Bank Accounting Course

Lesson 1 • Nature of Banking Financial Operations

Defines the bank as a financial intermediary and its balance sheet structure. Grounds all subsequent accounting treatment in the bank's core business model.

Lesson 2 • Regulatory Framework and Reporting Standards

Surveys prudential and financial reporting standards governing bank accounts. Students connect accounting choices to supervisory compliance requirements.

Lesson 3 • Chart of Accounts for Banks

Maps the standardized account categories used in bank bookkeeping. Provides the structural vocabulary needed for all journal entry work ahead.

Lesson 1 • Types of Deposit Products

Classifies demand, savings, and time deposits by contractual features. Establishes the accounting treatment differences driven by product terms.

Lesson 2 • Deposit Maturity and Rollover Accounting

Handles maturity settlements, early withdrawals, and rollovers for time deposits. Ensures correct derecognition and re-recognition at each event.

Lesson 3 • Interest Accrual on Deposits

Calculates and records interest expense on deposit liabilities using effective interest method. Connects accrual timing to period-end financial statements.

Lesson 4 • Deposit Insurance and Reserve Requirements

Records mandatory reserve placements and deposit insurance premium expenses. Ties these obligations to the bank's liquidity and compliance reporting.

Lesson 1 • Interest Income Recognition on Loans

Applies the effective interest method to recognize loan interest over the loan term. Distinguishes accrual-basis income from cash receipts.

Lesson 2 • Loan Classification and Risk Grading

Assigns risk grades to loans based on borrower creditworthiness and payment history. Feeds classification results into the impairment estimation process.

Lesson 3 • Loan Write-Offs and Recoveries

Records the removal of uncollectible loans from the balance sheet and subsequent cash recoveries. Maintains integrity of the allowance account through each event.

Lesson 4 • Loan Restructuring and Modifications

Accounts for troubled debt restructurings and contractual modifications. Determines whether a modification is a new loan or a continuation of the original.

Lesson 5 • Loan Origination and Initial Measurement

Captures origination fees, direct costs, and initial fair value of loans. Establishes the carrying amount basis for all subsequent measurement.

Lesson 1 • Initial Recognition and Measurement

Records securities at fair value on trade date or settlement date. Captures transaction costs based on the applicable classification category.

Lesson 2 • Disposal and Derecognition of Securities

Calculates realized gains and losses on security sales and records derecognition entries. Recycles accumulated other comprehensive income into profit or loss on disposal.

Lesson 3 • Subsequent Measurement and Fair Value

Applies amortized cost and fair value measurement at each reporting date. Routes unrealized gains and losses to the correct financial statement component.

Lesson 4 • Impairment of Debt Securities

Identifies credit-related impairment on debt securities and separates it from market-driven fair value changes. Records allowances and impairment losses correctly.

Lesson 1 • Trade Finance Facilities and Guarantees

Accounts for bank guarantees, standby letters of credit, and trade finance credit lines. Distinguishes financial guarantee contracts from insurance contracts.

Lesson 2 • Foreign Currency Transaction Basics

Records monetary and non-monetary items denominated in foreign currencies at spot rates. Establishes the retranslation requirement at each reporting date.

Lesson 3 • Letters of Credit and Documentary Collections

Records contingent liabilities and fee income for letters of credit and documentary collections. Tracks off-balance-sheet exposures through to settlement.

Lesson 4 • Exchange Differences and Retranslation

Calculates and records exchange gains and losses on monetary items at period end. Routes differences to profit or loss or other comprehensive income as required.

Lesson 1 • Hedge Accounting Disclosures

Prepares quantitative and qualitative disclosures required for hedging relationships. Communicates risk management strategy and hedge effectiveness outcomes.

Lesson 2 • Fair Value Measurement of Derivatives

Values derivatives at fair value through profit or loss at each reporting date. Applies valuation techniques when quoted market prices are unavailable.

Lesson 3 • Fair Value Hedge Accounting

Designates and documents fair value hedges of fixed-rate assets and liabilities. Records offsetting fair value changes in the hedged item and hedging instrument.

Lesson 4 • Introduction to Bank Derivative Instruments

Identifies interest rate swaps, currency forwards, options, and futures used by banks. Links each instrument type to its accounting classification and measurement basis.

Lesson 1 • Income Statement and Net Interest Margin

Constructs the bank income statement from interest income through net profit. Calculates net interest margin as a key performance indicator.

Lesson 2 • Statement of Financial Position for Banks

Structures the bank balance sheet with proper asset and liability ordering. Applies bank-specific line items including loans, deposits, and regulatory capital.

Lesson 3 • Cash Flow Statement for Banks

Classifies bank cash flows under operating, investing, and financing activities. Addresses the unique treatment of loans originated and deposits received.

Lesson 4 • Statement of Changes in Equity

Tracks movements in share capital, retained earnings, and other comprehensive income reserves. Reconciles opening and closing equity balances for each component.

Lesson 1 • Capital Adequacy Ratio Reporting

Computes and reports capital adequacy ratios to supervisory authorities. Identifies breaches and triggers for supervisory intervention.

Lesson 2 • Reconciliation of Regulatory and Financial Reports

Bridges differences between prudential returns and audited financial statements. Produces a documented reconciliation trail for supervisory review.

Lesson 3 • Liquidity Regulatory Reporting

Prepares liquidity coverage ratio and net stable funding ratio reports. Links balance sheet data to liquidity stress scenario assumptions.

Lesson 4 • Prudential Capital Framework Overview

Explains Tier 1 and Tier 2 capital components and minimum ratio requirements. Connects accounting equity to regulatory capital through prescribed adjustments.