Articles Tagged ‘Bank’
1. - What is a financial statement? It is a document whose purpose is to provide information on the company's financial situation to support decision-making. 2. - What is the financial situation in the company? Is the situation that is according to the results once the operations have been performed to date or period? 3. - What is the point of contact between the statement of financial position with the statement? The focal point is the profit or loss realized from the exercise. 4. - What statements do you know? The income statement, the statement of costs of production, income statement and statement of changes in financial position. 5. - How do you determine the cost of sales? Initial Inventory + Shopping = Available - Final Inventory = Cost of sales 6. - How do you determine the cost of production and of sales? The cost of sales shows the cost of production or acquisition, as the processor or trader of goods sold that generated the income reported on line sales. 7...
The analysis of the financial statements of the company, is part of a process of information whose fundamental objective is to provide data for decision-making. Users of this information are many and varied, from business managers interested in evaluating it, financial managers about the viability of new investments, new projects and what is the best way of financing to foreign banks on whether to grant credit or not to undertake such investments. The professor of the Autonomous University of Mexico, Mr. Juan Antonio Martínez, in the Diploma in Finance provides: "The financial analysis is a tool or technique that applies the financial manager for the historical evaluation of a public or private social agency. The method of technical analysis as applicable to the interpretation, shows the following order to separate and understand the numerical descriptors and integrate the contents of the financial statements. From the above it follows that the Economic and Financial Analysis is...
The main source of information or material to the financial and economic analysis, what are the financial statements are the result of a complex interplay of theory and accounting practice, with several social-economic influences, political and legal. In its etymology the word state is derived from Latin "status" that indicates "situation in which there is a particular person or thing and each of the successive modes of being of a person or thing subject to changes affecting their status ". As regards the term finance comes from the Latin "finis," meaning "the term or performance of an obligation to give money." According to Name "Basic Financial Statements of Accounting, are reports that are used primarily to raise awareness of the situation or a company's financial position at a particular time of his life, as well as the result of his business during an accounting period given” Before directing attention to the techniques of analysis to be addressed in the next chapter, ana...
Another widely used figure is the bank's net income. It is important to distinguish interest income from non-interest income. In credit markets open and sophisticated, the income of the interest differentials should be minimal and reflect the risk, as well as being reasonable component of income of the bank. But in many countries (Japan, Russia) the government subsidizes banks away money cheaply (through the Central Bank or through bonds). The banks then proceed to provide cheap funds at exorbitant fees to their customers, thereby gaining tremendous interest. In many countries, income from government securities are not taxed, which represents another type of subsidy. A high subsidy that comes from an interest is a sign of weakness, not health, for today and tomorrow there. The preferred indicator should be income from operations (fees, commissions and other additional charges.) Here are some guidelines to be observed. A relevant question is whether the bank is accredited by interna...
Bank can borrow cheap money from the central bank (or pay low interest to savers) and invest in safe bonds market, earning an income in much greater interest on the bonds. The result: increased revenue and earnings of the bank due to an illegal operation and short-term production. Otherwise, the bank's management may misinterpret the amount of bad loans in the banking book. The banks' financial reports generally reflect the views of business management. And this may be a poor guide. In the main financial results page of the books of a bank should pay special attention to provisions for the devaluation of securities and ignored the difference in the exchange rate. This is especially true if the bank maintains some of its assets (in the form of loans or investments) and equity is invested in securities or instruments of foreign names. Separately, a bank may be changing its own position (the Nostro), his task as market maker or broker. The gain (or loss) in the marketing of securitie...