Content: Financial reporting and the regulatory framework, Statement of profit or loss and other comprehensive income, Statement of financial position, Statements of cash flow, Ratio analysis and interpretation of financial statements, Consolidated financial statements, Equity accounting, Accounting for foreign currency.
National Bank of Ethiopia. In 2004 the National Bank of Ethiopia
created FCD accounts specifically targeting members of the Ethiopian
diaspora to invest domestically. National Bank of Ethiopia Directive
No. FXD/31/2006 created a foreign currency account that nonresident
Ethiopians and nonresident foreign nationals of Ethiopian origin (and
their respective businesses) could open.
Chapter 9 - Foreign currency transactions and hedging foreign exchange risk. This chapter covers accounting issues related to foreign currency transactions and foreign currency hedging activities. To provide background for subsequent discussions of the accounting issues, the chapter begins by describing foreign exchange markets. The chapter then discusses accounting for import and export transactions, followed by coverage of various hedging techniques.
Chapter 10 - Translation of foreign currency financial statements. In this chapter, these two issues are examined first from a conceptual perspective and second by the manner in which the FASB in the United States has resolved these issues. The chapter concludes with a discussion of IFRS on this topic.
Chapter 15 - Global business and accounting. Learning objectives of this chapter include: Define four mechanisms companies use to globalize their business activities; identify how global environmental forces - (a) political and legal systems, (b) economic systems, (c) culture, and (d) technology and infrastructure - affect a company's ability to compete globally; demonstrate how to convert an amount of money from one currency to another;...
This version includes amendments resulting from IFRSs issued up to 31 December 2008. IAS 21 The Effects of Changes in Foreign Exchange Rates was issued by the International Accounting Standards Committee in December 1993. It replaced IAS 21 Accounting for the Effects of Changes in Foreign Exchange Rates (issued in July 1983).
The second edition of the New CFO Financial Leadership Manual is designed to give the
Chief Financial Officer (CFO) a complete overview of his or her place in the corporation,
and to provide strategies for how to handle strategic decisions related to a variety of
financial, tax, and information technology issues. Some of the questions that Chapters 1
through 4 answer include:
What should I do during my first days on the job?
What are my specific responsibilities?
How do I reduce my foreign currency exposure?
How do I increase the company’s return on assets?...
Forex – What is it? The international currency market Forex is a special kind of the world
financial market. Trader’s purpose on the Forex to get profit as the result of foreign currencies
purchase and sale. The exchange rates of all currencies being in the market turnover are
permanently changing under the action of the demand and supply alteration. The latter is a strong
subject to the influence of any important for the human society event in the sphere of economy,
politics and nature.
The Asian financial crisis has generated a lot of research, analysis and debate. The exact causes of the crisis are not firmly established, although various hypotheses have been offered. This paper presents one view of the genesis of the East Asian crisis. Several explanations are examined: managed exchange rates, over and undervalued currencies, crony capitalism, asset bubbles, Japanese devaluation, or “too much” capital account liberalization. A large part of the analysis centers around the proposition that the regime of managed exchange rates was at the core of the problem.
Finance has become one of the most important and popular subjects in
management school today. This subject has progressed tremendously in
the last forty years, integrating models and ideas from other areas such as
physics, statistics, and accounting. The financial markets have also rap-
idly expanded and changed extensively with improved technology and the
ever changing regulatory and social environment.
This is a voluntary code which sets standards of good
banking practice for financial institutions to follow when
they are dealing with personal customers in the United
Kingdom. It provides valuable protection for you and
explains how financial institutions are expected to deal
with you day-to-day and in times of financial difficulty.
Many investors are perfectly satisfied with the more traditional investing
opportunities: They build solid portfolios containing individual
stocks and bonds, mutual and exchange-traded funds, and so forth, and are
generally content to let investment counselors manage their accounts. Other
investors, however, prefer to take a more active role: Perhaps they want to
manage their accounts themselves or broaden their investment horizons
(and increase their potential returns) by delving into more volatile markets...
438 Planning and Forecasting
A Foreign Currency Hedge Suppose an American electronics manufacturer has just delivered a large shipment of finished products to a customer in France. The French buyer has agreed to pay 1 million French francs in exactly 30 days. The manufacturer is worried that the French franc may be devalued relative to the American dollar during that interval. If the franc is devalued, the dollar value of the promised payment will fall and the American manufacturer will suffer losses.
FINANCIAL MANAGEMENT OF RISKS.
Steven P. Feinstein.
For better or worse, the business environment is fraught with risks. Uncertainty is a fact of life. Profits are never certain, input and output prices change, competitors emerge and disappear, customers’ tastes constantly evolve, technological progress creates instability, interest rates and foreign-currency values and asset prices f luctuate. Nonetheless, managers must continue to make decisions. Businesses must cope with risk in order to operate.
The term model refers to a quantitative method, system, or approach that applies statistical, economic, financial, or mathematical theories, techniques, and assumptions to process input data into quantitative estimates. Good definition? Let’s read more. Today we will start from something very important: Some guidance for model risk management Board of Governors of the Federal Reserve System Office of the Comptroller of the Currency SUPERVISORY GUIDANCE ON MODEL RISK MANAGEMENT Banks rely heavily on quantitative analysis and models in most aspects of financial decision making.
For accounts with managed rates, we can make rate changes immediately if the change is of benefit to you.
For accounts with managed rates where the account is a fixed term deposit or denominated in US dollars or another non
European Economic Area (EEA) currency, we will personally notify you at least 30 days before making a change to the rate
which is not favourable to you.
For accounts with managed rates where the account is denominated in sterling, euros or another EEA currency or is not
a fixed term deposit, we will personally notify you at least 2 months before...
Financial sector reforms and the adoption of a more predictable currency system spurred a recovery of the financial sector in 2009. Total deposits in the banking system rose from US$500 million in 2009 to some US$2.5 billion by December 2010. Important vulnerabilities remain6. The Banking sector is highly illiquid, with the bulk of bank lending being short term (90 days or less) with longer-term loans virtually nonexistent. Moreover, the intermediation spread is extremely high with prohibitive lending rates of as high as 30 percent and deposit rates of as low as 2 percent....
The Federal Reserve plays a vital role in both the nation’s retail and
wholesale payments systems, providing a variety of f inancial services to
depository institutions. Retail payments are generally for relatively small-
dollar amounts and often involve a depository institution’s retail clients—
individuals and smaller businesses. The Reserve Banks’ retail services
include distributing currency and coin, collecting checks, and electroni-
cally transferring funds through the automated clearinghouse system.
The Company uses derivative financial instruments principally in the management of its
foreign currency risks. A derivative financial instrument is recognized by the Company on
its balance sheet at the value of the consideration given or received for it. After initial
recognition the Company measures derivatives at their fair value. Gains or losses arising
from changes in the fair value of a derivative are recognized in the income statement for the
period in which they arise to the extent they hedge an asset or liability that has been
recognized on the balance sheet.
The preparation of financial statements requires management to make estimates and
assumptions that affect amounts reported in the consolidated financial statements in order
to conform with generally accepted accounting principles. Changes in such estimates and
assumptions may affect amounts reported in future periods.
Cash flow statements
Cash flow statements have been prepared under the indirect method in accordance with
Dutch GAAP, which is substantially similar to the requirements of SFAS No. 95
‘Statement of Cash flows'.