DOCSLIB.ORG

2010 Proactive Growth

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
2010 Proactive Growth Stock Code: 2388 BOC Hong Kong (Holdings) Limited PROACTIVE Annual Report 2010 Management for Sustainable GROWTH 52/F Bank of China Tower, 1 Garden Road, Hong Kong Annual Report Website: www.bochk.com 2010 The printed version of the 2010 Annual Report of the Company will replace this version in mid April 2011 BOC Hong Kong (Holdings) Limited (“the Company”) was incorporated in Hong Kong on 12 Technology People September 2001 to hold the entire equity interest in Bank of China (Hong Kong) Limited (“BOCHK”), its principal operating subsidiary. Bank of China Limited holds a substantial part of its interests in the shares of the Company through BOC Hong Kong (BVI) Limited, an indirect wholly owned subsidiary of Bank of China Limited. BOCHK is a leading commercial banking group in Hong Kong. With nearly 270 branches, 530 ATMs and other delivery channels in Hong Kong, BOCHK and its subsidiaries offer a comprehensive range of financial products and services to individual and corporate customers. BOCHK is one of the three note issuing banks in Hong Kong. In addition, the BOCHK Group (comprising BOCHK, Nanyang Commercial Bank and Chiyu Banking Corporation) and its subsidiaries have 25 branches and sub- branches in the Mainland of China to provide cross- border banking services to customers in Hong Kong and the Mainland. BOCHK is appointed by the People’s Bank of China as the Clearing Bank for Renminbi (RMB) business in Hong Kong. On 13 July 2010, BOCHK was authorised as the Clearing Bank of RMB banknotes business for the Taiwan region. The Company began trading on the main board of the Stock Exchange of Hong Kong on 25 July 2002, with stock code “2388”, ADR OTC Symbol: “BHKLY”. OUR VISION TO BE YOUR PREMIER BANK OUR MISSION OUR CORE VALUES Build Social Responsibility customer satisfaction and provide quality We care for and contribute to our communities and professional service Performance Offer We measure results and reward achievement rewarding career opportunities and cultivate staff commitment Integrity We uphold trustworthiness and business ethics Create values and deliver superior returns to Respect shareholders We cherish every individual Innovation Combining the initials of mission and We encourage creativity core values, we have Teamwork BOC SPIRIT We work together to succeed TdA – concept and design www.tda.com.hk Nature Contents Financial Highlights 2 Five-Year Financial Summary 3 Chairman’s Statement 6 Chief Executive’s Report 8 Management’s Discussion & Analysis 16 Corporate Information 56 Board of Directors and Senior Management 57 Report of the Directors 62 Corporate Governance 70 Investor Relations 82 Corporate Social Responsibility 90 Theme Awards and Recognition 102 Advanced technology and nature can work in equanimity for the benefit of mankind. By making a harmonious blend of these Financial Section 104 important aspects of modern life, we aim to create more value for customers and shareholders while contributing to the Appendix – Subsidiaries of the Company 258 sustainable development of society. Through the innovative use of information Definitions 262 technology, the Group continues to enhance our products and services, transcending the boundaries of time and Branch Network & Corporate Banking Centres 265 space, to better serve our corporate and individual customers in Hong Kong, the Mainland of China and overseas. At the same time, we care for the environment that we serve. Our commitment to Corporate Social Responsibility (CSR), as reflected by our support of Hong Kong National Geopark, is a valuable component of our long-term competitiveness. Annual Report 2010 BOC Hong Kong (Holdings) Limited 1 FINANCIAL HIGHLIGHTS 2010 20096 Change For the year HK$’m HK$’m +/(-)% Net operating income before impairment allowances 27,508 26,055 5.58 Operating profit 18,239 15,104 20.76 Profit before taxation 19,742 16,724 18.05 Profit for the year 16,690 14,251 17.11 Profit attributable to the equity holders of the Company 16,196 13,930 16.27 Per share HK$ HK$ +/(-)% Earnings per share 1.5319 1.3175 16.27 Dividend per share 0.9720 0.8550 13.68 At year-end HK$’m HK$’m +/(-)% Capital and reserves attributable to the equity holders of the Company 115,181 104,179 10.56 Issued and fully paid share capital 52,864 52,864 – Total assets 1,661,040 1,212,794 36.96 Financial ratios % % Return on average total assets1 1.21 1.21 Return on average capital and reserves attributable to the equity holders of the Company2 14.77 14.83 Cost to income ratio 34.84 46.60 Loan to deposit ratio3 59.69 60.98 Average liquidity ratio4 38.77 40.18 Capital adequacy ratio5 16.14 16.85 Profit for the year 1. Return on average total assets = Daily average balance of total assets 2. Return on average capital and reserves attributable to the equity holders of the Company Profit attributable to the equity holders of the Company = Average of the beginning and ending balance of capital and reserves attributable to the equity holders of the Company 3. Loan to deposit ratio is calculated as at year end. Loan represents gross advances to customers. Deposit includes structured deposits reported as “Financial liabilities at fair value through profit or loss”. 4. Average liquidity ratio is calculated as the simple average of each calendar month’s average liquidity ratio of BOCHK for the year. 5. Capital adequacy ratio is computed on the consolidated basis that comprises the positions of BOCHK and certain subsidiaries specified by the HKMA for its regulatory purposes and in accordance with the Banking (Capital) Rules. 6. Certain comparative amounts have been restated to reflect the early adoption of HKAS 12 (Amendment) “Income Taxes”. Profit attributable to the Total assets Capital and reserves equity holders of the attributable to the equity Company holders of the Company HK$’m HK$’m HK$’m 18,000 1,800,000 120,000 15,000 1,500,000 100,000 12,000 1,200,000 80,000 9,000 900,000 60,000 6,000 600,000 40,000 3,000 300,000 20,000 0 0 0 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 2 BOC Hong Kong (Holdings) Limited Annual Report 2010 FIVE-YEAR FINANCIAL SUMMARY The financial information of the Group for the last five years commencing from 1 January 2006 is summarised below: 2010 20092 20082 20072 20062 For the year HK$’m HK$’m HK$’m HK$’m HK$’m Net operating income before impairment allowances 27,508 26,055 25,526 27,254 21,309 Operating profit 18,239 15,104 4,182 18,033 16,545 Profit before taxation 19,742 16,724 4,078 19,126 17,139 Profit for the year 16,690 14,251 2,977 15,883 14,269 Profit attributable to the equity holders of the Company 16,196 13,930 3,313 15,512 13,992 Per share HK$ HK$ HK$ HK$ HK$ Earnings per share 1.5319 1.3175 0.3134 1.4672 1.3234 At year-end HK$’m HK$’m HK$’m HK$’m HK$’m Advances and other accounts 645,424 527,135 469,493 420,234 352,858 Total assets 1,661,040 1,212,794 1,147,245 1,067,637 928,953 Daily average balance of total assets 1,382,121 1,177,294 1,099,198 1,032,577 915,900 Deposits from customers1 1,027,267 844,453 811,516 799,565 703,776 Total liabilities 1,542,751 1,105,879 1,061,695 971,540 841,401 Issued and fully paid share capital 52,864 52,864 52,864 52,864 52,864 Capital and reserves attributable to the equity holders of the Company 115,181 104,179 83,734 93,879 85,565 Financial ratios % % % % % Return on average total assets 1.21 1.21 0.27 1.54 1.56 Cost to income ratio 34.84 46.60 34.36 28.52 30.78 Loan to deposit ratio1 59.69 60.98 56.74 51.66 49.32 1. Deposits from customers include structured deposits reported as “Financial liabilities at fair value through profit or loss”. 2. Certain comparative amounts have been restated to reflect the early adoption of HKAS 12 (Amendment) “Income Taxes”. Advances and other accounts Deposits from customers HK$’m HK$’m 800,000 1,200,000 700,000 1,000,000 600,000 800,000 500,000 400,000 600,000 300,000 400,000 200,000 200,000 100,000 0 0 06 07 08 09 10 06 07 08 09 10 Annual Report 2010 BOC Hong Kong (Holdings) Limited 3 OFFERING QUALITY SERVICES TO YOU CHAIRMAn’s STATEMENT I am pleased to report that the Group delivered record results loan ratio further improving to 0.14% from 0.34% at end in 2010, with both net operating income before impairment 2009. allowances and profit attributable to shareholders achieving new highs since our listing. The Group’s net operating income Second, we adopted a proactive approach in managing our before impairment allowances increased by 5.6% year-on-year capital and liquidity. We firmly believe that a strong capital to HK$27,508 million, despite pressure from low interest rates and liquidity position is key to support business growth and intense competition. Operating profit before impairment and to ensure our competitiveness. As at end 2010, we allowances increased by 28.8% to HK$17,924 million. The remained well-capitalised with consolidated capital adequacy Group’s profit attributable to shareholders increased by 16.3% ratio standing comfortably at 16.14% and core capital ratio year-on-year to HK$16,196 million or HK$1.5319 per share.
Load more

Recommended publications
  • Calls, Puts and Select Alls
    CIMA P3 SECTION D – MANAGING FINANCIAL RISK THE PUTS, THE CALLS AND THE DREADED ‘SELECT ALLs’ Example long form to OT approach Here is my favourite long form question on Interest rate risk management: Assume you are the Treasurer of AB, a large engineering company, and that it is now May 20X4. You have forecast that the company will need to borrow £2 million in September 20X4 for 6 months. The need for finance will arise because the company has extended its credit terms to selected customers over the summer period. The company’s bank currently charges customers such as AB plc 7.5% per annum interest for short-term unsecured borrowing. However, you believe interest rates will rise by at least 1.5 percentage points over the next 6 months. You are considering using one of four alternative methods to hedge the risk: (i) A traded interest rate option (cap only); or (ii) A traded interest rate option (cap and floor); or (iii) Forward rate agreements; or (iv) Interest rate futures; or You can purchase an interest rate cap at 93.00 for the duration of the loan to be guaranteed. You would have to pay a premium of 0.2% of the amount of the loan. For (ii) as part of the arrangement, the company can buy a traded floor at 94.00. Required: Discuss the features of using each of the four alternative methods of hedging the interest rate risk, apply to AB and advise on how each might be useful to AB, taking all relevant and known information into account.
    [Show full text]
  • International Harmonization of Reporting for Financial Securities
    International Harmonization of Reporting for Financial Securities Authors Dr. Jiri Strouhal Dr. Carmen Bonaci Editor Prof. Nikos Mastorakis Published by WSEAS Press ISBN: 9781-61804-008-4 www.wseas.org International Harmonization of Reporting for Financial Securities Published by WSEAS Press www.wseas.org Copyright © 2011, by WSEAS Press All the copyright of the present book belongs to the World Scientific and Engineering Academy and Society Press. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the Editor of World Scientific and Engineering Academy and Society Press. All papers of the present volume were peer reviewed by two independent reviewers. Acceptance was granted when both reviewers' recommendations were positive. See also: http://www.worldses.org/review/index.html ISBN: 9781-61804-008-4 World Scientific and Engineering Academy and Society Preface Dear readers, This publication is devoted to problems of financial reporting for financial instruments. This branch is among academicians and practitioners widely discussed topic. It is mainly caused due to current developments in financial engineering, while accounting standard setters still lag. Moreover measurement based on fair value approach – popular phenomenon of last decades – brings to accounting entities considerable problems. The text is clearly divided into four chapters. The introductory part is devoted to the theoretical background for the measurement and reporting of financial securities and derivative contracts. The second chapter focuses on reporting of equity and debt securities. There are outlined the theoretical bases for the measurement, and accounting treatment for selected portfolios of financial securities.
    [Show full text]
  • Interest Rate Caps “Smile” Too! but Can the LIBOR Market Models Capture It?
    Interest Rate Caps “Smile” Too! But Can the LIBOR Market Models Capture It? Robert Jarrowa, Haitao Lib, and Feng Zhaoc January, 2003 aJarrow is from Johnson Graduate School of Management, Cornell University, Ithaca, NY 14853 ([email protected]). bLi is from Johnson Graduate School of Management, Cornell University, Ithaca, NY 14853 ([email protected]). cZhao is from Department of Economics, Cornell University, Ithaca, NY 14853 ([email protected]). We thank Warren Bailey and seminar participants at Cornell University for helpful comments. We are responsible for any remaining errors. Interest Rate Caps “Smile” Too! But Can the LIBOR Market Models Capture It? ABSTRACT Using more than two years of daily interest rate cap price data, this paper provides a systematic documentation of a volatility smile in cap prices. We find that Black (1976) implied volatilities exhibit an asymmetric smile (sometimes called a sneer) with a stronger skew for in-the-money caps than out-of-the-money caps. The volatility smile is time varying and is more pronounced after September 11, 2001. We also study the ability of generalized LIBOR market models to capture this smile. We show that the best performing model has constant elasticity of variance combined with uncorrelated stochastic volatility or upward jumps. However, this model still has a bias for short- and medium-term caps. In addition, it appears that large negative jumps are needed after September 11, 2001. We conclude that the existing class of LIBOR market models can not fully capture the volatility smile. JEL Classification: C4, C5, G1 Interest rate caps and swaptions are widely used by banks and corporations for managing interest rate risk.
