Fundamentals of accounting for banks

Groupe cible

The training course can be followed by various target groups:

• all employees who need to understand and/or apply the rules of bank accounting or the specific regulations for their 'product' in their role;
• employees who wish to follow a specialized training in bank accounting in addition to a classical accounting education;
• bank auditors and their staff
• …

Connaissances préalables

Advanced level training: this training requires a general basic knowledge of the subject.

Programme

CONTENT

DAY 1

• FUNDAMENTALS OF ACCOUNTING
  • What is accounting? Purpose/definition and meaning
  • BeGAAP accounting standards and main principles
  • IFRS accounting standards (International, main principles, basis of comparability)
  • Users of Financial Statements
  • Elements of accounting: assets, liabilities, and capital, revenues and expenses
  • Off-balance transactions, contingent assets and liabilities
  • The key elements of the accounting equation (total assets = total liabilities + equity)
  • The double entry accounting system (debet = credit)
  • The accounting cycle
  • Specific accounting technics. (depreciations, provisions, suspense accounts, closing bookings…)
• THE FINANCIAL STATEMENTS
  • Examples of Banks balance sheet (BeGAAP Schema B + IFRS)
  • Explain specificities and differences vs other industries
  • Balance Sheet (also known as a Statement of Financial Position, or a Statement of Financial Condition).
  • Income Statement (Statement of Profit and Loss, Statement of Earnings)
  • Statement of other comprehensive income
  • Cash Flow Statement
  • Case studies
• RISKS IN ACCOUNTING
  • What is management accounting? Management versus financial accounting (brief introduction)
  • Risks in Accounting - revenue recognition, transaction errors, fraud, cut off issues, … & Internal control objectives (link the risk to the internal control)
  • Risk Management in Accounting
  • Main area of focus of Internal audit – Key internal control focus in banking

DAY 2

• DETAILED UNDERSTANDING OF A BANKS BALANCE SHEET AND INCOME STATEMENT (P&L) AND FINANCIAL RATIOS UNDER DIFFERENT ACCOUNTING STANDARDS
  • Balance Sheet (also known as a Statement of Financial Position, or a Statement of Financial Condition) – zoom on different captions
    • Cash – Nostro/Vostro
    • Mortgage loans & Doubtful debtors
    • Investment portfolio (liquidity)
    • Accruals
    • Deposits to clients
    • Provisions
    • Equity
  • Income Statement (Statement of Profit and Loss, Statement of Earnings) – zoom on different captions
    • Net interest income
    • Net fee income
    • Net banking income
    • Operational expenses
    • Taxes
  • Explain specificities and differences vs other industries
    • BeGAAP-IFRS differences
    • Key financial performance metrics and ratios
    • RoE
    • RoA
    • CoR
    • CiR
    • Case studies
• PERFORMANCE MANAGEMENT AND CONTROL SYSTEMS
  • What is management accounting. Management versus financial accounting (zoom)
  • Cost concepts and classifications
  • Cost behavior and analysis
  • Profitability (product, client, segment…) analysis
  • Financial Ratio Analysis
  • Risk based pricing (for banking products), client, product, project

PRACTICAL INFORMATION

• Duration: 2 days of training (6 class hours per day)
• Hours: 09:00 to 17:00
• Location: Febelfin Academy: Phoenix building, Koning Albert II-laan/Boulevard du Roi Albert II 19, 1210 Brussels
• Language: This training will be given in English
• Additional information: The training program is designed to evolve from basic to advanced levels. On the first day, we begin with the fundamentals of bank accounting, providing a solid foundation. On the second day, we delve into more specific and advanced topics. You have the flexibility to register for both training days or choose to register for just one, depending on your needs.
• Modular price per day:
  • Members: € 550
  • Non-members: € 650
  • Partners/ BZB: € 550
  • Incompany: tailor-made, prices on request

Méthodologie

You follow a ‘Classroom training’ in a group. You, the other participants and the teacher are all present in the same classroom at an agreed time. There is an opportunity for interaction and feedback, both from the participants to the teacher and vice versa. The teaching material consists as a basis of a presentation via the MyFA learning platform, supplemented with various other items (such as digital syllabus, presentation, audiovisual fragments, etc.).

Training material: PowerPoint presentation and additional material