Top-Down Stress Testing: The Key Results by Allan Kearns1 ABSTRACT The CBFSAI’s overall assessment of the resilience of the banking sector to adverse shocks relies on both an analysis of the current health of the sector as well as stress testing the system. A stress test is generally an investigation whereby a bank’s or group of banks’ current financial health is stressed by adverse shocks and the impact of these shocks on the institutions’ financial position is quantified. This paper outlines
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accounting principles GAAP 4. What is the accounting equation? Assets= liability+ stock holders equity 5. What are assets‚ liabilities and owners’ equity? Give examples. Assets- are economic resources used by a business to produce revenue. Liabilities- obligations for a business to religious assets‚ provide services or accept obligation. Stock holders equity- represents the portion of assets that is owned by stockholders Assets= land + cash Liabilities- NA Stock holders equity- common
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Sheet & the Income Statement • Identify the components of financial statements • Describe the relationship between the balance sheet and the income statement • Understand the implications of the decision to record expenditure as an asset or as an expense • Understand the differences between cash profit and accrual profit Required Reading Trotman‚ Gibbins & Carson Chapter 2 AASB: Framework for Presentation of Financial Statements (downloadable from your course website or
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Introduction A balance sheet also known as the statement of financial position tells about the assets‚ liabilities and equity of a business at a specific point of time. equity of a business at a specific point of time It is a snapshot of a business. A balance sheet is an extended form of the accounting equation. An accounting equation is: Assets Liabilities + Equity Assets = Liabilities + Equity Assets are the resources controlled by a business‚ equity is the obligation of the company to its owners
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PART 1 - Company Information Briefly provide answers to the following question for your assigned company. 1. Provide a brief overview of the company and its mission. PepsiCo is a food and beverage company on a global scale with various bands‚ which aims at improve quality and deliver sustainable development with a healthier future for human. There are six principles which are PepsiCo’s tenets: care for customers‚ consumers and the world we live in; sell only the products we can be proud
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of its nonpharmaceutical businesses‚ and it has come to be seen as the partner of choice for licensing deals with other pharmaceutical and biotechnology company. Statement of Problem: Comparing to Company B‚ the major strength of Company A is its assets management to generating sales or revenue. Its weakness is the ability in controlling its costs to improve its Gross Profit. This might be because Company A has started to invest in nonpharmaceutical businesses which has caused lower gross margin
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year’s performance analysis. Evaluation of Efficiency and Effectiveness At the end of 2011‚ The City of Troy had $330.4 million invested in a broad range of capital assets including land. Building‚ police and fire equipment‚ water and sewer lines‚ roads‚ sidewalks‚ and other infrastructure‚ net of debt. The increase in capital assets during the year was attributing to the excess of additional in streets‚ drains and water/sewer systems over the recognition of depreciation. The City of Tory’s debt
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transaction cost services: similar to economies of scale in information production costs‚ a FI’s size can result in economies of scale in transaction costs * maturity intermediation: FIs can better bear the risk of mismatching the maturities of their assets and liabilities * transmission of monetary supply: depository institutions are the conduit through which monetary policy actions by the country’s central bank impact the rest of the financial system and the economy * credit allocation: FIs
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SYNTHESIS IFRS FOR SMEs (International Financial Reporting Standard for Small and Medium-sized Entities) INTRODUCTION 1.1 What is the objective of PFRS for SMEs? The objective of PFRS for SME is to develop a set of high quality‚ understandable and enforceable standards for SMEs. Which includes proper accounting practices for the preparation and presentation of financial statements that creates a common understanding between preparers and users of financial statements. PFRS for SME are
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Assignment 1 Executive Summary The purpose of this report is to evaluate the performance of both Hong Leong Bank and its peer bank RHB Bank for the financial year ended in 2010. The DuPont model is used to provide the information on the bank’s liquidity‚ profitability‚ efficiency and leverage status that allows financial analyst to evaluate on the performance of the bank as a result of the changes of these factors. A trend comparison for year 2010‚ 2009 and 2008 is conducted and evaluated
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