administrative expenses, being treated as period costs.
ABSORPTION VARIANCE is the variance from budgeted absorption costing of manufactured product. See also ABSORPTION COSTING.
ACAT (Accreditation Council for Accountancy and Taxation) is a national organization established in 1973 as a non-profit independent testing, accrediting and monitoring organization. The Council seeks to identify professionals in independent practice who specialize in providing financial, accounting and taxation services to individuals and small to mid-size businesses.
(BQ) Extra practice activities, informed by the Cambridge Learner Corpus, a bank of real candidates' exam papers, focus on areas where students typically need the most help. This 'without answers' edition is ideal for class use. Invite you to refer to part 2 books.
The Uniform Rules for Bank-to-Bank
Reimbursements under Documentary Credits
(“Rules”), ICC Publication No. 525, shall apply
to all Bank-to-Bank Reimbursements where
they are incorporated into the text of the
Reimbursement Authorisation. They are
binding on all parties thereto, unless otherwise
expressly stipulated in the Reimbursement
Authorisation. The Issuing Bank is responsible
for indicating in the Documentary Credit
(“Credit”) that Reimbursement Claims are
subject to these Rules.
The OECD is a unique forum where the governments of 30 democracies work together to
address the economic, social and environmental challenges of globalisation. The OECD is also at
the forefront of efforts to understand and to help governments respond to new developments and
concerns, such as corporate governance, the information economy and the challenges of an
ageing population. The Organisation provides a setting where governments can compare policy
experiences, seek answers to common problems, identify good practice and work to co-ordinate
domestic and international policies....
Thomas Ahrens Ph.D., is a Senior Lecturer in Accounting at the London School of
Economics where he has been working since 1996. His research is mostly qualitative.
It is broadly concerned with accounting and organisational process. Thomas has
compared management accounting practices in contemporary British and German firms
and studied the uses of performance measurement systems in a large U.K. restaurant
chain. He has also written on comparative and case study research in accounting.
Thomas’ latest research project is investigating performance measurement in British and
Although FHLBanks can use published securities ratings to help make investment decisions,
they should also consider other sources of financial information. Exclusive reliance on ratings
can be an unsafe and unsound banking practice because credit ratings may lag actual changes in
credit quality. There have been a number of instances where companies maintained investment
grade ratings until just before they defaulted.
To manage investment risks prudently, FHLBanks should supplement external ratings with
internal credit analysis.
Such central queues are called ‘liquidity-saving mechanisms’ (LSMs). There are a number of
studies on plain RTGS systems, but only a few on RTGS systems augmented with LSMs. Our
work contributes to this line of research.
We first model a benchmark system, ie a plain RTGS system where each bank decides: (i) the
amount of liquidity to use; (ii) which payments to delay in an internal queue (payments are made
as banks randomly receive payment orders, which need be executed with different ‘urgency’).
In the current crisis, the Keynesian response of stimulating aggregate demand through
easy money and loose fiscal policy is correct to a point. But flooding the system with excess
liquidity that drives short-term interest rates to near zero has been a serious mistake. By the end
of 2008, the interest rates on federal funds and short-term Treasury Bills were virtually zero—
where they remain today (figure 1). In this liquidity trap, the interbank market remains almost
paralyzed so that further Fed injections of liquidity simply led to a buildup of excess reserves in
These are just some of the ways that a village bank is different from an ordinary
savings and credit group. Village bank members learn how to keep accurate accounts,
just like a real bank. They learn how to keep their bank growing and active, how to
handle money safely, and how to avoid corruption.
But the village bank is not just a place for carrying out financial transactions. It is also
a place where women learn to read and write, where they discuss new ideas and
practice management skills, where they find support and encouragement for their
In the medium to longer term, attempts to improve access to service using both
public and private provision are appropriate, depending on country and sector-specific
conditions. As far as private service provision is concerned, it has a continued role to
play in the social sectors. Many countries in both the developed and developing world
routinely make use of private provision, particularly for health services, where private
practice and private hospitals are widespread in addition to public providers.
It also contributes to increase confidence in the protection scheme and in the banking industry. The
appropriate dimension of the fund level depends on the amount and the types of insured deposits.
Obviously, all countries where a fund has been raised face the important problem of managing it in
such a way to balance the trade off between the objective to minimize ex-post reintegration
following future payouts (that is, maximizing its expected return) and the objective to count on a
safe, quick and easy to use amount of funds for immediate needs.
In practice, a number of other factors are often critical in determining how a parent bank would respond to the
realization of such risks independent of the chosen legal form of incorporation. Where the parent’s exposures to
the affiliate (either through non-equity funding or revenues) render the host country operations of systemic importance
to the health of the parent, extension of capital and liquidity support is equally common to branches and subsidiaries,
as not doing so could compromise the survival of the group.