PRA buffer and Primary financial statements: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Update.)
 
imported>Doug Williamson
(Standardise heading.)
 
Line 1: Line 1:
''Capital adequacy - UK''.
''Financial reporting''  


The PRA capital buffer is designed to absorb potential losses under stress.
Under International Accounting Standards (IAS) 'primary' financial statements are the main accounting statements that must be presented.  


These are:


The PRA buffer is designed to be adequate to absorb losses that may arise under a 'severe, but plausible' stress, in line with the CRD IV rules.
* Statement of financial position (balance sheet).
* Income statement (profit or loss account), which can be included in the statement of comprehensive income.
* Statement of comprehensive income.
* Statement of changes in equity.
* Statement of cash flows.




The amount is determined by the regulator, the Prudential Regulation Authority (PRA), following stress testing and consultation with the regulated bank.
The primary statements are supported by Notes to the accounts, providing additional and more detailed financial information.




Any PRA buffer which the regulator may set is additional to Individual Capital Guidance (ICG).
==See also==
* [[Income statement]]
* [[International Accounting Standards]]
* [[Notes]]
* [[Statement of cash flows]]
* [[Statement of changes in equity]]
* [[Statement of comprehensive income]]
* [[Statement of financial position]]
* [[Statement of profit or loss and other comprehensive income]]


 
[[Category:Accounting,_tax_and_regulation]]
In addition, where the PRA assesses a firm’s risk management and governance to be significantly weak, it may also set the PRA buffer to cover the risk posed by those weaknesses until they are addressed.
[[Category:Compliance_and_audit]]
 
 
The PRA buffer is sometimes known as the 'Pillar 2B' buffer.
 
The PRA buffer replaced the former 'capital planning buffer'.
 
 
== See also ==
* [[Buffer]]
* [[Capital adequacy]]
* [[CRD IV]]
* [[Governance]]
* [[Idiosyncratic stress]]
* [[Individual Capital Guidance]]
* [[Pillar 2]]
* [[Prudential Regulation Authority]]
* [[Reverse stress test]]
* [[Risk management]]
* [[Scenario analysis]]
* [[Shock]]
* [[Stress]]

Revision as of 13:02, 21 May 2017

Financial reporting

Under International Accounting Standards (IAS) 'primary' financial statements are the main accounting statements that must be presented.

These are:

  • Statement of financial position (balance sheet).
  • Income statement (profit or loss account), which can be included in the statement of comprehensive income.
  • Statement of comprehensive income.
  • Statement of changes in equity.
  • Statement of cash flows.


The primary statements are supported by Notes to the accounts, providing additional and more detailed financial information.


See also

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=PRA_buffer&oldid=38237’