Swot Analysis For Westpac

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6. Competitive strategies
In order to gain a competitive advantage, the great potential resources and competences are used internally. 39,174 employees are working for Westpac in 2016 (Haq and Avkiran, 2016). The experienced and talented human resource are retained and they are trying to create a better and more diverse workforce where the talented staff want to join. Physical areas and media advertisements also build reputation and branding recognition. Also, the technological innovation is a main key success to facilitate services, network, and communication with customers. Also, Westpac’s strategies are concentrated on quality, services, convenience, digital and technology solutions, market development and research, increase customer number
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Interest income and expense of Westpac are recognized using the effective interest rate, where effective interest rate is calculated by discounting the expected future cash receipt or payments of the loan, taking into account the commission, legal fee, premium over the expected life.

Non-interest income consists of:
• Fee and commission: facility fee, transaction fee and other non-risk fee income are recognized when the service/ transaction is performed to customer
• Fund management income is recognized over the period of fund management
• Life insurance premiums with a specified duration are recognized as revenue on accrual basis. Premium without specific due date are recognized on cash receipt basis. Deposit for life insurance is not part of the company’s revenue
• Trading income of trading assets, liabilities are recognized when they are revalued (realized and unrealized gains)
• Dividend income of share is recognized when it has right to the dividend

Impairment
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Impairment charge is needed when the recoverable amount of loan and due are less than the book value in statement of financial position.

Trading securities are those which are purchased for resale in short term, for example, government debts or equity instrument. Trading security is initially recorded at fair value and gain/ loss is recognized in income statement as interest income. Financial assets designated at fair value and are subsequently tested for gain or loss, to be recorded as non-interest income in the result statement.

Available-for-sale securities are held at fair value where gain/loss & impairment is charge in other comprehensive income. At the end of accounting period, the company shall assess whether the securities is needed to be impaired. Some of the criteria for available-for-sale securities are financial crisis, change in payment habit, and significant drop in fair value of

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