Greece's Piraeus Bank will raise more than 19.5 percent of the funds it needs to plug a 7.33 billion euro capital hole from private investors in a rights offering that ends later on Tuesday, a senior bank official told Reuters.
Piraeus is the third major Greek lender, after Alpha and National Bank, to raise at least 10 percent of its common equity issue from private investors, a requirement under a recapitalization program forbanks to stay privately run.
"Private sector take-up willbe more than 19.5 percent,near 20 percent," said a senior banker at Piraeus who declined to be named. Meeting the minimum threshold meansPiraeus will not need to resort to issuing costly contingent convertible bonds, or CoCos.
Tuesday 25 June 2013
Saturday 22 June 2013
UBS AG will surrender its Indian banking license and close its banking unit, covering fixed income, forex operations and credit services,
(Reuters) - Swiss bank UBSAG will surrender its Indian banking license and close its banking unit, covering fixed income, forex operations and creditservices, a source with direct knowledge of the matter told Reuters on Saturday.
However, UBS will continue its corporate client service business, which includes mergers and acquisitions, equities and debt capital market services, said the source, who declined to be identified as the information was not yet public.
"That doesn't mean that we are closing down our India operations. We will be closing a very small business unit, to focus on our key strength," said thesource. "It's part of our global strategy."
A UBS spokesman declined to comment.
UBS has a full-fledged banking license in India with a single branch in Mumbai and was focusing on the wealth management business, covering foreign exchange, fixed income and credit services.
Indian newspapers reported on Saturday that UBS would surrender its banking license.
Earlier this year, Morgan Stanley sold its private wealth management business to Standard Chartered, in a sign of growing consolidation of Asia's wealth management industry, which is struggling with rising regulatory costs and wafer-thin advisory fees.. (Reporting by Indulal PM; Editing by Clarence Fernandez)
However, UBS will continue its corporate client service business, which includes mergers and acquisitions, equities and debt capital market services, said the source, who declined to be identified as the information was not yet public.
"That doesn't mean that we are closing down our India operations. We will be closing a very small business unit, to focus on our key strength," said thesource. "It's part of our global strategy."
A UBS spokesman declined to comment.
UBS has a full-fledged banking license in India with a single branch in Mumbai and was focusing on the wealth management business, covering foreign exchange, fixed income and credit services.
Indian newspapers reported on Saturday that UBS would surrender its banking license.
Earlier this year, Morgan Stanley sold its private wealth management business to Standard Chartered, in a sign of growing consolidation of Asia's wealth management industry, which is struggling with rising regulatory costs and wafer-thin advisory fees.. (Reporting by Indulal PM; Editing by Clarence Fernandez)
Friday 7 June 2013
Basic elements of the unqualified audit report.
(a) Basic elements of the unqualified audit report.
Describe clearly the circumstances in which an adverse opinion and a disclaimer of opinion would be appropriate and give two examples, one each, to illustrate your answer. (A full audit opinion is not required).
1. Title
Audit reports should be addressed to the members of the company on whose behalf the audit is undertaken.
2. Introductory paragraph
It identifies the financial statements audited to distinguish such information from other documents that have not been subject to audit e.g. chairman’s report.
This paragraph also refers to the accounting convention under which the financial statements have been prepared.
3. Statement of responsibility of directors and auditors. This states that it is the responsibility of the directors to prepare financial statements that show a true and fair view.
4. Basis of opinion (scope paragraph)
Audit carried out in accordance with IAS, ISA and Company’s Act requirement and other statutory requirements.
5. A statement that the audit was planned and performed to obtain reasonable assurance that financial statements are free from material misstatements.
6. It should describe an audit as including:
a. Examining on a test basis evidence to support the financial statement amounts and disclosures.
b. Assessing the accounting policies used in preparing the financial statements
c. Assessing the significant estimates made by directors in preparation of financial statements.
d. Evaluating the overall financial statement presentation.
7. It should clearly state the auditor’s opinion as to whether the financial statements give a true and fair view in accordance with financial reporting framework and their compliance with statutory requirements. In particular whether the balance sheet and the profit and loss account show a true and fair view of the state of the financial position of the company and its financial performance.
8. It should date the report as of audit completion date i.e. when the auditor receives all evidence required to support his opinion.
9. It should be signed in the audit firm’s name and should name the audit firm office.
b) The ISA attempt to ensure that the report of the auditors is clearly understood by giving guidelines to auditors as to how the report should be constructed and what details it
Describe clearly the circumstances in which an adverse opinion and a disclaimer of opinion would be appropriate and give two examples, one each, to illustrate your answer. (A full audit opinion is not required).
