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Events After Reporting Period (IAS 10)

    Events after Reporting Period  Events that occurs after the end of reporting period but before the authorization of financial statements are called events after reporting period. These events may or may not in in the favor of an entity. [embed]https://youtu.be/jr_OFMNl1c0[/embed] [embed]https://youtu.be/MgH-JL5v_nU[/embed] Type of Events There are two types of events: 1) Adjusting events after reporting period: There are circumstances that give evidence of condition that existed at the reporting period. 2) Non-adjusting events after reporting period: There are circumstances that give indication of conditions that arose after reporting period. Reporting Periods Reporting periods are quarter end, half year end and financial year end dates. Financial Statement Authorization Date An entity issues...

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Internal Control over Financial Reporting (ICFR)

  Central Bank Guidelines on Internal Control over Financial Reporting   The State Bank of Pakistan vide its BSD circular no.7 dated May 27, 2004   (https://www.sbp.org.pk/bsd/2004/C7.htm) has issued guidelines on the internal control over financial reporting for all banks / DFIs naming SBP Internal Control Guidelines) and in order to ensure consistency in the process of compliance with the internal control guidelines, SBP vide BSD Circular No.5 dated Feb 24, 2009 https://dnb.sbp.org.pk/bsrvd/2009/C5.htm has provided the roadmap naming SBP road map identifying various activities / stages involved in the internal control program. The requirements of each stage of the roadmap has been further elaborated...

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Prudential Regulation Consumer Financing 2

  Summary of Prudential Regulation for consumer 2 We have compiled summary of prudential regulation for consumer financing 2. Separate regulations for credit card, auto loan and personal loan are as follows; Regulations for credit card   Regulation O-1 The banks should take reasonable steps to satisfy themselves that cardholders have received the card and advise them to keep the card safe and PIN secret. Regulation O-2 After cardholders have served a notice that card has been lost or stolen, banks shall be held liable for all the transactions held after said notice. However banks shall be liable for those amounts which are wrongly charged to the credit card...

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Prudential Regulation Consumer Financing 1

  Summary of Prudential Regulation for consumer We have compiled summary of prudential regulation for consumer financing. Consumer financing has three main categories which are defined below; Categories of Consumer Financing:   Credit Cards Cards which allow a customer to make payments on credit. These cards include supplementary cards. Corporate cards are not included in consumer financing. Auto Loans This loan includes loan or financing facilities for purchase of personal vehicle. Personal Loans This loan includes payment to individuals for payment of goods, services and expenses including running finances.   Regulation R-1 Consumer financing to directors, major shareholders, employees and their family members shall be at arms’ length basis. This condition is not...

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Summary of Prudential Regulation-Microfinance Banks

    Summary of Prudential Regulation-Microfinance Banks We have compiled Summary of Prudential Regulation-Microfinance Banks which is as follows: Regulation R-1 Minimum Capital Requirement: MFBs shall maintain a minimum paid up capital (net of losses) of below amounts. Minimum Capital (Rupees) Allowed to operate 1 Billion Nationwide 500 million Specific Province 400 million Specific Region 300 million Specific District   Capital Adequacy Ratio (CAR) = 15% of risk weighted assets of MFB. Regulation R-2 Exposure against Contingent Liabilities Period Contingent Liabilities First 3 years of operation Not exceeding 3 times of its equity Thereafter Not exceeding 5 times of its equity   Regulation R-3 Maintenance of cash reserve and liquidity Period Contingent Liabilities In the form of Cash Reserve Requirement (CRR) Not < 5% of demand and time deposits with tenor...

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Earnings per Share (EPS)

    Earnings per Share (EPS) – International Accounting Standards (IAS) 33   Earnings per Share (EPS) is an important concept of accounting. In this article we are covering below topics of EPS; Basic concept and formula of EPS Preference Shares treatment Issue of new shares Bonus Issue   Basic Concept and formula of earnings per share The rules for calculating Earnings per Share are defined in IAS 33. It is very easy concept. The profit is adjusted with few items is divided by weighted average number of shares in the particular period. What Earnings shall be taken?  Earnings is the profit after deducting taxation (PAT).   Preference Shares: EPS is a measure...

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How Marketing Department Works

    Introduction How Marketing Department Works! The function of marketing department in any organization is very important in today's world. This department is generally responsible for development and implementation of marketing strategies. It also plans for the company which includes creation of corporate brand, create awareness of products and services. Marketing Department Responsibilities Depending on the organization the marketing department is responsible for following functions. Development of marketing strategies Marketing Department develops and executes  strategies , it also prepare plans for the organization in accordance with the business and strategic objectives. Promotion of company products To create visibility of the corporate brands and promotions of company’s products and...

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Foreign Exchange Rate

    Foreign Exchange Rate Foreign exchange rate is the price at which currency of one country is exchanged with currency of another currency. There are two methods of presenting currencies; Direct Quote Indirect Quote 1) Direct Quote Direct quote is the number of units required for domestic currency to be exchanged with foreign currency. In the direct quote domestic currency is written first. For example, Pakistan rupees with US dollar can be expressed in direct quote as Rs.160 for US $ 1. This is written as Rs.160 / $1. 2) Indirect Quote Indirect quote is the number of units required for foreign currency to be exchange with local currency.In...

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PRICE-SENSITIVE INFORMATION

  Rules 5.6.1 of Pakistan Stock Exchange (PSX) requires each listed company to give notice to SECP and PSX for all price sensitive information.   Every Listed Company shall immediately inform to the Commission (SECP) and the Exchange (PSX) all price-sensitive information relating to the business and other affairs of the listed company that may affect the share price of the company in the manner prescribed by the Exchange from time to time. When to share The said information needs to be communicated to the Exchange before it is intimated to any other person or it is printed in newspaper or shown in electronic media. What...

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Diluted Earnings per Share (EPS) – IAS 33

  Diluted earnings per Share (EPS) is an important concept of accounting. In this article we are covering below topics of diluted EPS; Meaning of Dilution Convertible shares and convertible bonds Options and Warrants Employee share options   Basic Concept of Diluted EPS Dilution means reduction in strength. A company issues convertible shares / bonds, options and warrants which increases the share capital of the company and reduces earning per share hence dilution. Diluted EPS is calculated by adjusting earnings of the company and also its number of shares. Earnings are adjusted because interest or dividend shall no longer be paid upon conversion of shares...

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