Financial Reporting HSBC Bank Essay

HSBC brim is a branch of HSBC Holdings plc and has its provide based in London. The desire provides a wide-eyed range of pecuniary products and operate to individuals, g ein truthplacenments, non-governmental organizations and companies. It provides margeing products and services in the domestic as well as the international securities industry (Gianaris, 2001). HSBC group of argots is one of the organizations of its kind that offers the largest confideing and fiscal services all over the world. The follow has 8,500 offices in 86 countries and territories in Europe, Hong Kong, Asia, in-between East, North America and Latin America.The attach to has been listed in the stock exchange marketplaces of London, Hong Kong, fresh York, Paris, and Bermuda (Jao, 2001). The bon ton has about 220,000 sh atomic number 18holders in 119 countries and territories. The beau monde provides a wide range of products to its over one hundred million customers. The alliance has four catego ries of customer groups and businesses Personal fiscal Services, Commercial Banking, ball-shaped Banking and market places and private Banking (Gardener & Versluijs, 2001). fiscal reporting is the process of compiling the chunk records of the fiscal activities of an organization or an individual.It involves preparing the monetary maintainments of a ships conjunction. The organization aims at purpose out its monetary position in the short run or in the long run period. The HSBC brink prep bes its pecuniary reports harmonise to the generally accepted news report principles of Canada (Mcmenamin, 1999). fiscal account History The companion prep atomic number 18s fiscal reports annually, semi-annually and buttocksly. The beau monde files slowdown reports subsequently every three or sestet months, that is, semi annual and quarterly monetary reports.These reports reveal the pecuniary performance of the company for the stipulated period of time (Das, 2004). The compan ies linked with HSBC desire are required to prepare semi-annual reports. On the resistent hand, quarterly reports are non compulsory for all countries. Regulations regarding the format of temporary reports differ in each country. The meanwhile reports may be short or long depending with the country. The date for file the stave reports excessively vary with the different countries (Pietrobelli, Ffrench-Davis, Zamagni, & Ocampo, 2000).The accountancy of preparing interim reports by the believe brook be traced back to the mid-year of 2002. The quarterly reports started universe in operation with the first quarter of year 2003. The monetary reports are necessity to the researchers and that is why the company requires adequate filing of all financial masterys of the bank (Mcmenamin, 1999). The company maintains timely preparation of its financial reports. It uses weather vane crawler technology to track and update the financial records. The system of preparing financial reports is very functional since it uses PDF format.This computer program allows the documents to be searched easily and can be copied into other documents to a greater extent easily. The size of the PDF documents allows them to be downloaded more easily. The financial reports are presented in full-color indigenous PDF for ease in reading them. The interim reports are easily obtained through the Global Reports Library on Research and Markets (Pietrobelli, Ffrench-Davis, Zamagni, & Ocampo, 2000). The news report policies of the HSBC bank comply with the International monetary Reporting Standards.The interim consolidated financial statements are prepared according to IAS 34, according to International Accounting Standards Board (IASB) and the European Union (EU) (Das, 2004). The bank has aban dod the IAS 32 since March 2009 since this standard required the bank to offer its shareholders rights so that they could be identify as derivative financial financial obligation. This was d one to ensure that the reports presented position of the bank as being true and sporting, too, to ensure that the reports face a true and carnival suck of the as plants, liabilities, financial position and profit or loss of the company (Jao, 2001).The International pecuniary Reporting Standards (IFRSs) endorsed by the IASB may differ with those endorsed by the EU. But recently on that point guard been no amendments on the standards endorsed by IFRS and those endorsed by the EU. The IFRSs make up the standards provided by IASB and the interpretations provided by International pecuniary Reporting Interpretations Committee (IFRIC). The interim consolidated financial statements moldiness include comparative teaching. This is a requirement by the IAS 34, UK Disclosure and transparency Rules and the Hong Kong listing rules (Gianaris, 2001).Estimates and assumptions about the future state of financial affairs are employ when preparing financial information. The estimates are pr epared from the information on hand(predicate) as well as use of judgment of the people preparing them. However, the existing results might be different from the estimates in the future (Pietrobelli, Ffrench-Davis, Zamagni, & Ocampo, 2000). The interim consolidated financial statements of the bank consolidate the financial statements of HSBC Holdings and its subsidiaries. The company adopts the revised and amended standards of IASB and endorsed by the EU.The operation of the revised standards is done as per the attainment date of the business or aft(prenominal) the beginning of the first annual financial period of the year (Pietrobelli, Ffrench-Davis, Zamagni, & Ocampo, 2000). Accounting Policies pursual income and expense- This refers to all financial instruments except for those sort as held for barter or designated at fair value in the income statement using the effective interest method. with the effective interest method, the financial liability is calculated and inter est income is al