Question

1.     From the following information extracted from a reputed commercial bank in KSA prepared a classified Balance sheet to find out the retained earnings of the Bank at the end of the financial year:

	Description	Amount SAR’000
	Cash and due from banks	4,600
	Interest-bearing deposits in other banks	332
	Funds sold and securities purchased under agreements to resell	1,313
	Trading assets	2,800
	Securities available for sale	26,500
	Loans held for sale	13,000
	Loans	115,000
	Allowance for loan and lease losses	1,200
	Premises and equipment1	1,850
	Goodwill	6,830
	Other intangible assets	1,120
	Customers’ acceptance liability	12
	Other assets	7,023
	Noninterest-bearing consumer and commercial deposits	26,320
	Interest-bearing consumer and commercial deposits	71,200
	Brokered deposits	15,600
	Foreign deposits	8,800
	Funds purchased and securities sold under agreements to repurchase	10,374
	Other short-term borrowings	1,930
	Long-term debt	20,780
	Acceptances outstanding	12
	Trading liabilities	1,530
	Other liabilities	6,140
	Common stock,	370
	Additional paid in capital	6,760
	Accumulated other comprehensive income	940
	Treasury stock, at cost, and other	490

2.     Explain the approaches, firms may use to disclose their exposure to market risk .

3.     Bring out the risls that the Lessor is exposed to.

4.     Explain the Analytical issues regarding lease accounting methods

5.     Discuss the Special lease transactions that financial institutions operate.

Answer 1