded
to be $m72 and it be increased to $m129. The other income includes the
different rated securities and fees charged by the banks (westpac.com.au,
2019).

4. EXAMINING THE EVALUATION OF THE
SOURCES OF THE VARIOUS FUNDS
NAB
• NAB showed a paid up share capital of $m35,
976 in the year 2019 and $m32276 in the
year 2018. There is also a contribution of
some of the other equities like securities of
national income and preferred trusted
securities whose balances stood to be
$m1945 in both the years and after the
addition of the values it became $m37921 in
the year 2019 and $m34221 in the year 2018
Thus the remaining equity calculated were
$m45239 for 2018 and $m42670 for 2017.
• The balance of 2019 also showed a
comprehensive decrease. In the balances of
the year of 2018 and 2017 there is addition of
tier I capital of $m9144 in the year 2018 and
$m8505 in the year 2017 (westpac.com.au,
2019). The balance of 2019 has an addition
of the balance of movements of the other
equity movements and with its help there is
an increase in the balance of equity of the
company.

5. IDENTIFICATION OF THE PERCENTAGE OF THE
FUND GENERATED INTERNALLY AND EXTERNALLY
• The internal process of generation of funds are the selling
of stock, fixed assets, retained earnings and debt
collection whereas process of collection of found externally
were financial Institutions, bank loans, and debentures
(Kahn and Baum, 2020, p.14).
• Through the internal process the funds generated in the
Westpac were$m14476 and the total funds generated
were $m611610. Therefore in the form of percentage =
14476/611610*100=2.37%.
• Whereas the funds of the National Bank of Australia
generated a fund of $m54811 and in total it was
$m869166. Therefore in the form of percentage it was
54811/869166*100= 6.30%.

6. EXPLANATION OF THE MERITS AND
DEMERITS OF THE DIFFERENT TYPES OF
SOURCES FUNDS USED BY THESE
COMPANIES
• Equity debts:
It utilizes a variety of, source of finance which are
initially broken that has been debt and equity
(Mookdee and Bellamy, 2017, p.65). Debt gives
a meaning that is borrowing money towards the
repaid and with the addition of interests whereas
equity means the involving of money raised by
selling the interests of the company. On the
positives usage of debt equity there are no
attachment of any accrued interests or attached
string. The Personal method of finance and is the
fastest and easiest ways of securing funds.
• Funding from investors and Banks:
Capital Venture of the firms is also a wealthy
individuals. These are also another source of
starting a business and can also expand the
business with a concern of gouging. These types
of source sales have an advantage of fast
accessing of funds which might in the future can
lead to the loan or gift .

7. IDENTIFICATION OF THE INTEREST BEARING
LIABILITIES OF WHICH INTERESTS ARE NOT
BEARING
• Tax Liabilities: In the year 2017 the balance sheet of
National Australian bank showed a balance of $m71
whereas the balance of the year 2018 and 2019 are 0.
• Other liabilities: Other liabilities of the year 2017 was
$m6942 and the value of the year2018 and 2019are
$m7108 and $m8582 (capital.nab.com.au, 2018).
• Similarly, according to the balance sheet of Westpac
the different liabilities are
• Derivative Financial instruments: The derivative
financial instruments showed a balance of $m 29096 in
2019,$m24407 in 2018 and $m25375 in 2017
• Debt issues: The debt issue recorded a balance of
$m181457 in 2019, $m172596 in 2018, $m168356 in
2017 (westpac.com.au, 2019).
• Fair financial liabilities through income statements:
The value recorded in the year 2019 was $m19628, in
2018it was $m2040 and 2017 it recorded to be
$m2345.

8. CRITICAL EXAMINATION OF THE PROVISIONS
UNDER AASB 137 ‘PROVISIONS, CONTINGENT
LIABILITIES, AND CONTINGENT ASSETS
• Provision: It is an amount of probable balance that
are set aside but uncertainty and the obligations that
are economical to the enterprise . The main purpose of
provisioning is to make the balance of the current year
accurate as there can be a cost which could be
accounted to some extent.
• Contingent liabilities: It is the potential ability which
shows the occurrence of the outcome to some extent.
Contingent liability is recorded in the records of
accounting for its likely contingency.
• Contingent Assets: It is that possible assets whose
availability may arise with a gain in the future events
and this are not under the control of the entity.
Accounting to the standards of accounting business
does not recognize the contingent assets even it is
probable.
In this context, it is possible to understand that the
provisions of the AASB 137 need to be followed by the
banks in the country to manage their financial position
in the latent marketplace.

9. RECOGNITION OF MULTIPLE CATEGORIES OF
ASSETS

10. CRITICAL EXAMINATION OF THE
MEASUREMENT
The National Australia Bank
• This organization mainly focuses on the historical cost in order to measure
the recorded organizational assets.
• However, certain assets of the company are measured with the help of fair
value.
• By considering the fair value of the bank, it is feasible to determine the
financial performance in the marketplace (Kanagaretnam et al. 2017, p. 37).
Westpac Banking Corporation
• On the other hand, it has been detected from the study of Srivastav and
Hagendorff (2016, p. 334) that fair value is one of the essential aspects of
the company to analyze the exact financial condition of the organization.
• It is likely to describe that Westpac Banking Corporation uses the fair value
for measuring recorded assets of the company in an ethical manner.
• The observable along with the unobservable financial information is used
for determining the financial position of the company in the potential
marketplace of a country like Australia.

11. CONCLUSION
It can be concluded that corporate accounting is significant in order to
understand the financial condition of the companies in the potential
marketplace. It has been identified that AASB provisions need to be
considered by the organization like the National Australia Bank and
Westpac Banking Corporation. In addition to that, it has been detected that
there are several assets of the organization that can be recognized for
understanding the overall financial condition of the company like the
Westpac Banking Corporation as well as National Australia Bank. In this
context, sources of the company’s funds are illustrated in a well manner. As
for this reason, it is possible to consider the accounting situation of the
banks to manage financial position in the potential marketplace. Therefore,
assets of the organization need to be recorded on the basis of the
measurement basis in an effective method.

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