Analysis of Bank Financial Statements

Case Study

• Case studies based on actual bank financial statements

Exercises

• Targeted exercises to demonstrate the impact of accounting choice on key financial indicators.

Other Extras

• Certificate of attendance

Level: Intermediate


Synopsis:
The analysis of bank financial statements is often considered a very specialised skill, and yet in these turbulent times for the financial sector it is now in high demand as a range of stakeholders try to understand their risk exposure. In reality the key to successful analysis lies in correct interpretation of the terminology used plus an understanding of a modest number of core accounting techniques used to capture financial transactions.This course provides you with these skills.


At the end of the course participants will be able to: Understand the key disclosures given by financial institutions within their published financial statements . Understand the impact of differing accounting policies on the recognition and measurement of assets and liabilities within bank financial statements .


Prerequisites:
A basic grounding in current account practice and the presentation of published financial information.


Suitable For:
Anyone who needs to understand the key features of bank financial statements and the impact of different accounting policies thereon.


The impact of globalisation of accounting practice on bank financial statements
A route map to the constituent parts of bank financial statements and their role in understanding financial position and performance

• Highlighting points of interest in the statement of financial position and income statement based on the financial statements of a leading financial institution

Key accounting policies

• Financial instruments
• Classification of debt and equity
• Recognition and measurement of financial assets (FVTPL, available-for-sale, loans and receivables, held to maturity)
• Recognition of financial liabilities (FVTPL, other liabilities)
• Embedded derivatives
• Hedge accounting (fair value hedges, cash flow hedges, net investment hedges)
• Provisioning - when is provisioning permitted?

Key disclosures

• Risk
• Sensitivity analysis

Topical issues

• The fair value debate