Course Hero Logo

B fair value under us gaap and fair value or

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 117 - 124 out of 148 pages.

B. Fair value under US GAAP and fair value or amortized costunder IFRS.C. Fair value under IFRS and fair value or amortized cost underUS GAAP.Solution:AEquity securities are carried on the balance sheet at fair value(and unrealized gains are shown in the income statement) undercurrent U.S. GAAP standards. Under IFRS, equity is also carriedat fair value on the balance sheet, but unrealized gains can be inOCI (fair value through OCI classification) or in the incomestatement (fair value through profit or loss classification).
成才不必昂贵,融跃助您圆梦Analyzing a BankØLiquidity positionThe Liquidity Coverage Ratio (LCR)The Net Stable Funding Ratio (NSFR)Concentration of funding and maturity mismatchØSensitivity to market risküsecurity pricesüCurrency valuesüinterest ratesReading 16 Analysis of Financial Institutions
成才不必昂贵,融跃助您圆梦Analyzing a BankReading 16 Analysis of Financial InstitutionsBased on the information below, which bank has thehighest liquidity risk in a stress scenario?A. Beta.B. Delta.C. CharlieSolution:C Liquidity risk in a stress scenario is measuredby LCR. Charlie has the lowest LCR and hence the highestliquidity risk.
成才不必昂贵,融跃助您圆梦Other Factors Relevant to Analysis of a BankØBanking-Specific Analytical Considerations Not Addressed byCAMELSüGovernment support.üGovernment OwnershipüBank MissionüCorporate cultureDiversity of a bank's assetsAccounting restatementsManagement compensationSpeed with which a bank adjusts its loan loss provisions relative toactual loss behavior.ØGeneral factors that are relevant to analysis of any company (not justbanks)üCompetitive environmentüOff-balance-sheet itemsVIEleasecontingent liability,Benefitplans,assets under managementSegment informationCurrency exposureReading 16 Analysis of Financial Institutions
成才不必昂贵,融跃助您圆梦Other Factors Relevant to Analysis of a BankReading 16 Analysis of Financial InstitutionsGovernment ownership of a significant stake in a bank ismost likely to indicate that:A. there is a high likelihood of government support in theevent of failure.B. required liquidity ratios are lower than for privately ownedbanks.C. the ratio of Common Equity Tier 1 to risk-weighted assetsis high.Solution:A Government ownership of part or all of a bank is anindication of implied government backing of the bank shouldthe banks capital prove inadequate to absorb losses.
成才不必昂贵,融跃助您圆梦Analyzing an Insurance CompanyØProperty and Casualty Insurance CompaniesØProfitabilityüPremium income is usually the highest source of income for aP&C insurerüReinsure some risks to diversify their risksüProperty insurance covers specific assets against loss due toinsured eventsüCasualty insurance (also called liability insurance) protectsagainst a legal liability due to the occurrence of a covered eventüMultiple peril policyReading 16 Analysis of Financial Institutions
成才不必昂贵,融跃助您圆梦Analyzing an Insurance CompanyØ

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 148 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
Lentz
Tags
Balance Sheet, Generally Accepted Accounting Principles, Intercorporate Investments

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture