A Project Report On European Financial Institutions Group & International Financial Reporting Systems

Submitted To:Dr. Shantanu Mehta

Submitted By:Dharmesh Patel Roll No:-30 St. Kabir Institute of Professional Studies

Table of Contents
1. 2. 3. 4. Acknowledgement:- ........................................................................................................................ 4 Preface:- .......................................................................................................................................... 5 Executive Summary ......................................................................................................................... 6 About SNL Financial:- ...................................................................................................................... 7 SNLs Four Core Tenets:- ..................................................................................................................... 8 5. Current Industry Coverage by SNL Financial:- ................................................................................ 9 5.1 SNL Financial Institutions:- ............................................................................................................ 9 a. b. c. SNL Financial for Banks & Thrifts:- .............................................................................................. 9 SNL Insurance:- ............................................................................................................................ 10 SNL Financial Services:- .............................................................................................................. 11 5.2. SNL Real Estate:- ........................................................................................................................ 12 5.3. SNL Energy:- ............................................................................................................................... 13 a. b. c. SNL Energy for Electric Power:- .................................................................................................. 13 SNL Energy for Natural Gas:- ...................................................................................................... 14 SNL Energy for Coal:- .................................................................................................................. 15 5.4. SNL Media & Communications:- ............................................................................................... 16 5.5. Euro Financial Institutions Group (EFIG):-.................................................................................. 17 6. 7. 8. Different Products of SNL:- ........................................................................................................... 23 Different Solutions Provided By SNL:-........................................................................................... 24 International Financial Reporting Standards (IFRS) ...................................................................... 25 8.1 What is IFRS?............................................................................................................................... 25 8.2 How widespread is the adoption of IFRS around the world? ..................................................... 25 8.3 Advantages of converting to IFRS:- ............................................................................................. 25 8.4 Disadvantages of converting to IFRS:- ........................................................................................ 25 9. Different Standard of IFRS:- .......................................................................................................... 26 IFRS 1--FIRST-TIME ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS:- ........... 26 IFRS 2--SHARE-BASED PAYMENT:- .................................................................................................... 27 IFRS 3 --BUSINESS COMBINATIONS:- ................................................................................................ 28 IFRS 4 --INSURANCE CONTRACTS:- ................................................................................................... 29 IFRS 5 --NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS:- .................... 30 IFRS 6 ----- EXPLORATION FOR AND EVALUATION OF MINERAL RESOURCES:- ................................ 32 IFRS 7 ----- FINANCIAL INSTRUMENTS-DISCLOSURES:- ..................................................................... 33 SKIPS Page 2

IFRS 8 --OPERATING SEGMENTS:- ..................................................................................................... 37 IFRS 9 --Financial Instruments:- ........................................................................................................ 38 10. 11. 12. Balance Sheet Reporting of IFRS:-............................................................................................. 39 Learning and Experience ........................................................................................................... 40 Bibliography .............................................................................................................................. 41

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1. Acknowledgement:To acknowledgement is a way of showing your gratitude towards persons who have contributed to your success in one or other way. I take this opportunity to express our heartfelt gratitude to one and all that have helped us make this project a reality. It not just gives one the opportunity to learn things first hand, but also a chance to experience and apply the theoretical knowledge one acquires through the PGDM course. I would like to thank our director Dr. Shantanu Mehta for his valuable support and cooperation. I am thankful to my project guide Dr. Shantanu Mehta who has given us support and guidance throughout the project. I would like to thank all the faculty members of St. Kabir Institute of Professional Studies who have encouraged me and helped me in carrying out this project in other way. Last but not the least; I give my sincere thanks to my friends and family members for their support and encouragement.

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2. Preface:THE MAN WHO HAS NO IMAGINATION HAS NO WINGS

Human being enters the world with a raw brain and mind. Until he works out with his imagination, he cannot reach the soaring heights of success. Study of management will be worthwhile only if it is coupled with the practical studies and imagination power. Practical training, which is a part of management studies intends to provide a student with sufficient knowledge to develop an equation to connect theory and practical aspects and thereby gives an opportunity to test and verify application of theory and comprehends interaction between management concepts and practice. As a partial fulfilment of the Course PGDM, the students are required to undertake a project that would help them to enhance their knowledge. As part of my PGDM course I have to undergo this Capstone Project. It is with great sincerity and enthusiasm that I take up the challenge that this field has placed before me and hope to succeed with guidance from my professors and company guide.

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3. Executive Summary
The new millennium has thrown open new prospects of growth and economic development. Financial Reforms and opening of the Economy to Foreign Forces have thrown up new challenges and opportunities. New economy stocks of knowledge based industries and services have shot into prominence. This Project Include the details about SNL financial, Its current Industry Coverage, Companys different departments in detail, Details about the department in which currently I am working, Different products of the company, Different solutions provided by the company to their clients and different International Financial Reporting Standards. The project starts with the introduction of the SNL Financial. It gives the reader insight into the history of company and present status of the company. In addition to this, it also gives a brief view of business model and core tenets of the SNL Financial. The next section describes detail about the current industry coverage by SNL Financial. How many sectors they covers overall and what are their products & services for their clients in the respective sectors are covered in this section. In the next section I covered the details about the department in which I am working in. This department is European Financial Institutions Group (EFIG). I covered the all details from the beginning till present. In the last section I focused on the International Financial reporting Standards .I covered the different IFRS standards and explain them in details and Importance of implementing these IFRS standards.

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4. About SNL Financial:SNL Financial is the premier provider of breaking news, financial data and expert analysis on business sectors critical to the global economy: Banking, Insurance, Financial Services, Real Estate, Energy and Media & Communications. SNL's information service provides investment professionals, from leading Wall Street institutions to top corporate management, with access to an in-depth electronic database, available online and updated 24/7.

SNL Financial collects, standardizes and disseminates all relevant corporate, financial, market and M&A data plus news and analysis for the industries they cover: banking, financial services, insurance, real estate, energy and media/communications. SNL Financial was originally founded as "S&L Securities" in New Jersey in 1987 with an initial focus on the savings and loan industry. But state law would not permit the incorporation of a non-bank with "S&L" in the official company name. So they replaced the "&" with an "N" to create "SNL." And their universe soon expanded overll beyond savings & loans to the various business sectors they cover today.

