Group accounting

As a group, accounting refers to any actions and organizational measures to prepare and publish consolidated financial statements under generally accepted accounting principles.
Since the mid-20th Century have increased concentrations of a group of companies steadily. Modulating the corporations have become more international, both in terms of belonging to their company, and in view of the markets in which they operate. Following this development, more and more companies legally obliged to draw up complete financial statements. By the obligation or the right to vote consolidated accounts in accordance with International Financial Reporting Standards (IFRS), many countries do make the consolidated financial statements of companies of their country internationally comparable.
In Germany, with the Companies Act of 1965 initially required only listed companies to corporate accounting. With the Disclosure Act of 1969, the group accounting requirements has been extended to large companies with parent companies in other legal forms. Following the implementation of the 7th EC directive on the standardization of company law of 1983, the national rules on corporate accounting in the European Community, now the European Union (EU), converged. In Germany, the directive was implemented by the Accounts Directive Act of 1985, which introduced the basic provisions for consolidated accounts in the Commercial Code. In Austria, the Group accountability was first introduced by the Accounting Act of 1990, which entered into force on 1.1.1994. From 1998 to 2004, allowed the German legislator publicly traded parent company financial statements in accordance with international accounting rules, such as drawn up in accordance with IFRS or U.S. GAAP instead of consolidated financial statements in accordance with German commercial law. However, an EU regulation in 1992, publicly traded companies in the EU for the fiscal years beginning after 31.12.2004, required financial statements in accordance with IFRS set up, which were accepted by the EU through an endorsement process. Germany has taken by the Member State options made to all other companies should be given the right to vote, shall present consolidated financial statements according to commercial law, or IFRS.

Financial Statements

Consolidated financial statements is an annual or interim financial statements of a company. While he represents the Group's financial position and results of a group, he is both the members of the group serve as well as external users to information and decision making. The preparation of consolidated financial statements are first consolidated financial statements of the company standardized and summed to a total conclusion. Subsequently, this will be adjusted through consolidation measures to ensure linkages and economic relations between the group companies. After the unit fiction, which also is called the principle of unity, a consolidated financial statement is presented as if the group were a single company.
In a group, the parent company to have on the Group's subsidiaries, a dominant influence. Thus, there is often relationship between group companies, the independent companies would not normally go. Your business is focused in general on the group and can be better assessed in the group context. Therefore, the individual firings of the parent and the subsidiary are often less meaningful than the individual accounts of independent companies. The assets, liabilities, financial position and results of a group may be better represented by consolidated financial statements. This can also help the financial position and results of each group company to understand better.
Whether a parent has to prepare consolidated financial statements, determine national laws, stock exchange regulations, other accounting rules or agreement. Which companies included in consolidated financial statements (consolidation), is governed by the applicable accounting rules.
The scope of the consolidated financial statements is different depending on the accounting system. Often prescribe the accounting rules that the consolidated financial statements a balance sheet, profit and loss account or statement of comprehensive income, one notes, a statement of changes, including changes in equity referred to, and shall contain a statement of cash flows. Also, segment reporting may be part of the consolidated financial statements. Consolidated financial statements are intended to supplement in Germany and Austria for a consolidated management report.
In Germany, the information function of the consolidated financial statements is in the foreground. He is neither de jure nor the calculation of dividend yield as a basis for taxation.

Credit Logo, Kritik

Logo

Former Logo of Credit Suisse, 1997-2006 On the first emblem of the SKA by 1856 - Spirited written signature SKA - was 1930 a coin icon with 20 stars for the branches and the headquarters. The new brand of 1952 contained the first time a picture, it shows an anchor as a symbol of trust, surrounded by Anchored in top confidence and Credit Suisse down.
1967 the Bank launched its first systematic campaign. 1968 was selected from a broad cross-Wermelinger the competition as a new logo. In 1976, the SKA in turn a new logo with a red, white and blue. In 1997, the revised logo and modernized. 2006 introduced by Credit Suisse at its 150th anniversary, the current logo.

Criticism

1997, Credit Suisse, in cooperation with the Swiss Bank Corporation and Union Bank of Switzerland (UBS in 1998 by a merger) to international pressure, a fund to compensate Holocaust victims. Banks were accused of store credits worth several hundred million U.S. dollars stolen from the German National Socialists and Jewish citizens have deposited in Switzerland. See, methods to Jewish assets in Swiss banks.
Like other Swiss banks, Credit Suisse was for their business relations with South Africa during apartheid criticism. 2002 in New York a complaint of 91 victims of apartheid against Credit Suisse, UBS and 20 other Western companies have been submitted and are supported by collaboration with apartheid South Africa, serious human rights violations. The suit was dismissed in November 2004 and is in Appeals.
2007 criticized human rights and environmental protection organizations, Credit Suisse, because, together with other banks in the IPO of Malaysian timber company Samling in Hong Kong funded. Environmentalists accuse Samling the destruction of rain forests and illegal logging and demand that the Credit Suisse estimated 10 million dollars will profit from the business for the protection of tropical forests. Credit Suisse believes to have examined this relationship extensively, particularly with regard to sustainable forest management and compliance with local environmental regulations by Samling.