    [Show full text]
  • Liquidity Effects in Options Markets: Premium Or Discount?
    Liquidity Effects in Options Markets: Premium or Discount? PRACHI DEUSKAR1 2 ANURAG GUPTA MARTI G. SUBRAHMANYAM3 March 2007 ABSTRACT This paper examines the effects of liquidity on interest rate option prices. Using daily bid and ask prices of euro (€) interest rate caps and floors, we find that illiquid options trade at higher prices relative to liquid options, controlling for other effects, implying a liquidity discount. This effect is opposite to that found in all studies on other assets such as equities and bonds, but is consistent with the structure of this over-the-counter market and the nature of the demand and supply forces. We also identify a systematic factor that drives changes in the liquidity across option maturities and strike rates. This common liquidity factor is associated with lagged changes in investor perceptions of uncertainty in the equity and fixed income markets. JEL Classification: G10, G12, G13, G15 Keywords: Liquidity, interest rate options, euro interest rate markets, Euribor market, volatility smiles. 1 Department of Finance, College of Business, University of Illinois at Urbana-Champaign, 304C David Kinley Hall, 1407 West Gregory Drive, Urbana, IL 61801. Ph: (217) 244-0604, Fax: (217) 244-9867, E-mail: [email protected]. 2 Department of Banking and Finance, Weatherhead School of Management, Case Western Reserve University, 10900 Euclid Avenue, Cleveland, Ohio 44106-7235. Ph: (216) 368-2938, Fax: (216) 368-6249, E-mail: [email protected]. 3 Department of Finance, Leonard N. Stern School of Business, New York University, 44 West Fourth Street #9-15, New York, NY 10012-1126. Ph: (212) 998-0348, Fax: (212) 995-4233, E- mail: [email protected].
    [Show full text]
  • Consolidated Policy on Valuation Adjustments Global Capital Markets
    Global Consolidated Policy on Valuation Adjustments Consolidated Policy on Valuation Adjustments Global Capital Markets September 2008 Version Number 2.35 Dilan Abeyratne, Emilie Pons, William Lee, Scott Goswami, Jerry Shi Author(s) Release Date September lOth 2008 Page 1 of98 CONFIDENTIAL TREATMENT REQUESTED BY BARCLAYS LBEX-BARFID 0011765 Global Consolidated Policy on Valuation Adjustments Version Control ............................................................................................................................. 9 4.10.4 Updated Bid-Offer Delta: ABS Credit SpreadDelta................................................................ lO Commodities for YH. Bid offer delta and vega .................................................................................. 10 Updated Muni section ........................................................................................................................... 10 Updated Section 13 ............................................................................................................................... 10 Deleted Section 20 ................................................................................................................................ 10 Added EMG Bid offer and updated London rates for all traded migrated out oflens ....................... 10 Europe Rates update ............................................................................................................................. 10 Europe Rates update continue .............................................................................................................
    [Show full text]
  • A Comparison of Alternative SABR Models in a Negative Interest Rate Environment
    Master of Science Thesis A Comparison of Alternative SABR Models in a Negative Interest Rate Environment Esmée Winnubst 10338179 30th December 2016 Faculty of Economics and Business · University of Amsterdam A Comparison of Alternative SABR Models in a Negative Interest Rate Environment Master of Science Thesis For the degree of Master of Science in Financial Econometrics at the University of Amsterdam Esmée Winnubst 10338179 30th December 2016 Supervisor: Dr. N. Van Giersbergen Second Reader: Dr. S.A. Broda Faculty of Economics and Business · University of Amsterdam Statement of Originality: This document is written by Esmée Winnubst who declares to take full responsibility for the contents of this document. I declare that the text and the work presented in this document is original and that no sources other than those mentioned in the text and its references have been used in creating it. The Faculty of Economics and Business is responsible solely for supervision of completion of the work, not for the contents. Acknowledgement: I would like to thank my supervisor Noud van Giersbergen for his as- sistance during the writing of this thesis. The work in this thesis was supported by EY. I would like to thank my colleagues at EY for their support and time. Copyright c All rights reserved. Abstract The widespread used SABR model (P. S. Hagan, Kumar, Lesniewski, & Woodward, 2002) is not able to correctly price options, capture volatility curves and inter- and extrapolate market quotes in a negative interest rate environment. This thesis investigates two extensions of the SABR model that are able to work with negative rates: the normal SABR model and the free boundary SABR model.