Since their founding, SNL has continuously expanded their global operations, as well as the scope and depth of their coverage and products all without compromising the standards of quality and customer service that drive their success. Throughout their organization, SNL has infused 4 core tenets -- Accuracy, Relevance, Completeness and Timeliness -- and they stand behind our published information with a unique Accuracy Guarantee.

As a result, leading investment banks, investment managers, corporate executives, ratings agencies, government agencies, consulting firms, law firms and media such as The New York Times, The Wall Street Journal, USA Today, Washington Post, Forbes and Fortune rely on SNL Financial for the best possible information on the companies in their sectors.

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SNLs Four Core Tenets:-

1. Accuracy: Information you can trust, and we guarantee it

SNL news and data are compiled by trained sector experts, and carefully checked and rechecked before publication. We are so confident in our accuracy that we put our money where our mouth is. Were the only information provider with an accuracy guarantee: we pay clients $50 (or make an equivalent charitable donation) for each error found and reported to us.

2. Relevance: Sector-specific standardization and granularity

One financial format doesnt fit all, so SNL creates a unique data template for each sector. We standardize and analyze data in an industrys own language, formats and fields. The result: a more relevant picture, providing sector-specific metrics that are more meaningful, and the ability to make apples-to-apples comparisons.

3. Completeness: The deepest and broadest spectrum of information

SNL has built a platform and process to deep dive into business sectors with fragmented data sources, unique metrics and/or regulatory reporting requirements. We have developed proprietary techniques to locate information that is otherwise difficult or even impossible to find. No source is more complete, from asset-level data to M&A history to ownership insights.

4. Timeliness: the latest news and data, linked and updated in real time
SNL integrates news, data and analytics in real time, all updated 24/7 and provided to clients long before comparable but less complete information is available from other sources. Everything is cross-linked for easy drill-down. Go from an analytical report directly to a companys financial profile or news article. Tie any Excel spreadsheet to the SNL database for instant updating.

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5. Current Industry Coverage by SNL Financial:Financial Institution Banks and Thrifts Insurance Financial Technology

Energy Power Gas Coal

Real Estate REITs Homebuilders Gaming/Lodging

Media & Communication Media Communication

European FIG

5.1 SNL Financial Institutions:SNL's database includes detailed profiles on more than 20,000 U.S. financial institutions, including all publicly-traded banks & thrifts, privately-held institutions and credit unions. 100% of investments banks with any substantive industry practice are SNL subscribers, as are the largest commercial banks, top equity research analysts, leading M&A advisors, and more than 600 asset managers, hedge funds and private equity firms.

a. SNL Financial for Banks & Thrifts:For more than 20 years, SNL has been recognized as the gold standard for banking data, news and insight. Clients ranging from de novo banks to super-regional institutions use SNL on a daily basis to make important strategic decisions. SNL's leadership in the sector comes not only from the quality and timeliness of our data, but from our interactive platform that makes the data so easy to use.

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Coverage and clients:SNL's database includes detailed profiles on more than 20,000 U.S. financial institutions, including all publicly-traded banks and thrifts, privately held institutions and credit unions. SNL is the trusted information partner for 49 of the 50 largest commercial banks in the U.S. as well as hundreds of regional and community banks. 100% of the investment banks with any substantive financial institution industry practice are SNL subscribers.

The most comprehensive banking data is also the easiest to use:Nobody drills down like SNL. And nobody makes drilling down easier. SNL's in-depth data, news and analytics are all cross-linked for rapid access and manipulation. Quickly make peer comparisons based on industry-specific benchmarks such as asset quality or capital. Access comprehensive company data related to corporate governance, institutional ownership and corporate subsidiaries. See snapshots of SEC filings and financial trends, M&A activity and market share. Stay up-to-date on company and industry information via our exclusive news articles, "Data Dispatches," CEO interviews and research. Use our Excel add-in to download almost 15,000 bank-related fields.

More timely data with guaranteed accuracy:SNL goes to the market faster with accurate data than any other provider. We publish SEC filings within 8 hours of release, regulatory data within 48 hours and FDIC Branch Deposit data within 72 hours. For the top 100 publicly-traded banks, we typically publish financial data within 1 hour of the earnings release. You can have complete confidence in our data because we guarantee accuracy and pay cash rewards to any client finding an error.

b. SNL Insurance:With SNL, you can access insurance information like never before. Evaluate every U.S. insurance company, public and private, from every possible angle. In one complete package, get easy access to various financial reports and metrics for Property & Casualty companies, Life, Accident & Health companies, Life Separate Account statements and Health firms.

SNL puts the whirlwind of insurance information under your control:SNL brings you easy access, order and transparency. SEC Filings. Statutory Data. M&A capital markets and market share information. Key ratios and sector-specific reports.
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Comprehensive and proprietary news. SNL gives you all the tools you need to analyze every insurance company in the U.S. from top to bottom.

SNL presents insurance information the SNL way:SNL takes the large and complicated insurance data set and makes it simple. Get snapshots, ratios and preformatted analyses in seconds, not hours. With unique features like bottom-up group analysis, Loss Reserve and ratings data. Key ratios. Reinsurance relationships. Investment portfolio analysis. Loss triangles. Market share. All seamlessly linked with SNL's proprietary news, analytics, public company data and M&A data.

A single resource you can trust:Our coverage consolidates data from a wide range of sources and makes it accessible to you around the clock, online. SNL's insurance offering is guided by the same hallmarks for which SNL is famous for in other business areas: accuracy, relevance, completeness and timeliness. That's why top insurance executives, investment banks, money managers and legal pros all rely on SNL's unmatched expertise, and why over 93% of SNL clients renew their subscriptions every year.

c. SNL Financial Services:SNL provides 360-degree coverage of the financial services industry. Many portfolio managers use SNL as their exclusive, one-stop information provider for one or more of the 6 sectors SNL covers. Whether you're a sector specialist or a generalist, SNL's sector-specific formats, fields and financials give you the most relevant views. Serving and covering the financial services community:Industry leaders make SNL their preferred source for complete, accurate and timely financial data on financial services companies. Cross-sector coverage has a dual purpose: to vet external investments or acquisition opportunities and to benchmark internal performance against your peers. SNL offers detailed financial and industry-specific information, which includes news, investor presentations and transcripts, for the following types of firms:

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Asset Managers (13,000+ public and private) Broker/Dealers (4,900 public and private) Exchanges (NYSE Euronext, NASDAQ OMX Group, CME Group, TMX Group, IntercontintentalExchange)

Specialty Lenders (6,800 public and private) Mortgage REITs (50 SEC filers) Business Development Companies (41 SEC filers) Financial Technology Companies (103 SEC filers)

Data, news and analytics are cross-linked:Dozens of preformatted snapshots show you financial trends, M&A activity, business profiles and market share. Breaking news items and historical archives all have links to relevant company profiles, articles and reports. Make meaningful peer comparisons, perform in-depth analysis and generate customized reports using a point-and-click menu. Set up your own proprietary models and link them to the SNL database.

5.2. SNL Real Estate:SNL Real Estate combines real-time news, in-depth data and expert research on real estate companies around the world. Access detailed news, pricing, financial and property data through SNLs robust Web- and Excel-based platforms. From the North American REIT (public and private), REOC, homebuilding and gaming sectors, to the listed property markets in Europe, Asia and the Emerging markets, SNL is the trusted solution for global real estate investment.

SNL Real Estate is the best single source for real estate industry intelligence across the world. Even in complex global markets, SNL overcomes challenges such as country-to-country reporting differences to provide our hallmark levels of accuracy, completeness and sectorspecific standardization. And SNL's coverage is truly global: we provide market intelligence on more than 700 companies in 38 countries, numbers that continue to grow.

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The data, news and analytics you need, all connected:The real estate industry has unique financials that don't lend themselves to the usual standard formats. We track EPS, FFO, AFFO, NAV, revaluation gains, same-store figures, operating partnership units, joint venture debt, builder deliveries and other data specific to this sector. You need financial, operational and asset-level detail. We provide the data and tools you need to analyze that data. Every company's property portfolio is tracked at the asset level allowing you to view properties by geography, property type, size, tenants and other metrics uniquely relevant to the real estate industry.

Make SNL in your own image:When it comes to financial modelling, one size does not fit all. With SNL Real Estate, you don't have to forfeit or modify the Excel-based models that have been working for you. With SNLxl, our powerful Excel add-in tool, you can tie your Excel models into SNL's database to facilitate automatic round-the-clock updates to the data you need. Create customized models for faster, more in-depth analysis and update them automatically with the latest information from SNL. Don't have time to create a template? Call upon our template team who are experts in creating models and templates to your specific needs. This service is included in your subscription free of charge.

5.3. SNL Energy:SNL redefines the energy information market by integrating news, data and analytics in real time on a Web-based platform. Industry-leading access to comprehensive financials, breaking news, proprietary regulatory research, market pricing and fundamentals of supply and demand set the standard for intelligence on the power, natural gas, coal and renewable markets, driving critical energy investment decisions.

a. SNL Energy for Electric Power:SNL Energy provides in-depth company and asset-level coverage of the North American power industry. We combine diverse information sources into a cohesive, instantly accessible decision-support platform. Whether you are a strategic or financial analyst, SNL Energys flexible product gives you the ability to tailor information to your needs.

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Integrated data, news and analytics:Standardized briefing books combine financial and operational data, documents and news into a useful summary of companies and power plants. Our Excel Add-in provides immediate access to robust data and templated reports, including an extensive library of customizable Excel templates for power industry analysis and benchmarking. Our power sector coverage includes the following: Electric Utilities Operational Statistics (3,200+ IOU, Municipals, Public Authorities, & Cooperatives EIA 861) Energy Holding Companies Financial Results (200+ SEC Filers) Regulated Energy Company Financials (1,100+ FERC Form 1, RUS 7 & 12 Filers) Market Prices (SNL Indexes, CME/NYMEX, 9 ISOs) Power Plant Financials and Operations (9,000+ Plants) Project Development Tracking Mergers & Acquisitions Supply and Demand Fundamental Statistics

b. SNL Energy for Natural Gas:SNL Energys in-depth financial coverage of U.S. interstate pipelines and natural gas utilities is unrivaled. We combine information from multiple federal and state sources including EIA, FERC, CME/NYMEX, SEC, state public utility commissions (PUCs) as well as proprietary SNL assessments into a cohesive, instantly accessible decision support platform. Whether youre a strategic or financial analyst, SNL Energys flexible product gives you the ability to tailor information to your needs.

Integrated data, news and analytics:The Company Briefing Book combines financial and operational data, documents and news into a summary of key statistics and trends. Our Excel Add-In provides immediate access to robust data and templated reports, including an extensive library of customizable Excel templates for natural gas industry analysis and benchmarking.

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Data accuracy guarantee. As the leading provider of energy industry intelligence and data, SNL continually improves the process of gathering, vetting and scrubbing data. As a result, we are the only provider that guarantees data accuracy. Our natural gas sector coverage includes the following:

Interstate Pipelines (120+) Natural Gas Utilities (100+) Holding Company Financials Market Prices (SNL Daily Indexes, CME/NYMEX Futures and Swaps) Gas Pipeline, Storage and LNG Terminal Development Tracking FERC Quarterly Index of Customers EIA Monthly Fuel Purchase Transactions 3rd Party Capacity Release

c. SNL Energy for Coal:SNL Energy provides in-depth coverage of U.S. coal producers and mines. We combine information from multiple federal sources including EIA, FERC, MSHA, and SEC as well as proprietary SNL models, into a interactive decision support platform. Whether youre a supplier, buyer or analyst, you can tailor SNL Energys information for your business objectives.

Integrated data, news and analytics:Our Company Briefing Books combine financial and operational data, documents and news into a summary of key statistics and trends. The Coal Mine Briefing Book highlights coal production and mine operational details. Our Excel Add-in provides immediate access to robust data and templated reports, including an extensive library of customizable Excel templates for coal industry analysis and benchmarking.

