Commercial Bank Accounting
Executive Summary
Financial institutions vary in many ways from the traditional, non-financial organization. For many people, the inner-workings of financial institutions are complicated and difficult to understand. For accountants, the traditional rules and procedures used in non-financial institutions must be modified and extended when a financial institution is involved. Our focus in this paper is on one specific financial institution, the commercial bank. In this introductory manual, we will discuss the many reasons for the differences in bank accounting in attempt to give you, the accountant, a better understanding of accounting issues in this unique industry.
In preparing this introduction to commercial bank accounting, we researched a number of sources, including an actual bank controller¡¦s manual. Our extensive research of this manual, a banking textbook, and a number of journal articles and websites uncovered many differences between the accounting methods for commercial banks versus those for other institutions. We have compiled our findings into two main sections. First, Section 1 discusses the financial statements of the commercial bank. We have analyzed each section of the balance sheet to discover where the differences lie between the bank and the traditional company. Then, we discuss the income statement in order to find out what transactions cause a bank to earn income or incur an expense. We also briefly touch on the other two financial statements, the statement of cash flows and the statement of stockholder¡¦s equity. Second, in Section 2, we discuss the regulatory agencies and reporting requirements that apply to accounting for commercial banks. We uncover the ...
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In order to analyze Ally, I will be evaluating its balance sheet and performance ratios over the period from June 2006 to June 2013. This will show the progression of the bank throughout the 2008-2009 financial crisis. I will compare Ally’s financial data to the whole US banking industry as a way to analyze the banks risk and performance over that period. Factors such as profitability, credit risk, capital adequacy, liquidity risk, interest rate risk, market risk, ad off balance sheet exposures will all be evaluated.
Globally, banks have been facing big challenges in the last few years and continue to do so. As a result of the financial crisis, the regulators have tightened the minimum capital requirements with the aims to create a more solid and shock-resistant banking system especially for the so called Global Systemically Important Banks (G-SIBs). The Financial Stability Board is expecting to raise the total loss-absorbing capacity
The current norm of one to three years is not enough time to ensure the development of peace and stability. The United States occupied Germany and Japan for ten years and seven years after WWII (Paris,1997,58). Within that time frame they were able to build the foundation for democracy and capitalism. While the situation is different for peacebuilding agencies given that they must rely on the continued cooperation of the local government and that they can not impose peace, they should offer extended support (Paris,1997,58). Peacebuilding operations are often scheduled to be terminated after the first round of free and fair elections; however, problems rarely dissipate after this point. Ideally, peacebuilding initiatives should be extended to after the second round of elections. Another important component that needs to be included in the peacebuilding process is the promotion of social justice and accountability for past human rights abuses (Newman,et Al.,2009,47). This could include forms of transitional justice, such as punitive justice, restorative justice ad distributive
In 1831 Senator William Marcy of New York coined the phrase: “To the victor belong the spoils.” Even though, Marcy was referring to the election of Andrew Jackson and the subsequent upheaval following the inauguration fiasco where nearly ten percent of Federal offices were replaced with cronies of Jackson parallels and epitomizes the African proverb, “Only when lions have historians will hunters cease to be heroes.” Unfortunately, every war fought has a winner and a loser—the winner writes the history books while everything is done to squelch the history and culture of the defeated as the winner compels a new way of life upon the defeated peoples; many times contrary to that of the conquered peoples. Historians are often plagued with the task of unraveling oral histories that have been embellished upon for many centuries should no written history or tales be found.
Some researchers state that terrorism occur only in weak countries. However, the author of the article tried to prove that every medal has its reverse. The point is that terrorism occurred and occurs nowadays even in strong countries. The author argues that the strength or weakness of a country is not an obligatory condition for terrorist groups. However, some scholars suggest that a weak country is the reason for fast development of terrorist groups. On the contrary, the author of the article argues that some terroristic groups are non-state or come from strong state. The main idea of the article is to prove that weak states and state failure are not the main reasons for terrorism, as some scholars used to think.
Your good friend has been murdered. Your innocent friend who shouldn’t have been, was murdered. Now, the trader who helped murder him is preaching to the citizens how he needed to just so he doesn’t seem like the bad guy. In Barbara A. Mow’s Julius Caesar, we see Caesar betrayed by his good friend Brutus and the conspirators. Brutus then attempts to convince the citizens of Rome that it needed to be done, and Caesar’s other good friend Antony attempts the convince them of the opposite. In comparison, both Brutus and Antony have convincing speeches and similarly, they both use ethical and logical appeals to either convince the people of Rome why the killing of Caesar should’ve or shouldn’t have occured, Antony’s speech is able to reach out to
The stereotypical image correlated to the account mirrors that of a public accountant. An individual working as a public accountant can expect to work as an independent third party to a multitude of companies. As this third party it is their duty to oversee financial transactions to ensure that the statements of not only the company, but also its’ supporting companies, correctly correspond and match up to the position, results and cash-flow of the clientele. This general quota outlining a public accountants job description is not the same for a private accountant. The main difference between a public and private accountant is that unlike the public and its handle on a multitude of accounts, a private accountant specializes with a certain company or field. With this specialization, a private accountant tackles setting up a system that records the transactions within the business. The recordation of the transactions is then generated into statem...
