Company: WEBNF
Filing Date: 2025-11-04
Form Type: 20-F
Source: 0001104659-25-105894
Chunk: 111

Company: WESTPAC BANKING CORP
Filing Date: 2025-11-04
Form: 20-F
Item: Item 14
Chunk 111
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 the recoverable amount of each CGU with the carrying amount. For assets other than goodwill management also assess whether there is any indication that an impairment loss recognised in prior periods may no longer exist or may have decreased. If any such indication exists, the recoverable amount of the asset is estimated. The primary test for recoverable amount is determined based on value-in-use which refers to the present value of expected cash flows under its current use. Fair value less costs to sell is also considered for those CGUs where value-in-use is lower than carrying value. In the current year, this was not required to be considered.
Significant assumptions used in recoverable amount calculationsThe assumptions made for the impairment testing of indefinite life of intangibles for each relevant significant CGU are provided in the following table and are based on past experience and management’s expectations for the future. In the current year and given the present economic environment, Westpac has reassessed these assumptions and revised them where necessary in order to provide a reasonable estimate of the value-in-use of the CGUs and Group.
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       ​           ​           ​              ​              ​           ​         ​              ​              ​      
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​                  ​    Discount rate                                         Cash flows                                
​                  ​    Post-tax rate/Pre-tax rate                       ​    Forecast period/terminal growth rate      
​                  2025                    2024                          2025                2024                       
Australian CGUsa        9% / 11.8%-12.8%   ​          9% / 11.7%-11.9%   ​    5 years / 2%   ​              5 years / 2%
New Zealand             9% / 11.4%         ​          9% / 11.4%-11.7%   ​    5 years / 2%   ​              5 years / 2%
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a.   Australian CGUs comprise Consumer and the CGUs within Business &amp; Wealth.
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Westpac discounts the projected cash flows by its adjusted pre-tax equity rate. 
The cashflows used are based on approved forecasts. These forecasts utilise information about current and future economic conditions, observable historical information and management expectations of future business performance. The terminal growth rate represents the growth rate applied to extrapolate cash flows beyond the forecast period and reflects the lower end of the RBA’s target long-term inflation rate band. For all CGUs tested, the recoverability of goodwill is not reliant on any one particular