Parliamentary Commission on Banking Standards and Profit and Loss account: Difference between pages

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(Attach PCBS's final report Volume 1 as download.)
 
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m (Categorise.)
 
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(PCBS).
(P&L or PL or PNL).


1.


The Parliamentary Commission on Banking Standards was established by the UK Parliament in 2012 to:
Historically, a primary financial statement – showing the revenues earned in a period matched with the expenditures incurred in the same period to arrive at a figure of net profit or loss.


'''A.'''
Under the 'double entry' accounting convention, income items in the Profit and loss account are Credits (CR) and expenses are Debits (DR).


Consider and report on:
A net profit is a Credit in the Profit and loss account.


1. Professional standards and culture in the UK banking sector, taking account of regulatory and competition investigations into the LIBOR rate-setting scandal.
A net loss is a Debit in the Profit and loss account.


2. Lessons to be learned about:


2.1. Corporate governance.
Under International Accounting Standards the profit and loss account is superseded by the Statement of profit or loss and other comprehensive income.


2.2. Transparency.


2.3. Conflicts of interest.
2.  


2.4. Their implications for regulation and for UK Government policy.
Historically, another name for the Profit and Loss reserve in the balance sheet.


Net profits or losses <u>for the period</u> in the Profit and loss account feed through in turn to the Shareholders' funds (<u>cumulative</u> retained profits or losses) in the 'bottom half' - reserves section - of the Balance sheet (as <u>at the end of the period</u>).


'''B.'''


Make recommendations for legislative and other action.
== See also ==
* [[Accruals concept]]
* [[Attributable profit]]
* [[Balance sheet]]
* [[Cashflow statement]]
* [[Credit balance]]
* [[Debit balance]]
* [[Financial statements]]
* [[Income statement]]
* [[International Accounting Standards]]
* [[Loss]]
* [[Profit]]
* [[Profit and Loss reserve]]
* [[Statement of profit or loss and other comprehensive income]]


The Commission's 2013 report proposes:
[[Category:Accounting,_tax_and_regulation]]
 
(1) Making the individual responsibility of senior bankers a reality.
 
(2) Reinforcing each bank's own responsibility for its own soundness and the maintenance of its standards.
 
(3) Creating better functioning and more diverse banking markets.
 
(4) Reinforcing regulators's responsibility to exercise judgement in deploying their powers.
 
(5) Specifying the responsibilities of the UK Government.
 
 
The Commission's report setting out its conclusions and recommendations can be downloaded here:
[[Media:PCBS_report_June_2013.pdf‎ PCBS final report June 2013]]
 
 
==External links==
*[http://www.parliament.uk/bankingstandards UK Parliament: PCBS]
 
[[Category:Regulation_and_Law]]
[[Category:Control_and_Reporting]]
[[Category:Policy_and_Objectives]]
[[Category:The_Treasury_Professional]]

Revision as of 11:38, 21 February 2018

(P&L or PL or PNL).

1.

Historically, a primary financial statement – showing the revenues earned in a period matched with the expenditures incurred in the same period to arrive at a figure of net profit or loss.

Under the 'double entry' accounting convention, income items in the Profit and loss account are Credits (CR) and expenses are Debits (DR).

A net profit is a Credit in the Profit and loss account.

A net loss is a Debit in the Profit and loss account.


Under International Accounting Standards the profit and loss account is superseded by the Statement of profit or loss and other comprehensive income.


2.

Historically, another name for the Profit and Loss reserve in the balance sheet.

Net profits or losses for the period in the Profit and loss account feed through in turn to the Shareholders' funds (cumulative retained profits or losses) in the 'bottom half' - reserves section - of the Balance sheet (as at the end of the period).


See also

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