Credit Engineering for Bankers, 2nd Edition

Chapter 2 International Financial Reporting Standards

Chapter Outline

• The Tie Between Bankers and Auditors 19
  • The Auditor’s Role 19
  • Accounting Conventions 21
  • Auditor’s Opinions 23
    • Qualified Opinion 23
    • Adverse Opinion 23
    • Disclaimer 24
  • Letter of Transmittal 25
  • Compilation 25
• A Review of Accounting Principles 26
  • Historical Cost 26
  • Accounting Standards as Applied to Revenue Realization 26
  • The Matching Principle 27
  • Consistency 27
  • Disclosure 27
  • Objectivity 28
• Financial Reports 28
  • Frequency of Statements 28
    • Annual Statements 28
    • Interim Statements 28
  • Footnotes 29
  • Contingent Liabilities 30
    • Classification of Contingencies 31
    • General Loss Contingencies 31
    • Financial Instruments with Off-Balance Sheet Risk 31
    • Product Warranties or Defects ...