Data accuracy guarantee. As the leading provider of coal industry intelligence and data, SNL continually improves the process of gathering, vetting and scrubbing data. As a result, we are the only provider that guarantees data accuracy.

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SNL's coal sector coverage includes the following: Coal Producers Operational Statistics (1500 +) Holding Company Financials Market Prices (SNL Indexes, CME, Emission Prices) MSHA Mine Statistics (3,500+ mines) EIA Monthly Fuel Purchase Transactions (between Mines and Power Plants) SNL Modeled Mine-to-Plant Transportation Costs

5.4. SNL Media & Communications:SNL is the first single source for in-depth analysis and proprietary data on the constantlyevolving media and communications business. Boundaries between sectors are blurring, so we cover them all and connect the dots in real time, tracking both quantitative impact and qualitative implications. SNL provides a universal source for the latest and most comprehensive research on each Media & Communications sector. Our seasoned analysts follow all of the major industry sectors, including Broadcast, TV Networks, Wireless & Wireline, U.S. Multichannel, Global Multichannel, TV Programming, Filmed Entertainment and Internet Media.

Proprietary insider intelligence compiled from multiple sources:Gain access to financial and operational insight that isnt available anywhere else. Were the only information provider that offers detailed research and analysis on media and communications companies and integrates them with breaking news stories and a comprehensive database of financial and operational information. We gather exclusive intelligence from our own surveys, insider contacts and top management interviews, and combine it with data collected from company-reported financials and regulatory databases, to give you the complete picture on any market or company, from top to bottom.

SNL platform makes your job easier:SNL interactive platform lets you query our databases with single-click ease. Click on a company name for complete profiles from financials to earnings estimates to capital structure. Use drill-down tabs for sector-specific operational metrics. Sort companies based on rankings and subscriber counts for each metric.

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5.5. Euro Financial Institutions Group (EFIG):-

More than 2000 public and private companies Banks, Insurance Companies, Broker/Dealers, Specialty Technology Mergers & Acquisition (M&A) deals High demand from clients Lenders, Financial

All investment banks with a focus on this industry Covered companies and banks Hedge funds, mutual funds, other investors

Cross functionality and depth data Product Development Client Training Excellent Client Support

Reasons to Enter in the European Market: High number of Banks Heavily Regulated Rich Data Complex Financial, Metrics, Ratios Good Potential Market Giant Banks (Branches All Over the World) High Demand From Clients Adding New Values to Existing Clients
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Data Sets Provided By SNL:Financial Data Financial Statements Dividends Funding Segment NCOs & Asset Quality

Non Financial Data Institutional Data Shares Data Branches & ATMs

Applications & Forms:Applications WEST Extractor Dash Board Document Viewer

Forms Financial Institution Funding EE&CC Segment Dividends

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Data Sources and Product:-

Data Sources Filings with the government and regulatory agencies Press releases of the companies Newspaper articles Faxes and Surveys Individual contacts at firms with which SNL has clients, potential clients and coverage

Product SNLi SNLxl

Expectations: Understand unique characteristics/procedure Data quality and error checks Provide most accurate and timely information Flexibility/Time Adjustments Leave Requests Regular Allocation Project Deadlines

Challenges Ahead: Backfill of approx 900 Banks Extraction Procedures Accuracy & Timeliness Product Enhancement Error Checks

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Important Dates: Mid-2000s: Bank Research begins scoping the global market and collecting documents. Summer, 2008: Executive Team asks James and his group to begin researching International FIG. April, 2009: Reid accompanies James on a trip to Europe to hear from prospective users firsthand of the need to make such a large investment. July, 2009: SNLs Board approves the project. August, 2009: SNL hires first 18 accounting EFIG analyst trainees. Hiring in other groups follows. January, 2011: Product release.

Why Europe?
Weve decided to start with Europe for the first phase of our global coverage. We want to focus on a market that we feel we know better and that we believe will be easier to cover and sell into. After Europe, we will assess moving into Asia. What people in Europe have been telling us Virtually everyone we spoke with entered all of their own data by hand. Competing products are inaccurate and unreliable. They have trouble understanding the accounting intricacies and comparing different banks across different countries. They are really excited about SNL entering this market. In their own words There is a massive need for SNL data in Europe. Nicolas Guillaud, Corporate Development, BNP Paribas in Paris Its a good idea because theres nothing like it in the UK or Europe. The US is miles easier to cover because of SNL. Mark Conrad, Associate Partner at Algebris Investments in London

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What I should be able to download in 5 minutes takes a week or a day at least. Hendrick Becker, VP of Lazard Investment Banking in Frankfurt Five years ago, French analysts only covered French banks. Now Im covering Deutsche Bank If you managed to do this, Im sure people would buy it. There is nothing like it it just does not exist. Thats something we need. Alain Tchibozo, European Banks Analyst at Mediobanca in London

In Europe, were like you were in the 80s before SNL. Carlos Egea, European Bank Strategist at Morgan Stanley in London

Current data providers in Europe: Thomson / Reuters : 800 lb gorilla. Comprehensive coverage & long data history, but poor data quality and not enough industry specific fields. Capital IQ : Starting to make inroads with better perceived data quality than Thomson. Still not enough industry focus. BankScope (Fitch / BVD : Bank specific. horrendous data quality and application. Factset : Havent heard much of them. Purchased Thomson / Reuters data. Merger Market : Popular news / rumors product. Poor data quality. Bloomberg : Used the same way in Europe that it is here. Long history in the market. But,

Full Coverage: 350 public (listed) banks 400+ of the largest private (non-listed) banks and captive subsidiaries

