Accounting and auditing of financial institutions

Syllabus

1. Legislative framework for the regulation of financial institutions in the Slovak Republic and the EU. Regulatory requirements and system of administration and management of the banking and insurance sector in the EU (Basel III, Solvency II). Requirements for reporting this information in the financial statements of banks and insurance companies. 2. Characteristics and basic requirements for the content structure of financial reports prepared by banks and insurance companies (statements, reports and reports submitted to the NBS, audited financial statements). Annual report from the point of view of both the creator and the user. 3. Financial instruments (FN) issued or acquired by financial institutions. Investment opportunities and methods of valuation of FN, methods and techniques of valuing assets and liabilities, accounting, reporting of FN, requirements for disclosure of information about risks associated with the investment strategy. 4. Characteristics and breakdown of the bank's equity, requirements for the creation of equity. Defining the share capital, additional capital and additional capital of the bank. Equity functions and basic principles of bank activities. 5. Possibilities and methods of implementation of active banking operations of the NBS, foreign issuing banks, banks, clients. Adjustment of provisioning for active banking operations depending on the entities to which funds are provided in the form of loans. 6. Characteristics of bank activities. Possibilities and methods of implementing passive banking operations from the NBS, foreign issuing banks, banks, clients. Client deposit protection. Contractual requirements for passive banking operations. 7. Insurance contract according to IFRS 4 (IFRS 17) present and future. Settlement relationships with clients, intermediaries and reinsurers arising from insurance and reinsurance activities. Possibilities and forms of insurance and financial risk diversification. 8. Investment policy of the insurance company. Methods and possibilities of financial placement of technical provisions in the insurance company. Valuation, accounting and reporting of financial assets in the financial statements of the insurance company. Global trends in financial market investment. 9. Capital structure (equity) of the insurance company and its dividend policy. Calculation of the Solvency Capital Requirement and demonstration of capital adequacy. Structure of long-term liabilities with an emphasis on technical provisions created to cover future liabilities from insurance and reinsurance activities. 10. Structure of costs and revenues arising from insurance, reinsurance and other activities of the insurance company. Structure of profit or loss and presentation of this information in the financial statements. Financial analysis. 11. The role and organization of internal control and internal audit in financial institutions. Internal audit function as one of the key functions of the administration and management system. 12. Legal regulation, tasks and strategy of statutory audit in banks. 13. Legal regulation, tasks and strategy of statutory audit in insurance companies.