Credit History

On 5 July 1856 Alfred Escher founded the Schweizerische Kreditanstalt (SKA) - Credit Suisse today - and made it to Zurich's leading banking center and business center of Switzerland. The headquarters of the SKA is located since 1873 at the Parade Square in the center of Zurich. 1895 launched the SKA, the "Securities Exchange Rates", which is considered the first periodical publication of the World Bank. 1944 will be renamed "bulletin" and has since become to customers, stakeholders and other interested parties-looking magazine of the bank.
With the opening of the first branch in Basel in 1905 began the expansion of Credit Suisse in Switzerland, which was conducted mainly through the acquisition of regional banks. The first stores in the French-and Italian-speaking Switzerland were opened in 1906 in Geneva and in 1913 in Lugano.
After the opening of the first representation in New York in 1870, the SKA was founded in various international locations representative, in Paris (1910), London (1954), Buenos Aires (1959), Hong Kong (1969) and Bahrain (1975). 1964 was a branch of Credit Suisse in New York a license as a universal bank in the U.S..
The case of Chiasso "1977 brought the SKA the biggest loss in its history. Here, the head of the SKA Branch of Chiasso had for years with the support of Ticino lawyers and politicians money from Italy moved illegally to Liechtenstein. [4] Under the pressure of this crisis broke, the SKA on to pastures new and changed in the wake of Zurich tradition Institute to the international financial services provider.
The cooperation with the SKA in 1932 as a subsidiary of First National Bank of Boston, founded First Boston Corporation began in 1978. 1988 the CS First Boston Inc. in New York. CS Holding was created in 1982 as a sister company of the SKA to combine different interests. In 1989, the SKA has been incorporated as a subsidiary in the CS Holding. In 1990, the CS Holding, the majority control at the CS First Boston and became the first non-American company with a controlling interest in a U.S. investment bank. 1992, the SKA separated by a management buy-out by the auditing and consulting firm KPMG Fides Peat (now KPMG) where it was since 1928 the majority owner.
Among the important recent acquisitions of the SKA in Switzerland include the acquisition of Bank Leu in 1990 and the Swiss People's Bank 1993rd The Swiss People's Bank (then unique as a cooperative and not structured as AG) was then the fourth largest bank in Switzerland, while held the UBS (Union Bank of Switzerland) and the Swiss Bank Corporation (SBC), the positions 1 and 2. UBS and SBC merged later on today's UBS.
1996, the CS Holding and Winterthur to enter into an alliance to provide access to common outlet for their products. In 1997, the CS Holding Credit Suisse Group with four business units: Credit Suisse, Credit Suisse Private Banking, Credit Suisse First Boston and Credit Suisse Asset Management. In the same year the merger took place between Credit Suisse Group and Winterthur. 2004, announced the group to run from now to Winterthur as a financial investment and prepare for a possible financial transaction. On 14 June 2006, announced the sale of Winterthur to AXA, the French group.
Since 1 January 2006, the Credit Suisse as an integrated global bank, with three divisions - investment banking, private banking, asset management - under a single brand name Credit Suisse. Since 1 January 2007 all old Credit Suisse Private Banking daughters to become the fifth largest retail bank in Switzerland Clariden Leu combined.
During the financial crisis of 2007, the bank could ensure its survival without direct government support. After the G-20 summit in 2009 amended the Credit Suisse their remuneration policies.
2010, the bank moved into the focus of investigations by the German law enforcement authorities because of suspected aid to tax evasion.

Credit Suisse

Credit Suisse (CS) - formerly known as Credit Suisse SKA - is one of the largest global financial services company headquartered in Zurich.

Company

Credit Suisse employs a large bank around 50,500 employees, including about 21,000 in Switzerland (September 2010). The company operates in the sectors with investment banking, private banking and asset management divided. By the end of 2009, Credit Suisse had a balance sheet total of 1'031, 4 billion Swiss francs and a net profit of 6.411 billion francs. Client assets totaled 1,406, 2 billion. CEO of Credit Suisse Group Brady W. Dougan.
The shares of Credit Suisse (CSGN) are listed on the Swiss Exchange SIX Swiss Exchange and as American Depositary Shares (CS) on the New York Stock Exchange (NYSE).
Credit Suisse is a universal bank with investment banking, private banking and asset management (Asset Management). To the Credit Suisse Group includes the private bank Clariden Leu, Neue Aargauer Bank, which specializes in personal loans and leasing bank now. In addition, the Credit Suisse Group operates with its subsidiary Wincasa in real estate.

Customer groups of banks

Customer groups of banks

The customer groups of banks -Retail
-Retail market (retail) (Standardized) lending and investment transactions and payments
-Private Banking: Asset management and management for high net worth individuals
-Corporate Clients
-States and local
-Banks

Accounting

The financial statements of banks is also not significantly different. However, there is a special bank account. The cost and management accounting will take place at banks in the cost and revenue accounting, see there.