Light Coverage: Approximately 100 listed insurance companies and 300+ financial service companies Geographic coverage of Europe is comprehensive: including the entire EU, emerging markets, Russia and Turkey. We have hired to date 9 translators in London, India and Pakistan. We hope to hire 8 more. We will cover at least the following languages in house: French, German, Italian, Spanish, Swedish, Norwegian and Danish. We will rely on freelancers for other languages.
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 Google Translate and other technology will aid in the process. 5-year historic backfill of annual, interim and quarterly financials. 450+ items in a standardized IFRS template, plus 75+ calculated ratios. More fields manually entered than in SNLs U.S. Bank/Thrift GAAP template. No source of regulatory data. Like-for-like comparisons across Europe; some comparisons v U.S. GAAP. 5-year historical backfill of bank deals. 5-year historical backfill of capital offerings. Equity and Debt league tables. Current outstanding debt and equity issuances. No regulatory source for bank branch locations or market share. Manual entry of branch locations for 750 covered banks in Europe. Depository branches are being entered, along with other bank offices. When possible, branches are linked to subsidiary/brand. Daily summaries from 160 European news sources: financial press, national and regional newspapers, industry publications and websites. Daily Dose and other proprietary features and blogs. News coverage on banks, but also insurance and financial service companies. Translated news flow via in-house and freelance reporters located across Europe.

The European FIG Product - Other Content: The product will also contain: Country macroeconomic data and banking stats Company documents Intra-day prices Conference call transcripts Executive and Board of Director profiles Company events Company corporate structures Consensus estimates

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The European FIG Product - Going Global:The internationalization of SNL Default Currency (conversion in SNLxl and SNL.com) Alerts by Time Zone Newsletters in A4 Global indices and interest rates Country codes Date and time format Number format Local terminology/language

European FIG Overview - Launch Partnerships:a. Launch partners commit to confidentiality and agree to meet with us each month to provide feedback and insight and lend their industry expertise. b. In return they get beta (early) access, and the option to subscribe within 90 days after full launch at a pre-determined price. Benefit to SNL = access to market expertise, soft-commitments to help with building sub value

6. Different Products of SNL:SNL Unlimited News IR solutions Data Feeds Data Publications Performance Grants Support/Training Center for Financial Education

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7. Different Solutions Provided By SNL:Investment Banking and M&A Community Banking Investment Management Private Equity Corporations Consultants Government Agencies Universities Low & Accounting Firms

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8. International Financial Reporting Standards (IFRS)

8.1 What is IFRS?
International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.

8.2 How widespread is the adoption of IFRS around the world?

Approximately 120 nations and reporting jurisdictions permit or require IFRS for domestic listed companies, although approximately 90 countries have fully conformed to IFRS as promulgated by the IASB and include a statement acknowledging such conformity in audit reports. Other countries, including Canada and Korea, are expected to transition to IFRS by 2011. Mexico will require IFRS for all listed companies starting in 2012. Japan has introduced a roadmap for adoption that it will decide on in 2012 (with a proposed adoption date of 2015 or 2016) and is permitting certain qualifying domestic companies to apply IFRS from fiscal years ending on or after March 31, 2010. Still other countries have plans to converge their national standards with IFRS.

8.3 Advantages of converting to IFRS:By adopting IFRS, a business can present its financial statements on the same basis as its foreign competitors, making comparisons easier. Furthermore, companies with subsidiaries in countries that require or permit IFRS may be able to use one accounting language companywide. Companies also may need to convert to IFRS if they are a subsidiary of a foreign company that must use IFRS, or if they have a foreign investor that must use IFRS. Companies may also benefit by using IFRS if they wish to raise capital abroad.

8.4 Disadvantages of converting to IFRS:Despite a belief by some of the inevitability of the global acceptance of IFRS, others believe that U.S. GAAP is the gold standard, and that a certain level of quality will be lost with full acceptance of IFRS. Further, certain U.S. issuers without significant customers or operations outside the United States may resist IFRS because they may not have a market incentive to prepare IFRS financial statements. They may believe that the significant costs associated with adopting IFRS outweigh the benefits.

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9. Different Standard of IFRS:IFRS 1--FIRST-TIME ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS:Objective:IFRS 1 First-time Adoption of International Financial Reporting Standards sets out the procedures that an entity must follow when it adopts IFRSs for the first time as the basis for preparing its general purpose financial statements.

Definition of first-time adoption:A first-time adopter is an entity that, for the first time, makes an explicit and unreserved statement that its general purpose financial statements comply with IFRSs. An entity may be a first-time adopter if, in the preceding year, it prepared IFRS financial statements for internal management use, as long as those IFRS financial statements were not made available to owners or external parties such as investors or creditors. If a set of IFRS financial statements was, for any reason, made available to owners or external parties in the preceding year, then the entity will already be considered to be on IFRSs, and IFRS 1 does not apply.

This would mean that an entity's first financial statements should include at least: Three balance sheets (statements of financial position) Two statements of comprehensive income Two separate income statements (if presented) Two statements of cash flows Two statements of changes in equity and Related notes, including comparative information

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IFRS 2--SHARE-BASED PAYMENT:Definition of Share-based Payment:A share-based payment is a transaction in which the entity receives or acquires goods or services either as consideration for its equity instruments or by incurring liabilities for amounts based on the price of the entity's shares or other equity instruments of the entity. The accounting requirements for the share-based payment depend on how the transaction will be settled, that is, by the issuance of (a) equity, (b) cash, or (c) equity or cash.

Scope:The concept of share-based payments is broader than employee share options (ESOP). IFRS 2 encompasses the issuance of shares, or rights to shares, in return for services and goods. Examples of items included in the scope of IFRS 2 are share appreciation rights, employee share purchase plans, employee share ownership plans, share option plans and plans where the issuance of shares (or rights to shares) may depend on market or non-market related conditions. IFRS 2 applies to all entities. There is no exemption for private or smaller entities. Furthermore, subsidiaries using their parent's or fellow subsidiary's equity as consideration for goods or services are within the scope of the Standard.

IFRS 2 does not apply to share-based payment transactions other than for the acquisition of goods and services. Share dividends, the purchase of treasury shares, and the issuance of additional shares are therefore outside its scope.

Recognition and Measurement:The issuance of shares or rights to shares requires an increase in a component of equity. IFRS 2 requires the offsetting debit entry to be expensed when the payment for goods or services does not represent an asset. The expense should be recognized as the goods or services are consumed. For example, the issuance of shares or rights to shares to purchase inventory would be presented as an increase in inventory and would be expensed only once the inventory is sold or impaired.

