What is the meaning of computerized accounting?
As the name says ‘computerised accounting’ is the use of computers, software, and hardware to process financial transactions and events and produce accounting reports: A computerized accounting system (CAS) automates financial records and reporting processes of financial transactions and events and produce reports based on user requirements. The process of financial transactions done through…
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Preparation and Presentation of Financial Statements of Banks
The Bank’s financial statements are prepared under the historical cost convention, on the accrual basis of accounting on a going concern basis, unless otherwise stated, and conform in all material aspects to Generally Accepted Accounting Principles (GAAP) in India, which comprise applicable statutory provisions, regulatory norms/guidelines prescribed by the Reserve Bank of India (RBI), Banking…
Read article Accounting Treatment of Specific Items under accounting policies of banks
The term “accounting treatment” represents the prescribed manner or method in which an accountant records and presents a specific business transaction or event in the establishment’s financial statements. The accounting policies of Banks require banks to disclose the key areas of operations in one place (under Schedule 17) along with notes to accounts in their…
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Understanding Comments on Profit and Loss Account Items
Many methods and techniques are used in the analysis of financial statements including profit and loss accounts. They include (i).Trend analysis (Historical standard): A comparison is done of current performance with past figures of the firm. (ii). External Standards: Comparison is done between the two business concerns of the same size, which can also be…
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Disclosure Requirements of Banks to Notes to Accounts,
Financial statement disclosures are non-financial information that appears at the end of a financial statement. This information helps investors, lenders, and others make decisions. The Basel Framework’s Pillar 3 outlines a set of public disclosure requirements for internationally active banks. These requirements provide market participants with information to assess a bank’s capital adequacy and material…
Principal Books of Account maintained in banks
Books of Accounts include documents and books used in the preparation of financial statements. It includes journals, ledgers, cash book,s and subsidiary books. The principal book of accounts in a bank is the General Ledger (GL), which is also known as the book of final entry. Banks maintain a general ledger that summarizes all financial…
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