Type of course

Lecture, main study programme

Lecture notes

>>Slide set 1<<
>>Slide set 2<<
>>Slide set 3<<
>>Slide set 4<<
>>slideset 5<<
>>slide set 6<<
>>slide set 7<<
>>Slide set 8 (additional date IFRS)<<

Event overview

Accounting plays a key role in the bank's operational information system. Its main function is to systematically collect, store and analyse (primarily quantitative) information about the bank's business activities. This information is then used by internal or external parties - the recipients of the accounting system - to support their business decisions.

Part 1: The internal accounting system of banks
In practical bank management today, the concept of profit-orientation, with profitability as the central target figure, has become widely accepted. Within the framework of this profit-orientated business philosophy, margin calculation is of particular importance as a central component of internal company accounting. It should provide decision-makers with decision-relevant and unbiased cost and revenue information at all times.

In the first part of the course, the basic idea of profit-orientated bank management is presented. Based on the interest income statement, the different methods of margin calculation for the so-called value area will be presented. After a critical examination of the traditional methods (pool method and stratified balance sheet method), the focus is placed on the modern procedure of the market interest rate method.

Part 2: The external accounting of banks
Due to the special macroeconomic importance of the banking sector, the external accounting of banks is characterised by a degree of regulation that clearly exceeds that of other sectors. In-depth knowledge of the relevant accounting standards is not only of great importance for bank managers and securities analysts. It is also virtually impossible for representatives of other stakeholder groups, such as shareholders, creditors or "the public" in general, to assess the economic situation of a bank without solid knowledge of the principles of bank accounting.

The second part of the event will therefore deal in detail with bank accounting issues. One focus here is on the presentation of national commercial law and bank-specific accounting and valuation regulations. In order to take account of the increasing importance of international accounting standards for German banks, the special features of bank accounting under IFRS will also be discussed. The focus here is on issues relating to the recognition and measurement of financial instruments in accordance with IAS 32/39 and IFRS 7 as well as the regulations on hedge accounting in accordance with IAS 39.

Recommended reading

Part 1: The internal accounting of banks

Schierenbeck, H.: Ertragsorientiertes Bankmanagement: Band 1: Grundlagen, Marktzinsmethode und Rentabilitäts-Controlling, 8th edition, Wiesbaden 2003

Hartmann-Wendels, Th./Pfingsten, A./Weber, M.: Bankbetriebslehre, 3rd edition, Berlin, Heidelberg 2004

Büschgen, H.E.: Bankbetriebslehre: Bankgeschäfte und Bankmanagement, 5th edition, Wiesbaden 1998

Part 2: The external accounting of banks

IAS 30, 32 and 39 as well as IFRS 7 (Download the versions applicable in the EU: ec.europa.eu/internal_market/accounting/ias_en.htm#adopted-commission)

Hartmann-Wendels, Th./Pfingsten, A./Weber, M.: Bankbetriebslehre, 3rd edition, Berlin, Heidelberg 2004

IDW RS HFA 9: Individual questions on accounting for financial instruments in accordance with IFRS, WPg 2006, p. 537 ff.

Löw, E.: Accounting for banks in accordance with IFRS, 2nd edition, Wiesbaden 2005

Bieg, H.: Die externe Rechnungslegung der Kreditinstitute und Finanzdienstleistungsinstitute, Munich 1998

Obst, G./Hintner, O.: Geld-, Bank- und Börsenwesen, 40th edition, Stuttgart 2000

Schierenbeck, H./Hölscher, R.: BankAssurance, 4th edition, Stuttgart 1998