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As a general principle, the total expense related to equity-settled share-based payments will equal the multiple of the total instruments that vest and the grant-date fair value of those instruments. In short, there is truing up to reflect what happens during the vesting period. However, if the equity-settled share-based payment has a market related performance feature, the expense would still be recognized if all other vesting features are met. The following example provides an illustration of a typical equity-settled share-based payment.

IFRS 3 --BUSINESS COMBINATIONS:Definition of a business combination:A business combination is a transaction or event in which an acquirer obtains control of one or more businesses. A business is defined as an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return directly to investors or other owners, members or participants.

Acquirer must be identified:Under IFRS 3, an acquirer must be identified for all business combinations. IFRS 3 does not apply to the formation of a joint venture, combinations of entities or businesses under common control. The IASB added to its agenda a separate agenda project on Common Control Transactions in December 2007. Also, IFRS 3 does not apply to the acquisition of an asset or a group of assets that do not constitute a business.

Method of Accounting for Business Combinations:Acquisition method:-The acquisition method (called the 'purchase method' in the 2004 version of IFRS 3) is used for all business combinations.

Steps in applying the acquisition method are: Identification of the 'acquirer' the combining entity that obtains control of the acquiree, Determination of the 'acquisition date' the date, on which the acquirer obtains control of the acquiree,

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 Recognition and measurement of the identifiable assets acquired, the liabilities assumed and any non-controlling interest (NCI, formerly called minority interest) in the acquiree, Recognition and measurement of goodwill or a gain from a bargain purchase, Measurement of acquired assets and liabilities, Assets and liabilities are measured at their acquisition-date fair value (with a limited number of specified exceptions).

IFRS 4 --INSURANCE CONTRACTS:Scope:IFRS 4 applies to virtually all insurance contracts (including reinsurance contracts) that an entity issues and to reinsurance contracts that it holds. It does not apply to other assets and liabilities of an insurer, such as financial assets and financial liabilities within the scope of IAS 39 Financial Instruments:

Recognition and Measurement:Furthermore, it does not address accounting by policyholders.

Definition of insurance contract:An insurance contract is a "contract under which one party (the insurer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder.

Accounting policies:The IFRS exempts an insurer temporarily from some requirements of other IFRSs, including the requirement to consider IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors in selecting accounting policies for insurance contracts. However, the standard prohibits provisions for possible claims under contracts that are not in existence at the reporting date requires a test for the adequacy of recognized insurance liabilities and an impairment test for reinsurance assets requires an insurer to keep insurance liabilities in its balance sheet until they are discharged or cancelled, or expire, and prohibits offsetting
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insurance liabilities against related reinsurance assets and income or expense from reinsurance contracts against the expense or income from the related insurance contract Changes in accounting policies.

IFRS 4 permits an insurer to change its accounting policies for insurance contracts only if, as a result, its financial statements present information that is more relevant and no less reliable, or more reliable and no less relevant. [IFRS 4.22] In particular, an insurer cannot introduce any of the following practices, although it may continue using accounting policies that involve them: measuring insurance liabilities on an undiscounted basis, measuring

contractual rights to future investment management fees at an amount that exceeds their fair value as implied by a comparison with current market-based fees for similar services using non-uniform accounting policies for the insurance liabilities of subsidiaries.

Re-measuring insurance liabilities:The IFRS permits the introduction of an accounting policy that involves re-measuring designated insurance liabilities consistently in each period to reflect current market interest rates (and, if the insurer so elects, other current estimates and assumptions). Without this permission, an insurer would have been required to apply the change in accounting policies consistently to all similar liabilities. [IFRS 4.24]

IFRS 5 --NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS:Held-for-sale classification:
In general, the following conditions must be met for an asset (or 'disposal group') to be classified as held for sale: management is committed to a plan to sell the asset is available for immediate sale an active programme to locate a buyer is initiated the sale is highly probable, within 12 months of classification as held for sale (subject to limited exceptions) the asset is being actively marketed for sale at a sales price reasonable in relation to its fair value actions required to complete the plan indicate that it is unlikely that plan will be significantly changed or withdrawn.

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The assets need to be disposed of through sale. Therefore, operations that are expected to be wound down or abandoned would not meet the definition (but may be classified as discontinued once abandoned).

However, all classification, presentation and measurement requirements of IFRS 5 apply to a non-current asset (or disposal group) that us classified as held for distribution to owners.

Disposal group. A 'disposal group' is a group of assets, possibly with some associated liabilities, which an entity intends to dispose of in a single transaction. The measurement basis required for non-current assets classified as held for sale is applied to the group as a whole, and any resulting impairment loss reduces the carrying amount of the non-current assets in the disposal group in the order of allocation required by IAS 36.

Measurement:The following principles apply:-

At the time of classification as held for sale:- Immediately before the initial classification of the asset as held for sale, the carrying amount of the asset will be measured in accordance with applicable IFRSs. Resulting adjustments are also recognized in accordance with applicable IFRSs.

After classification as held for sale:-Non-current assets or disposal groups that are classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell. Impairment. Impairment must be considered both at the time of classification as held for sale

At the time of classification as held for sale:-Immediately prior to classifying an asset or disposal group as held for sale, measure and recognize impairment in accordance with the applicable IFRSs (generally IAS 16, IAS 36, IAS 38, and IAS 39). Any impairment loss is recognized in profit or loss unless the asset had been measured at revalued amount under IAS 16 or IAS 38, in which case the impairment is treated as a revaluation decrease.

After classification as held for sale:-Calculate any impairment loss based on the difference between the adjusted carrying amounts of the asset/disposal group and fair value less costs to
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sell. Any impairment loss that arises by using the measurement principles in IFRS 5 must be recognised in profit or loss (IFRS 5.20), even for assets previously carried at revalued amounts. This is supported by IFRS 5 BC.47 and BC.48, which indicate the inconsistency with IAS 36

Assets carried at fair value prior to initial classification:- For such assets, the requirement to deduct costs to sell from fair value will result in an immediate charge to profit or loss.

