Unique Bank Accounting GAAP Issues

OVERVIEW

Attendees will:

• Understand the way accounting “rules” are made by the FASB in the private sector
• Focus on recent accounting trends that emphasize:
  • Balance sheet over income statement
  • Current values over historical costs
  • Full disclosure over detailed schedules
• Focus on the general principles underlining GAAP “rules”
• Appreciate unique peculiarities of bank accounting
• Comprehend the intricacies of bank financial statements
• Master the complete set of financial statements and related schedules and reports

This bank compliance session introduces and explains how bank accounting “rules” are made in the US.

It also includes discussions of recent accounting trends such as:

• Emphasis on balance sheet in place of emphasis on the income statement
• Movement toward more use of current values in financial statements
• Emphasis on disclosure of business risks (both recorded and off-balance sheet)

Additionally, the following underlying accounting concepts are covered to help accountants and others understand the general principles covered by the authoritative accounting literature.

• Entity Concept
• Going Concern Concept
• Stable Monetary Unit Concept (Historical Cost)
• Consistency/Comparability
• Revenue Realization/Recognition
• Doctrine of Conservatism
• Matching/Materiality
• Asset Valuation
• Fair Presentation/Full Disclosure

Certain unique accounting peculiarities (i.e. daily balances, single-entry bookkeeping, non-refundable fees, OREO, loan loss reserves etc.) will be reviewed along with coverage about the typical bank GAAP balance sheet and income statement and the other information that “travels” with those GAAP financial statements. Also, briefly covered are the:

• Importance of the Footnotes to GAAP Financial Statements
• Auditor’s Report on Financial Statements
• Other “Supplemental” Financial Statement Data
• MD&A (Management Discussion & Analysis)
• Typical Ratios (liquidity, turnover, leverage and profitability) used by bank financial statement analysts

This Bank Accounting and GAAP Financial Statements session is essential for all bank management personnel.

WHY SHOULD YOU ATTEND

Attendees should attend to learn the basics underlying GAAP accounting for bank financial statements. The webinar will:

• Erase the fear and apprehension that often accompanies the uniqueness of bank accounting
• Pinpoint and facilitate the understanding of the unique GAAPs
• Classify any uncertainty with respect to how bank’s record, classify and interpret financial transactions in GAAP financial statement format
• Analyze the financial statements, footnotes, and the accompanying information
• Allow attendees to master the GAAP financial statement requirements for banks
• Eliminate the common misconception that bank accounting is “difficult”
• Learn about the presentation of bank financial statements, particularly the income statement and the statement of cash flows
• Enhance your abilities to analyze and use bank financial statements
• Grasp the “so-called” unique aspects of bank accounting so the financial statements can be used as an analytical tool for reviewing the banks financial position and its results of operations
• Further broaden your analytical skills with respect to financial statements
• Learn why and how bank accounting is formulated
• Understand the importance of footnotes
• Compare and contrast the meaning of various ratios with the financial statement reported dollar amounts
• Learn what is the typical content of the “other supplemental data”
• Distinguish between the various types of audit reports that can be issued

AREAS COVERED

The webinar will cover areas designed to help attendees:

• Obtain an overview of Generally Accepted Accounting Principle (GAAP), including the public sector rule making mechanism, the current accounting trends and the FASB’s conceptual framework
• Understand unique banking features such as:
  • Daily balancing and posting of transactions to the trial balances
  • Single entry bookkeeping
  • Continuous departmental accounting (due to; due from)
  • The “proof” function
  • Separate ledgers and memo
• Review a listing of various unique bank accounting issues
• Focus on detail accounting for investments in debt, and equity securities
• Master GAAP financials and related footnotes
• Analyze other information that “travels” with the GAAP financial statements including:
  • Auditor’s report
  • Management report on internal control over financial reporting
  • Supplemental data
  • M,D&A
• Comprehend the importance placed on the balance sheet activity as opposed to income statement matters
• Distinguish between permanent impairment and other than temporary impairment (OTTI)
• Understand why accounts normally with debit balances wind up with credit balances
• Understand why accounts normally with credit balances wind up with debit balances
• Understand the key words in the audit report and other reports
• Comprehend the need for clear language in the M,D&A and contrast the M,D&A coverage with the financial statement information

LEARNING OBJECTIVES

• Learn GAAP rule making mechanism
• Understand various unique accounting issues
• Analyze journal entries and GAAP disclosures for accounting for marketable securities
• Analyze bank GAAP financial statements

WHO WILL BENEFIT

• Financial professionals (controllers, treasurer, etc.)
• Internal auditors
• External auditors
• New bank accountants
• Veteran bank accountants seeking refresher

Email: [email protected]

Toll Free: +1-844-746-4244

Tel: +1-516-900-5515

Fax: +1-516-900-5510

SPEAKER

Paul J. Sanchez, CPA, CBA, CFSA, CGMA conducts a small CPA practice in Port Washington, New York. He is also the owner of Professional Service Associates (PSA), a consulting and professional training and development business servicing corporate clients (auditors, controllers, etc.), CPA firms, professional associations and others. He was an assistant professor at Long Island University - C.W. Post Campus as well as an adjunct lecturer at City University of New York. Prior to starting PSA, he was the Vice President-Professional Development for the Audit Division of a regional bank and Director of Professional Practices and Vice President of a money-center bank, where he directed the professional practice development and training for internal auditors. He also was on the technical staff of the Auditing Standards and Examinations Divisions of the AICPA. He practiced public accounting in the New York office of Deloitte where he also was a firm recruiter and in-house professional development instructor. He was an owner and auditing and accounting seminar leader for the Person/Wolinsky CPA Review Courses, a company that prepared candidates to pass the Uniform CPA Examination. He is a frequent lecturer and seminar leader for accounting, auditing, banking, risk assessment and other professional presentations. He is the author of the textbook, “Accounting Basics for Community Financial Institutions” (Financial Managers Society, 2nd edition, Chicago, 2009) and the “Ideas an Analysis Letter: The Sanchez Take” (see www.sanchez-psa.com). As a contributing author, his chapter on ‘An Auditor’s Approach to Risk-Based Auditing: What to Audit and When,’ is included in the textbook, “Effective Auditing for Corporates: Key Developments in Practice and Procedures,” (Bloomsbury Information, Ltd, London, 2012).

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