Q1. Accounting in the financial institutions has special characteristics compared to the non-financial institutions, discuss this statement...

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Accounting

Q1. Accounting in the financial institutions has specialcharacteristics compared to the non-financial institutions, discussthis statement and explain characteristics of balance sheets,income statement and cash flow statement in banks.

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Solution Accounting in the financial institutions has special characteristics compared to the nonfinancial institutions discuss this statement Bank acts as an intermediary between two parties The job of a bank is to assist the company which it can help Bank makes profits from the spread between the rate it receives and the rate it pays On the other hand a company operates to produce goods or services and ultimately sell these goods or services to another business end customer or to Government The objective of running a regular company is to generate and maximise wealth for its shareholders Particulars Bank NBFC Defination Bank balance sheet is prepared as per the mandate by the regulatory authorities Companys balance sheet is prepared as per the regulation of international accounting standards board IASB See Answer

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