Subsequent increases in fair value:- A gain for any subsequent increase in fair value less costs to sell of an asset can be recognised in the profit or loss to the extent that it is not in excess of the cumulative impairment loss that has been recognised in accordance with IFRS 5 or previously in accordance with IAS

IFRS 6 ----- EXPLORATION FOR AND EVALUATION OF MINERAL RESOURCES:Exploration for and evaluation of mineral resources mean the search for mineral resources, including minerals, oil, natural gas and similar non-regenerative resources after the entity has obtained legal rights to explore in a specific area, as well as the determination of the technical feasibility and commercial viability of extracting the mineral resource.

Exploration and evaluation expenditures are expenditures incurred in connection with the exploration and evaluation of mineral resources before the technical feasibility and commercial viability of extracting a mineral resource is demonstrable.

IFRS 6 permits an entity to develop an accounting policy for recognition of exploration and evaluation expenditures as assets without specifically considering the requirements of paragraphs 11 and 12 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. [IFRS 6.9] Thus, an entity adopting IFRS 6 may continue to use the accounting policies applied immediately before adopting the IFRS. This includes continuing to use recognition and measurement practices that are part of those accounting policies.

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IFRS 6 requires entities recognizing exploration and evaluation assets to perform an impairment test on those assets when facts and circumstances suggest that the carrying amount of the assets may exceed their recoverable amount. [IFRS 6.18]Entities shall measures the impairment in accordance with IAS 36 Impairment of Assets once it is identified.

IFRS 6 also provides guidance on how to identify cash-generating units.

IFRS 6 requires disclosure of information that identifies and explains the amounts recognised in its financial statements arising from the exploration for and evaluation of mineral resources, including: (i) its accounting policies for exploration and evaluation expenditures including the recognition of exploration and evaluation assets. (ii) the amounts of assets, liabilities, income and expense and operating and investing cash flows arising from the exploration for and evaluation of mineral resources.

IFRS 7 ----- FINANCIAL INSTRUMENTS-DISCLOSURES:Disclosure Requirements of IFRS 7:IFRS requires certain disclosures to be presented by category of instrument based on the IAS 39 measurement categories. Certain other disclosures are required by class of financial instrument. For those disclosures an entity must group its financial instruments into classes of similar instruments as appropriate to the nature of the information presented.

The two main categories of disclosures required by IFRS 7 are: I. II. Information about the significance of financial instruments. Information about the nature and extent of risks arising from financial instruments

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I.

Information about the significance of financial instruments:-

Balance Sheet:Disclose the significance of financial instruments for an entity's financial position and performance. This includes disclosures for each of the following categories: Financial assets measured at fair value through profit and loss, showing separately those held for trading and those designated at initial recognition, held-to-maturity investments, loans and receivables, available-for-sale assets, financial liabilities at fair value through profit and loss, showing separately those held for trading and those designated at initial recognition, financial liabilities measured at amortized cost, other balance sheet-related disclosures:

Special disclosures about financial assets and financial liabilities designated to be measured at fair value through profit and loss, including disclosures about credit risk and market risk, changes in fair values attributable to these risks and the methods of measurement.

Reclassifications of financial instruments from one category to another (e.g. from fair value to amortized cost or vice versa) Disclosures about de-recognitions, including transfers of financial assets for which derecogntion accounting is not permitted by IAS 39 Information about financial assets pledged as collateral and about financial or non-financial assets held as collateral reconciliation of the allowance account for credit losses (bad debts) by class of financial assets information about compound financial instruments with multiple embedded derivatives breaches of terms of loan agreements

Income Statement and Equity:Items of income, expense, gains, and losses, with separate disclosure of gains and losses from: [IFRS 7.20(a)] Financial assets measured at fair value through profit and loss, showing separately those held for trading and those designated at initial recognition. Held-to-maturity investments. Loans and receivables. Available-for-sale assets. Financial liabilities measured at fair value through profit and loss, showing separately those held for trading and those designated at initial recognition. Financial liabilities measured at amortized cost.
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Other income statement-related disclosures:Total interest income and total interest expense for those financial instruments that are not measured at fair value through profit and loss, fee income and expense, amount of impairment losses by class of financial assets, interest income on impaired financial assets.

Other Disclosures: accounting policies for financial instruments information about hedge accounting, including: description of each hedge, hedging instrument, and fair values of those instruments, and nature of risks being hedged for cash flow hedges, the periods in which the cash flows are expected to occur, when they are expected to enter into the determination of profit or loss, and a description of any forecast transaction for which hedge accounting had previously been used but which is no longer expected to occur if a gain or loss on a hedging instrument in a cash flow hedge has been recognized in other comprehensive income, an entity should disclose the following: the amount that was so recognized in other comprehensive income during the period, the amount that was removed from equity and included in profit or loss for the period, the amount that was removed from equity during the period and included in the initial measurement of the acquisition cost or other carrying amount of a non-financial asset or non- financial liability in a hedged highly probable forecast transaction for fair value hedges, information about the fair value changes of the hedging instrument and the hedged item hedge ineffectiveness recognized in profit and loss.

Information about the fair values of each class of financial asset and financial liability, along with: comparable carrying amounts description of how fair value was determined the level of inputs used in determining fair value reconciliations of movements between levels of fair value measurement hierarchy additional disclosures for financial instruments whose fair value is determined using level 3 inputs including impacts on profit and loss, other comprehensive income and sensitivity analysis information if fair value cannot be reliably measured.

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The fair value hierarchy introduces 3 levels of inputs based on the lowest level of input significant to the overall fair value:

Level 1 - quoted prices for similar instruments Level 2 - directly observable market inputs other than Level 1 inputs Level 3 - inputs not based on observable market data

Note that disclosure of fair values is not required when the carrying amount is a reasonable approximation of fair value, such as short-term trade receivables and payables, or for instruments whose fair value cannot be measured reliably.

II.

