INCOME STATEMENT ANALYSIS OF ROYAL BANK OF CANADA.
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Running head: INCOME STATEMENT ANALYSIS OF ROYAL BANK OF CANADA INCOME STATEMENT ANALYSIS OF ROYAL BANK OF CANADA Name of the Student Name of the University Author Note
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1 INCOME STATEMENT ANALYSIS OF ROYAL BANK OF CANADA Executive Summary This report aims to analyzethe income and comprehensive income statements of Royal Bank of Canada and compares them with the guidelines involved in their preparation. It concludes by understanding whether the statements present true and fair information or not.
2 INCOME STATEMENT ANALYSIS OF ROYAL BANK OF CANADA Table of Contents Introduction..................................................................................................................................3 Discussion....................................................................................................................................3 Analysis of Income Statements of RBC......................................................................................3 Conclusion...................................................................................................................................3 References....................................................................................................................................3
3 INCOME STATEMENT ANALYSIS OF ROYAL BANK OF CANADA Introduction Royal Bank of Canada (RBC) is Canada’s biggest bank in terms of market capitalization and provides services related to finance, wealth management and insurance(www.Rbc.com, 2019). It serves more than 16 million clients in 36 countries. Discussion Income statement comprises of regular items, which are a part of profit or loss according to the IAS guidelines. Some of these include interest and dividend income, insurance premium and fees paid. Comprehensive income statement includes those items that do not form a part of the regular income statement of a company. It is inclusive of items whose value varies continuously due to market fluctuations (Turktas et al. 2013). These items include profits and losses incurred on a hedge, actuarial profits and losses from a defined benefit plan and fluctuations in revaluation amount. Analysis of Income Statements of RBC For Royal Bank of Canada, the income statement includes items like income and non- interest income, provisions for credit losses and others that are considered a regular part of a business.Theyarealsoaccompaniedbyappropriatefootnoteswhererequired.The comprehensiveincomestatementincludesitemslikegainsandlossesfromhedges, remeasurement of employee benefits and foreign currency items that are not a part of the regular business process. Conclusion It can be concluded that the income and comprehensive income statements of RBC are prepared in accordance with providing the users with a true and fair view of the financial situation of the organization and there exists no misleading information or unnecessary usage of the comprehensive income statement. References Turktas,B.,Georgakopoulos,G.,Sotiropoulos,I.andVasileiou,K.Z.,2013.Reporting comprehensive income: Reasons for reporting choices and investor reactions.International Journal of Economics and Finance,5(4), pp.1-20.
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4 INCOME STATEMENT ANALYSIS OF ROYAL BANK OF CANADA www.Rbc.com(2019).CorporateProfile-RBC.[online]www.Rbc.com.Availableat: http://www.rbc.com/aboutus/index.html [Accessed 4 Jun. 2019].