Legal documents

In Germany, the Banking Act the legal basis for banks. In Austria, which took over after the Second World War for the time being the German law was applied from 1979, a modified, Austria specific banking law, which in 1986 again changed by amendment, and in 1994 completely replaced by the new banking law was.
A peculiarity of Switzerland, which partly true also for Austria, the banking secret. In Germany there are - contrary to a popular opinion - no law on bank secrecy that protects against access to government data.

Deposits and loans. Economic functions of banks

Deposits and loans

Money that is not used directly, can be saved by households for later use. Companies that make major investments, they can not usually fully fund its own resources. By taking out loans, investments can be leveraged in part. The acceptance of deposits and other assets for safekeeping and lending form the classical basis of a bank.

Economic functions of banks

The banks fulfill three major economic functions (see also: financial intermediary) Lot size transformation (also: Concentration function): Banks to create a balance between the supply of many relatively small deposits and the demand for large loans. Transformation of many of very small savings amounts to large credit packages. Provision of savings and credit needs of different time horizons. The banks achieved by pooling. A pool is ever the sum of the deposit and the sum of the loans.
Maturity transformation (also called extension function): The strict interpretation of the golden rule of banking is no longer in full, since a certain percentage of short-term deposits can be rented long term. During the period transformation following aspects to consider:
-Liquidity problems
-Income problems
-Interest rate risk
-Risk of a bank run

Risk transformation (also called confidence function): The depositor confidence in the care and expertise of the bank in lending, even in terms of risk diversification. Provision of savings and credit needs with different risk tolerance. This they achieved by:
-Portfolio Education
-Monitoring of credit
-Liability to equity
-Contracts with savers and borrowers

In the field of creation of money commercial banks play a role insofar as they feed through loans from the central bank money to the economic cycle, which is covered only partly by deposits. Through investment of capital with the central bank can escape the economic cycle money. Concerning the economical functions of banks, see: banking.

Bank History

The earliest precursor of modern banking is assumed in Mesopotamia. There, you probably already knew from the second century BC settlement of the accounts receivable, the accounting for deposits and loans, checks and change. Already in 1327, the Islamic hawala financial system from legal scholars Abu Bakr b. Mase-ud al-Kasani shown as the Institute of Islamic law. In Europe, the first pan-European banks flourished in the 13th Century, when Florence rose to a trading power and the local banking business to flourish especially began. As the original product wholesalers, commission agents or agents turned to the first bankers of the goods with the business-related credit and foreign exchange transactions, the banking business. One of the first and then the most important banking families were the Bardi, the Peruzzi and the Acciaiuoli from Florence. This entertained the early 14th Century offices in virtually all major cities of Europe and held de facto monopoly of the papal finances. When the English King Edward III. refused in 1345 to repay its Hundred Years' War by the accumulated debts, they ran into huge difficulties and eventually lost their influence. After the bankruptcy of the former main banking houses Vieri di Cambio de 'Medici 1348-1392 built an extensive bank has several branches in major European cities. Among his pupils and partners later, there was also his nephew, Giovanni di Bicci de 'Medici, who led the first store in Rome and took over the 1393rd While the once very successful bank of Vieri di Cambio de 'Medici, went down after his retirement of 1393, under the leadership of his two sons, his nephew, the bank was extremely successful. Two years after the death of his uncle moved Giovanni di Bicci de 'Medici to Florence in 1397 its activities and founded the Banco Medici. This was the basis of the subsequent rise of the Medici, one of the most powerful families of that time in Europe [1]. Founded in 1407 in Genoa, the Banco di San Giorgio. In contrast to the previous family houses bank, this bank was organized in a society like form. It is considered one of the oldest banks in the world and jointed long time unique in their way as Disconto and Beaming Bank. 1805 was closed by Napoleon after his seizure of power. 1462 Perugia in the first Monte di Pietà was founded, many more were in various Italian cities. These were independent. The Monte di Pietà had been in those days established by the Franciscans as pawnshops to provide financial support to such poor and needy people, while the former banking families like the Medici or Strozzi particularly the related with the trade business credit and exchange business dedicated. The 1472 as Monte di Pietà was founded in Siena Banca Monte dei Paschi di Siena is the oldest existing bank in the world. Banks have been necessary in a piece economy, as the achievements of the subjects under of money were exchanged. The mediators of these cash flows are the financial institutions. Furthermore, they ensure a balance between investment needs and credit needs. Credit institutions are obliged by reason of their importance in the business circle as a rule to a number of national and international legal and regulatory requirements (for example, the occupation of the management, in accounting, etc.), and are usually also the banking supervision by a specially competent authority.

Bank

A bank is a bank, the paid services for the payment and credit and capital offers. Depending on the type of a bank engaged in lending, management of savings, trade and the safekeeping of securities and - along with everything - in the case of a universal bank. In Germany, a bank in § 1 of the Banking Act is legally defined as a commercial company that conducts banking business. The total of all banks and the legal regulations in addition to as banking.