hardened over the germane(predicate) period (Gianaris, 2001).Non-interest income- This comprises the Net trading income which is quiet of all gains and losses from changes in the fair value of financial assets and financial liabilities held for trading as well as the cogitate interest income, expense and dividends. Net income from financial instruments designated at fair value and dividend income also comprises the non interest income (Jao, 2001). Segment reporting- The HSBC holdings action its businesses in several(prenominal) countries and offer a wide range of consumer products. Segment income and expenses must be transferred accordingly.Gains and losses for each segment must be accounted for separately so as to achieve the profitability of each (Das, 2004). termination of fair value. Fair value of financial liabilities is determined using the quoted market prices where available or using valuation techniques. The fair values include assessment of market par ticipant concerning the appropriate credit mobilize to apply to the liabilities of the company (Gianaris, 2001). Loans and advances to banks and customers- These include loans and advances initiated by HSBC which are not grouped as either held for trading or designated at fair value.Loans and advances are recognise when silver is advanced to borrowers (Gardener, & Versluijs, 2001). Impairment of loans and advances. Losses for impair loans are recognized when there is accusatory evidence that the loans have been impaired. Impaired loans are recorded as charges to the income statement. Losses evaluate from future events are not recognized (Jao, 2001). bodied Governance Analysis The bank has established commitments to maintain high standards of corporate governance. Over the last financial year, the bank has maintained conformation with the Combined scratch on corporate Governance released by the Financial Reporting Council.It has also complied with the inscribe on Corporat e Governance Practices in Appendix 14 to the Rules Governing the listing of Securities on The Stock Exchange of Hong Kong moderate (Pietrobelli, Ffrench-Davis, Zamagni, & Ocampo, 2000). The take awayment of HSBC bank has appointed several committees to deal with several corporate activities of the bank. The card committees consist of directors, group managing directors and co-opted non-director members. The principal committees are Group Management Board, Group analyze Committee, Remuneration Committee, Nomination Committee and Corporate Sustainability Committee (Das, 2004).The directors have the duty to conduct native fit within the bank. They also review how effective the internal control system is operating. Controls have been designed to precaution assets from unauthorized use and disposal. These controls ensure that square-toed financial accounts are maintained and that the financial information contained in the records is reliable. The system of internal control is de signed to prevent frauds, errors, fabric misstatement or losses in the business.The system also ensures compliance with rules set up by the Financial Services Authority, which is the frame which regulates the activities of HSBC (Jao, 2001). in that location are corporate policies to guard duty the bank against operational and Reputational risks. The bank has set up procedures to ensure that the risks are minimized. These risks are concerned with the issues relating to the environment, social and governance activities. The bank follows guidelines provided by the Association of British insurers concerning the outflank response to the issues affecting the company and its stakeholders (Das, 2004).The company aims at managing the risks associated with the health and safety standards of its operations. The bank is responsible to get rid of risks concerning fire, suffering and accidents that may affect its workers and visitors. Group Corporate Real Estate sets up the rules concerning health and safety of the company. The implementation of these policies is done by Health, Safety and Fire Coordinators who are located in every country the bank operates. The bank has remained prepared to protecting its employees from terrorists.There are security review functions which have been set up to assist manage health and safety of the staff, assets and buildings of the company (Gianaris, 2001). The bank maintains a slap-up communication profit with its stakeholders. Individual and institutional customers are on a regular basis apprised about the operations of the bank. by the bye response to the customer needs is given(p) a priority to ensure good relationship is maintained. Annual general meetings are held to ensure that all stakeholders are informed of all activities of the bank over a given period of time (Gardener, & Versluijs, 2001). terminus The general organization of HSBC company stands no doubt that it will remain victorious in the future. The corporate gov ernance ensures that the military mission and vision of the company are achieved. The score policies of the bank are in compliance with the international standards. The accounting policies ensure that the accounting procedures are carried out in a professional manner. The company has performed well in the market and if it continues with these strategies it will achieve much. References Mcmenamin, J, 1999, Financial Management An Introduction.Routledge. London. Pietrobelli, C, Ffrench-Davis, R, Zamagni, S, & Ocampo, J, A, 2000, Financial Globalization and the acclivitous Economies, United Nations. Santiago. Jao, C, Y, 2001, The Asian Financial Crisis and the trial by ordeal of Hong Kong. Quorum Books. Westport, CT. Das, D, K. 2004, Financial Globalization and the Emerging Market Economies. Routledge. clean York. Gianaris, N, V, 2001, Globalization A Financial Approach. Praeger Publishers. Westport, CT. Gardener, E, P, M, & Versluijs, P, C, 2001, Bank Strategies and Challenges in the New Europe. Palgrave. New York.