Financial Analysis of four Banks - Corporate Accounting

Corporate Accounting
Financial Analysis of four Banks
Financial analysis
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Executive Summary
Financial information is now completely noteworthy from past some years for
companies due to enlarged convolution in the businesses. Shareholders need annual reports of
the company so that they determine their progress and invest accordingly. This report has
revealed the key information which could be used by readers to determine the optimum
capital structure.

Table of Contents
Executive Summary...............................................................................................................................2
Introduction...........................................................................................................................................4
Answer to question no-1........................................................................................................................4
CORPORATE REGULATION.............................................................................................................4
Answer to question no-2........................................................................................................................5
ACCOUNTING STANDARD SETTING.............................................................................................5
Answer to question no-3........................................................................................................................6
Owners’ Equity......................................................................................................................................6
Ordinary Share capital.......................................................................................................................8
Other Equity Instruments and retained earning..................................................................................8
Reserves............................................................................................................................................8
Retained profits.................................................................................................................................9
Answer to question no-4........................................................................................................................9
Debt and equity position of the four firms that you have selected.......................................................9
Conclusion.......................................................................................................................................10
References...........................................................................................................................................11

Introduction
This report has divulged the key information on the corporate regulation and
accounting standard which needs to be followed by company to make the business
transparent to its stakeholders. The details of the equity and debt capital structure of four
banks have also been discussed to identify the financial leverage and cost of capital
Answer to question no-1
CORPORATE REGULATION
With the ramified changes in time, disclosure of the financial information to the
stakeholders is very much required. It is analyzed that each and every company should follow
proper IFRs rules and accounting standards if these companies want to establish
harmonization in international and domestic accounting rules and frameworks while
preparing the financial statements (Mwangi, and Murigu, 2015). As shareholders plays an
important role for a company who takes decision that determined by the financial position of
the company. Companies are having external shareholders along with internal shareholders.
Financial report helps in assisting the information about the company for the shareholders.
They know whether the company is growing or fallen. The external holders such as
government, investors, business communities, shareholders does not associate with the day
to day functioning of the company so they desire to get the financial report of the company so
that they determine the actual position related to monetary and non-monetary administration
of the company. Financial reports consist of numerous things like solvency position,
profitability position, liquidity position and also market valuation of the company. The non-
monetary administration consists all the social responsibilities regarding towards the society,
and report on renewable development (Morris, 2017).
The managers are not allowed to disclose the information voluntarily regarding the financial
statements and reports of the company due to increased value of financial statements for the
shareholders so they must be extremely coordinated and managed. The managers are not to
communicate the information that doesn’t show the actual results or condition of the
company or having the estimate report that doesn’t show the actual position even if the
manager is permitted to disclose the information voluntarily. The financial report is
composed to perform distinct functions some of them are: determining the real financial