Nature and extent of exposure to risks arising from financial instruments:-

Qualitative disclosures:The qualitative disclosures describe: risk exposures for each type of financial instrument managements objectives, policies, and processes for managing those risks changes from the prior period

Quantitative disclosures:The quantitative disclosures provide information about the extent to which the entity is exposed to risk, based on information provided internally to the entity's key management personnel. These disclosures include: summary quantitative data about exposure to each risk at the reporting date disclosures about credit risk, liquidity risk, and market risk and how these risks are managed as further described below:-

Concentrations of risk:I. Credit Risk Credit risk is the risk that one party to a financial instrument will cause a loss for the other party by failing to pay for its obligation.

Disclosures about credit risk include: maximum amount of exposure (before deducting the value of collateral), description of collateral, information about credit quality of financial assets that are neither past due nor impaired, and information about credit quality of financial
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assets whose terms have been renegotiated for financial assets that are past due or impaired, analytical disclosures are required, information about collateral or other credit enhancements obtained or called

II.

Liquidity Risk:-

Liquidity risk is the risk that an entity will have difficulties in paying its financial liabilities.

Disclosures about liquidity risk include: a maturity analysis of financial liabilities description of approach to risk management

III.

Market Risk:-

Market risk is the risk that the fair value or cash flows of a financial instrument will fluctuate due to changes in market prices. Market risk reflects interest rate risk, currency risk and other price risks.

Disclosures about market risk include: a sensitivity analysis of each type of market risk to which the entity is exposed additional information if the sensitivity analysis is not representative of the entity's risk exposure (for example because exposures during the year were different to exposures at year-end).

IFRS 7 provides that if an entity prepares a sensitivity analysis such as value-at-risk for management purposes that reflects interdependencies of more than one component of market risk (for instance, interest risk and foreign currency risk combined), it may disclose that analysis instead of a separate sensitivity analysis for each type of market risk

IFRS 8 --OPERATING SEGMENTS:Operating Segments:IFRS 8 defines an operating segment as follows. An operating segment is a component of an entity: that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity) whose operating results are reviewed regularly by the entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available.
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Reportable segments:IFRS 8 requires an entity to report financial and descriptive information about its reportable segments. Reportable segments are operating segments or aggregations of operating segments that meet specified criteria: its reported revenue, from both external customers and intersegment sales or transfers, is 10 per cent or more of the combined revenue, internal and external, of all operating segments; or the absolute measure of its reported profit or loss is 10 per cent or more of the greater, in absolute amount, of (i) the combined reported profit of all operating segments that did not report a loss and (ii) the combined reported loss of all operating segments that reported a loss; or its assets are 10 per cent or more of the combined assets of all operating segments. If the total external revenue reported by operating segments constitutes less than 75 per cent of the entity's revenue, additional operating segments must be identified as reportable segments (even if they do not meet the quantitative thresholds set out above) until at least 75 per cent of the entity's revenue is included in reportable segments.

IFRS 9 --Financial Instruments:IFRS 9 Is a 'Work in Progress' and Will Eventually Replace IAS 39 in its Entirety
Initial measurement of financial assets:All financial assets are initially measured at fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.

Subsequent measurement of financial assets:IFRS 9 divides all financial assets that are currently in the scope of IAS 39 into two classifications those measured at amortized cost and those measured at fair value. Classification is made at the time the financial asset is initially recognized, namely when the entity becomes a party to the contractual provisions of the instrument.

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10.

Balance Sheet Reporting of IFRS:-

IFRS Reporting

ASSETS

LIABILITY

Cash & Cash Equivalent Held for Trading Assets

1. 2. 3. 4. 5. 6. Bank Loans, Customers Loans, Debt Securities, Equity Securities, Derivative, Others.

Held for trading Liability

1. Bank Deposits, 2. Customers Deposits, 3. Debts 4. Subordinated Debts, 5. Derivatives 6. Securities Sold, not Purchased

FVTPL Assets
(Fair Value through Profit & Loss) 1. 2. 3. 4. 5. 6. Bank Loans, Customers Loans, Debt Securities, Equity Securities, Embedded derivatives, Others.

FVTPL Liability
(Fair Value through Profit & Loss) 1. Bank Deposits, 2. Customers Deposits, 3. Debt Securities, 4. Subordinated Debts 5. Embedded derivatives, 6. Others.

AFS Assets
1. 2. 3. 4. 5. Bank Loans, Customers Loans, Debt Securities, Equity Securities, Others,

Amortized Assets
1. 2. 3. 4. Bank Loans, Customers Loans, Debts Securities, Others

Amortized Liability
1. Bank Deposits, 2. Customers Deposits, 3. Subordinated Debts, 4. Debts Securities, 5. Others

HTM Assets 1. Debt Security, 2. Others. Other Assets Other Liability

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11.

Learning and Experience:I did my capstone project at SNL financial which is one of the well known

Information provider Firm. I learned how to apply theoretical knowledge in practical life. Two months of training has given me lots of insight into practical aspects of business. As the banking and finance industry is rapidly growing in India, it becomes necessary to have knowledge of it.

This training has been the immense professional value to me as it has given me practical exposure to the corporate world. Working with the staff and at the same time interacting with the customers has shown the two contradictory faces of work. I also learned how to deal with customers each having different mindset.

During this executive training, I have learned how to faced challenges during jobs and convert them into opportunities. I have learned about corporate etiquettes and how to familiarize with their environment. I have learned how to handle objection which are raised by client and also learned about marketing & selling tips. I also got platform to develop a network which will be useful in enhancing career prospects.

Apart from this, while working with the SNL Financial, I realize the importance of time management, the essence of time that I might often forget in our daily academic schedule.

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12.

Bibliography:-

The list of reference books for IFRS are as follows:-

1. International Financial Reporting Standards (IFRSs) Published by Taxmann Publications P Ltd. 2. A Guide through International Financial Reporting Standards July 2008Published by IASB. 3. The IFRS Manual of Accounting authored by the UK Accounting Consulting Services team of PricewaterhouseCoopers LLP and published by CCH. 4. International GAAP 2009 by Ernst and Young Published by Wiley.

Websites:www.snl.com www.wikipedia.org www.rbi.gov www.ifrs.org www.sebi.gov.in www.kpmginstitute.com

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