Banks have two major functions - deposit creation and lending functions. Banks accept deposits from the savers or the surplus units of the economy. On the other side, they lend money to those who are in need of funds either for investment, consumption, or precautionary purposes. Money deposited by clients is treated as liabilities of banks while money that is used by banks in their lending functions are considered as assets.
To be able to survive and to stay in the market continuously, banks should be able to convince people to entrust their money to them by making deposits. However, it is the duty of the banks to safeguard whatever was entrusted in them, utilize or invest them in a way that amounts are available when needed by the depositors. ...
The expert discusses marking all assets and liabilities to the markets.
On Your Mark: summarize business strategy, assess risk factors, analyze financials
On Your Mark is preparing to release its first Annual Stockholder Report since the company's recent initial public offering (IPO). The accounting department has already prepared and provided the financial statements and ratios (see below) for the most recent year. Now all the division managers are meeting to help create the written analysis portions for the annual report keeping in mind all the stakeholders who will be reading this information. ( i.e.,shareholders, regulators, investors, security analysts, credit rating agencies, etc.) Using what you know about On Your Mark from the scenario above, the financial documents, and details from your previous tasks, create On Your Mark's first Annual Stockholder Report for its' stakeholders. Provide as much detailed analysis as possible to your shareholders for each of the following areas, keeping in mind how the users of this information are likely to use it:
Summarize the nature of the firm's business and its business strategy
Assess the internal and external risk factors for the firm
Provide an analysis of the financial condition for the firm
Evaluate the firm's credit worthiness
Discuss the competitive position of the firm
Summarize the financial and accounting control procedures in place to ensure compliance with applicable regulatory agencies
Use the attached spreadsheat;View Full Posting Details