I’m stuck on a Accounting question and need an explanation.
1-Describe the followings in your own words:
AWhat is Fair Value Accounting?
BWhat Is Fair Market Value Accounting? How the FASB is going to standardize the calculation of financial instruments by looking at their historical cost?
2- What do you mean by loan loss provision? Why Does a Loan Loss Provision Matter? Andhow does a loan loss provision work?
3- How to differentiate liquid risk and Credit Risk with reference to the financial economics sector and how the interest rate risk make an impact on the economy?
4- contrast fair value method vs amortized cost method and explain how they are working?
5-discuss the recent trends in the banking industry?
6-Banks are working with higher financial leverage, discuss this statement explaining how is capital adequacy ratio being calculated in Saudi banks?