The Republicans were losing their political clout. By agreeing to what has become known as the Compromise of 1877, the Republicans effectively abandoned the people they had fought so long to free. This was because this compromise between Democrats and Republicans effectively repealed the constitutional strides, which had been made thus far toward offering the black population of the U.S. equality.3
The Compromise of 1877 was brought on by the disputed election of 1876. The Democrats had clearly won but this was disputed by a few large states. This election was between Democrat Samuel J. Tilden and Republican Rutherford B. Hayes. Congress created a commission to try and resolve this dispute and the commission voted in favor of Hays giving him all of the electoral votes from the disputed states, which in turn gave Hayes the victory. This led to a series of compromises from the Republicans to the Southern Democrats which included: “The appointment of at least one southerner to the Hayes cabinet, control of federal patronage in their areas, generous internal improvements, federal aid for the Texas and Pacific Railroad, and most important, withdrawal of the remaining federal troops from the South” (Brinkley 363). These compromises are what jump started The “New South”. The compromises were supposed to help create a more Republican South but in turn did the exact opposite. The South went in a different direction. The “New South” had a lot of effects on of different subjects. The economy in the south grew tremendously, the politics changed and were predominantly democratic, and the African Americans were losing all of the things they had gained through reconstruction. These changes where exactly what Southern Whites wanted and in some cases it is what the Republicans hoped would happen. The “New South” was a reality by the end of the 19th century and changed the South by growing economically, becoming Democratic politically, and having even worse race relations.
In the play Julius Caesar, written by Shakespeare, two characters, Marc Antony and Brutus, have speeches where they persuade an audience to agree with them. While Marc Antony had a very good speech Brutus did a better job at convincing the people to agree with him. These two speeches were given after the conspirators assassinated Caesar. Brutus was informing the audience why they did it and Marc Antony was trying to turn the audience against Brutus
Antony’s goal was to persuade the crowd of plebeians that the conspirators acted impetuously and Caesar did not need to be killed. He uses many rhetorical devices to strengthen his speech and gain the support of the crowd. From rhetorical questions to the use of pathos, Antony masters the art of persuasion. His speech moves the crowd from believing Brutus’ reasoning for killing Caesar, to understanding that Caesar did not have to die.
Agricultural commodities such as corn, is a type of business that would be most successful as an export business. From an industry point of view, there is little distinction amongst commodities; soybeans from the US are the same as corn from Brazil. Because of product homogeneity, the incentive to form strategic alliances between rival firms and resulting FDI is low. Research by Qui (2006) indicates competing firms are more likely to form strategic alliances as product differentiation increased. Those alliances gravitated towards FDI. When product differentiation...
The word terrorism was first used during the French Revolution from the reign of terror inflicted by the French from 1784-1804 ("International Affairs"). It was used to describe the violent acts perpetrated on the French that inflicted terror on the various peoples and instilled fear within them. However, at the time it had a more positive connotation than the term that instills fear today. During the French Revolution this was because it referred to state-sponsored terrorism in order to show the need of state instead of anarchy, sometimes promoted by other groups (Hoffman 2). Therefore, even though terrorism has taken a new nature, terrorism can refer to official governments or guerrilla groups operating outside national governments ("International Affairs"). In order to encompass terrorism’s various sectors and explain it to the public, in both positive and negative aspects, many analysts have tried to put it into a few words. Terrorism is a method used by tightly of loosely organized groups operation within states or international territories that are systematic in using deliberate acts of violence or threats in order to instill...
Financial statements can provide a wealth of information about a given organization. These statements provide information about the company’s financial position, cash flows, operations, performance and changes in the financial position. This information may be used as part of the decision making process for employees, shareholders, investors and competitors. Based upon these financial statements, key ratios are used to provide additional insight as to the financial health of a given company. Being familiar with financial statements can increase financial literacy. For this discussion, Citigroup’s (Citi) financial statements will be reviewed.
IOs and states play a critical role in maintaining world peace and security. The United Nations (UN), in particular, is the centerpiece of global governance with respect to the maintenance of world peace. The UN provides general guidelines for all the states on how to solve potential conflicts and maintain international o...