    [Show full text]
  • Dealers' Hedging of Interest Rate Options in the U.S. Dollar Fixed
    Dealers’ Hedging of Interest Rate Options in the U.S. Dollar Fixed-Income Market John E. Kambhu s derivatives markets have grown, the The derivatives markets’ rapid growth has been scope of financial intermediation has driven by a number of developments. In addition to evolved beyond credit intermediation to advances in finance and computing technology, the rough cover a wide variety of risks. Financial balance of customer needs on the buy and sell sides of the Aderivatives allow dealers to intermediate the risk man- market has contributed to this expansion. This balance agement needs of their customers by unbundling customer allows dealers to intermediate customer demands by passing exposures and reallocating them through the deriva- exposures from some customers to others without assum- tives markets. In this way, a customer’s unwanted risks ing excessive risk themselves. Without this ability to pass can be traded away or hedged, while other exposures exposures back into the market, the markets’ growth are retained. For example, borrowers and lenders can would be constrained by dealers’ limited ability to absorb separate a loan’s interest rate risk from its credit risk customers’ unwanted risks. by using an interest rate swap to pass the interest rate The balance between customer needs on both risk to a third party. In another example of unbun- sides of the market is most apparent in the swaps mar- dling, an option allows an investor to acquire exposure ket, the largest of the derivatives markets, where only a to a change in asset prices in one direction without small amount of residual risk remains with dealers.1 In incurring exposure to a move in asset prices in the the over-the-counter U.S.
    [Show full text]
  • How to Find Data on Reuters Quickly and Easily
    How to find data on Reuters Just what you were looking for… The world’s financial markets generate awesome amounts of data ceaselessly, and Reuters brings it straight to you. If you want to make sure that you’re benefiting from the full breadth and depth of what’s available, this book will tell you how. How to find data What’s the quickest way to find an instrument or a display in your asset on Reuters class? ... What search tools can you use?... How are the codes structured?… Which codes do you need to know? ... What news formats quickly and easily are available? ... How do you control the news you get for your market or region? quickly and easily In other words, you want specific figures and relevant analytical context. This is just what you were looking for. 2nd edition ed. Marcus Rees The second edition of the book that made sense of data 2nd edition ed. Marcus Rees 2nd edition ed. Marcus SECOND EDITION The production of this Second Edition was made possible by the kind assistance and input provided by colleagues who are experts in their respective disciplines. A special thank you goes to the following How to find data people who have helped ensure that the information here is as accurate and on Reuters comprehensive as possible. Stephen Cassidy, Stephen Connor, Ciaran quickly and easily Doody, Marian Hall, Elliott Hann, Desmond Hannon, Elaine Herlihy, Marcus Herron, Jutta Werner-Hébert, Trudy Hunt, Ian Mattinson, Barbara Miller, Vincent Nunan, 2nd edition ed. Marcus Rees Richard Pembleton, Tony Warren A further thank you to Elke Behrend and John Hendry who provided the structure and format of this guide through their work on the first edition.
    [Show full text]
  • Debt Instruments Set 9 Interest-Rate Options 0. Overview
    Debt Instruments Set 9 Backus/Novemb er 30, 1998 Interest-Rate Options 0. Overview Fixed Income Options Option Fundamentals Caps and Flo ors Options on Bonds Options on Futures Swaptions Debt Instruments 9-2 1. Fixed Income Options Options imb edded in b onds: { Callable b onds { Putable b onds { Convertible b onds Options on futures { Bond futures { Euro currency futures OTC options { Caps, o ors, and collars { Swaptions Debt Instruments 9-3 2. Option Basics Big picture { Options are everywhere Sto ck options for CEOs and others Corp orate equity: call option on a rm Mortgages: the option to re nance { Options are like insurance Premiums cover the down side, keep the up side Customers like this combination Insurer b ears risk or shares it diversi cation or reinsurance { Managing cost of insurance Out-of-the-money options are cheap er insurance with a big deductable Collars: sell some of the up side Aggregate: basket option cheap er than basket of op- tions { Managing option b o oks Customer demands may result in exp osed p osition Particular exp osure to volatility: puts and calls b oth rise with volatility Hedging through replication is another route Debt Instruments 9-4 2. Option Basics continued Option terminology { Basic terms Options are the right to buy a cal l or sell a put at a xed price strike price The thing b eing b ought or sold is the underlying This righttypically has a xed expiration date A short p osition is said to have written an option { Kinds of options European options can b e exercised only at expira- tion American options can b e exercised any time Bermuda options can b e exercised at sp eci c dates eg, b onds callable only on coup on dates Debt Instruments 9-5 2.
