Corporate Financial Reporting

Project Presentation
 Mates
• Mubariz Ali Khan (0013)
• Bilal Arif (0062)
• M. Hamza (0056)
• Shehzad Ali (0054)
 International Accounting Standards

International accounting standards are a set of internationally-agreed principles and

procedures relating to the way that companies present their accounts.

The purpose of these standards is to ensure that the financial centers of the world, which have
become more interconnected than ever, can use a global financial reporting framework that
ensures effective regulation of financial markets.
IAS 1 Presentation of Financial Statements

IAS 2 Inventories
Consolidated Financial Statements
IAS 3 Superseded in 1989 by IAS 27 and IAS 28
Depreciation Accounting
IAS 4 Withdrawn in 1999
Information to Be Disclosed in Financial Statements
IAS 5 Superseded by IAS 1 effective 1 July 1998

Accounting Responses to Changing Prices

IAS 6 Superseded by IAS 15, which was withdrawn December 2003

IAS 7 Statement of Cash Flows

IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

Accounting for Research and Development Activities

IAS 9 Superseded by IAS 38 effective 1 July 1999

IAS 10 Events After the Reporting Period

 International Financial Reporting Standards
International Financial Reporting Standards (IFRS) set common rules so that financial
statements can be dependable, clear and comparable around the world. IFRS are issued by the
International Accounting Standards Board (IASB).

They specify how companies must maintain and report their accounts, defining types of
transactions and other events with financial impact.

IFRS were established to create a common accounting language, so that businesses and their
financial statements can be dependable and reliable from company to company and country to
country.
 Here are some International Financial Reporting
Standards
IFRS 1 First-time Adoption of International Financial Reporting Standards
IFRS 2 Share-based Payment
IFRS 3 Business Combinations
IFRS 4 Insurance Contracts
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
IFRS 6 Exploration for and Evaluation of Mineral Resources
IFRS 7 Financial Instruments: Disclosures
IFRS 8 Operating Segments
IFRS 9 Financial Instruments
IFRS 10 Consolidated Financial Statements
IFRS 11 Joint Arrangements
Bank AL Falah
 Company Profile
Bank Alfalah is the fifth largest private Bank in Pakistan with a network of over 600
branches in more than 200 cities across Pakistan with an international being there in
Bangladesh, Afghanistan, Bahrain and a representative office in the UAE. The Bank
is owned and operated by the Abu Dhabi Group.
 Vision & Mission Statement
Vision
To inspire and empower people to do things differently and shape their own path in life and
business.
 

Mission
We look at the market with fresh eyes to find new opportunities and seek new ways of
supporting our customers to succeed and advance the world of finance.
 SWOT Analysis

Strengths
The core strength of Bank Alfalah is in providing Halal banking services. Halal is Arabic for, "that which
is permissible"; Halal banking follows traditional Muslim laws. With a strong market in middle eastern
countries. Their position in the oil rich middle east gives them a strong home market.

Weaknesses
Bank Alfalah's adherence to Halal standards may be a strength in some markets, but it is a weakness in the
west that makes moving outside of its home region market difficult. Specifically, adhering to Halal
standards means that Bank Alfalah cannot offer the same range of products as conventional banks.
 SWOT Analysis
Opportunities
With the growth of Islam in the western world, Bank Alfalah has the opportunity to expand beyond the
middle east and into markets in the United States and Europe in order to offer Halal banking services.

Threats
The main threat to Bank Alfalah is the threat posed by western banks who are able to engage in less
restrictive sources of revenue generating. Bank Alfalah freely admits that they do not offer the full range of
products of conventional western banks.
 Company Profile
National Bank of Pakistan (NBP) is the second-largest commercial bank in Pakistan, with market shares of
13% in terms of total deposits and 12% in terms of total loans as of 30 September 2017. As of 31
December 2017, it reported total consolidated assets of PKR2.4 trillion ($21.4 billion).

NBP was established in November 1949 under the National Bank of Pakistan Ordinance 1949. Its shares
are listed on the Pakistan Stock Exchange (formerly known as the Karachi Stock Exchange; stock code,
NBP). As of 31 December 2017, the Government of Pakistan, via the State Bank of Pakistan (SBP), owned
a combined stake of 75.6% of its total share capital
 Vision & Mission Statement
Mission
NBP will aspire to the values that make NBP truly the global Bank, by: Institutionalizing a merit and
performance culture. Creating a distinctive brand by providing the highest standards of services. Adopting
the best international management practices.

Vision
To be recognized as a leader and a brand synonymous with Trust, highest standards of service quality,
international best practices and social responsibility.
 SWOT Analysis
Strengths
 Custodian of Govt
 Agent of State Bank Weaknesses
 Western union facility  Poor Dealing
 Vast Network  Lack of Computerized Network
 Job Security  Political pressure
 Customer Satisfaction:  Lack of online Branches
 Online Banking:  Lack of Advertisement of Product
 Highest Rating and Receive awarded  Lack of IT infrastructure
   Favoritism
 Decision making
 SWOT Analysis
Opportunities
 Growing Banking System
 Trust Due to Govt Bank
 Economic Activities Threats
 Electronic Banking  Number of Commercial Bank
 Marketing Plan  Competition with other Banks
 Increase Business  Political Influence
   Customer Satisfaction
 High Interest Rates
 Comparison between foreign and domestic
banks

The key difference between foreign and domestic bank is their accounting
policies and ease of accounting. Foreign banks always follow the instructions of
IASB and works according to it while domestic banks follows bank ordinance
in their country, even if it is not applicable now and that’s why foreign banks are
more accurate and better for working than domestic.
 Conclusion

We conclude that the Alfalah bank is much good and accurate then National Bank because
Alfalah bank is an international Bank and follows all the international standards including
international financial reporting standards while National Bank of Pakistan is not following all
the international accounting standards and does not operate as accurate as Alfalah do.