Royal Bank of Canada Income Statement Analysis Report

This report provides an in-depth analysis of Royal Bank of Canada's (RBC) income and comprehensive income statements. It examines the components of the income statement, including interest income, non-interest income, and provisions for credit losses, while also considering the comprehensive income statement items like gains and losses from hedges, remeasurement of employee benefits, and foreign currency items. The analysis compares the presented financial information with the concepts discussed in Chapter 3. The report concludes that RBC's financial statements are prepared in accordance with providing a true and fair view of the organization's financial position. The report also references the guidelines followed in their preparation and highlights the items which constitute the income and comprehensive income statements of RBC. The report includes information about the company's background and its operations, as well as how its financial statements align with the principles of financial reporting.

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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INCOME STATEMENT ANALYSIS OF ROYAL BANK OF CANADA
Executive Summary
This report aims to analyze the 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.

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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

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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. They are also accompanied by appropriate footnotes where required. The
comprehensive income statement includes items like gains and losses from hedges,
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. and Vasileiou, 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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INCOME STATEMENT ANALYSIS OF ROYAL BANK OF CANADA
www.Rbc.com (2019). Corporate Profile - RBC. [online] www.Rbc.com. Available at:
http://www.rbc.com/aboutus/index.html [Accessed 4 Jun. 2019].