    [Show full text]
  • EUROPEAN COMMISSION Brussels, 18.9.2013 SWD(2013) 336 Final COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT Accompanying Th
    EUROPEAN COMMISSION Brussels, 18.9.2013 SWD(2013) 336 final COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT Accompanying the document Proposal for a Regulation of the European Parliament and of the Council on indices used as benchmarks in financial instruments and financial contracts {COM(2013) 641 final} {SWD(2013) 337 final} EN EN TABLE OF CONTENTS 1. INTRODUCTION ...................................................................................................................................................................1 2. PROCEDURAL ISSUES AND CONSULTATION OF INTERESTED PARTIES....................................................................................2 2.1. CONSULTATION OF INTERESTED PARTIES ..................................................................................................................................2 2.2. STEERING GROUP...............................................................................................................................................................2 2.3. IMPACT ASSESSMENT BOARD ...............................................................................................................................................3 3. POLICY CONTEXT .................................................................................................................................................................3 3.1. THE CURRENT EU LEGISLATIVE FRAMEWORK ON BENCHMARKS ......................................................................................................3 3.2. NATURE
    [Show full text]
  • Interest Rate Derivatives the Most Widely Used Underlying Variables in Derivatives Are Stock Prices, Stock Indexes, Commodity Pr
    Interest Rate Derivatives By Majd Bakir / www.investment-and-finance.com The most widely used underlying variables in derivatives are stock prices, stock indexes, commodity prices, exchanges rates, and interest rates. Other types of derivatives becoming very popular in recent years include credit derivatives, weather derivatives, energy derivatives, insurance derivatives, and volatility derivatives. However, the interest rate derivatives market is the largest derivative market worldwide, with a whopping notional amount outstanding, estimated in June 2009 at US$437 trillion according to the Bank for International Settlements. Of which, OTC interest rate swaps claim the lion’s share with an estimated amount outstanding of US$ 342 trillion, or 78% thereof). An interest rate derivative is a financial instrument whose payoff is based or dependent in some way on the performance of an underlying interest rate. It gives the holder the right to pay or receive a notional principal at a predetermined interest rate. This instrument, with all its different types and variants, is notoriously used to hedge exposures to interest rate movements. Product-type Classification In terms of product type, interest rate derivatives fall into three major groups: interest rate options, interest rate futures, and interest rate swaps. Interest Rate Options The most popular interest rate option products are: bond options, interest rate caps and floors, and swap options (swaptions). - Bond Options A bond option is an option that gives the holder the right to buy or sell a specific bond within a particular period or by some future date for a set price. Bond options are mainly traded over the counter, and are also embedded in bonds to be issued.
    [Show full text]
  • International Harmonization of Reporting for Financial Securities
    International Harmonization of Reporting for Financial Securities Authors Prof. Jiri Strouhal Dr. Carmen Bonaci Editor Prof. Nikos Mastorakis Published by WSEAS Press ISBN: 978-1-61804-008-4 www.wseas.org International Harmonization of Reporting for Financial Securities Published by WSEAS Press www.wseas.org Copyright © 2011, by WSEAS Press All the copyright of the present book belongs to the World Scientific and Engineering Academy and Society Press. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the Editor of World Scientific and Engineering Academy and Society Press. All papers of the present volume were peer reviewed by two independent reviewers. Acceptance was granted when both reviewers' recommendations were positive. See also: http://www.worldses.org/review/index.html ISBN: 978-1-61804-008-4 World Scientific and Engineering Academy and Society Preface Dear readers, This publication is devoted to problems of financial reporting for financial instruments. This branch is among academicians and practitioners widely discussed topic. It is mainly caused due to current developments in financial engineering, while accounting standard setters still lag. Moreover measurement based on fair value approach – popular phenomenon of last decades – brings to accounting entities considerable problems. The text is clearly divided into four chapters. The introductory part is devoted to the theoretical background for the measurement and reporting of financial securities and derivative contracts. The second chapter focuses on reporting of equity and debt securities. There are outlined the theoretical bases for the measurement, and accounting treatment for selected portfolios of financial securities.
    [Show full text]