1. Title
Audit reports should be addressed to the members of the company on whose behalf the audit is undertaken.
2. Introductory paragraph
It identifies the financial statements audited to distinguish such information from other documents that have not been subject to audit e.g. chairman’s report.
This paragraph also refers to the accounting convention under which the financial statements have been prepared.
3. Statement of responsibility of directors and auditors. This states that it is the responsibility of the directors to prepare financial statements that show a true and fair view.
4. Basis of opinion (scope paragraph)
Audit carried out in accordance with IAS, ISA and Company’s Act requirement and other statutory requirements.
5. A statement that the audit was planned and performed to obtain reasonable assurance that financial statements are free from material misstatements.
6. It should describe an audit as including:
a. Examining on a test basis evidence to support the financial statement amounts and disclosures.
b. Assessing the accounting policies used in preparing the financial statements
c. Assessing the significant estimates made by directors in preparation of financial statements.
d. Evaluating the overall financial statement presentation.
7. It should clearly state the auditor’s opinion as to whether the financial statements give a true and fair view in accordance with financial reporting framework and their compliance with statutory requirements. In particular whether the balance sheet and the profit and loss account show a true and fair view of the state of the financial position of the company and its financial performance.
8. It should date the report as of audit completion date i.e. when the auditor receives all evidence required to support his opinion.
9. It should be signed in the audit firm’s name and should name the audit firm office.
b) The ISA attempt to ensure that the report of the auditors is clearly understood by giving guidelines to auditors as to how the report should be constructed and what details it
US Jobless Rate Rises To 7.6% as Economy Adds 175,000 Jobs
WASHINGTON -- U.S. employers stepped up hiringin May, a sign the economy was growing modestly but not strong enough to convince the Federal Reserve to scale back the amount of cash it is pumpinginto the banking system.
The United States added 175,000 jobs last month, just above the median forecast ina Reuters poll, Labor Department data showed on Friday.
The unemployment rate ticked a tenth of a percentage point higher to 7.6 percent, with the increase actually giving a relatively hopeful sign as it was driven by more workers entering the labor force.
Still, after a winter in which the economy seemed to be turning a corner, May was the third straight month that payrolls outside the farm sector increased by less than 200,000. That could heighten concerns government austerity this year is sapping vigor from the economy, andmight dampen speculation the Fed might soon trim bond purchases aimed at lowering interest rates and boosting employment.
"The labor market may not be as strong as we thought," Kevin Cummins, an economist at UBS in Stamford, Connecticut, said ahead of the data's release.
Officials at the U.S. central bank have intimated they could be close to reducing bond purchases despite modest economic growth, which is not expected to pickup until late in the year when the sting from government spending cuts begins to fade.
Budget cuts have led to hiring freezes at many government agencies, and attrition could be slowly reducing payrolls. Government payrolls declined by 3,000 in May.
Lasting Damage
About 4.4 million Americans have been unemployed for more than six months, roughly 3 million more than pre-recession levels. The longer workers are out of a job , the greater the risk theybecome essentially unemployable. That could deal lasting damage to the economy and has lent urgency to the Fed's efforts to stimulate growth.
Still, May's pace of job growth is right around the average for the prior 12 months. Over that period, the jobless rate fell about half a percentage point and the ranks of the long-term unemployed declined by about 1 million people.
"It's progress that's too slow,but it's progress nonetheless," Guy Berger, aneconomist at RBS, also in Stamford, said before the data was released.
More: Suicide Rate Jumps, Economy To Blame?
Even the increase in the unemployment rate had a bright side. The share of the population in the labor force -- which includes people who are either employed or looking for work -- rose to 63.4 percent. That was driven by 420,000 workers entering the work force. Thatis good news because some of the recent drop in the jobless rate has been due to workers leaving the labor force, either because they retired, went back to school or gave up looking for a job.
The report showed the length of the average workweek held steady at 34.5 hours, although total hours worked in the economy ticked 0.1 percent higher.
At the same time, U.S. factories are feeling the pinch from Europe's debt crisis, which has sent a chill over the global economy. Manufacturing employment declined by 8,000 jobs last month.
After barely growing in the last three months of 2012, the U.S. economy expanded at a moderate 2.4 percent annual rate in the first quarter but lost momentum as the quarter drew to a close. Most economists look for growth of around 1.5 percent in the current quarter.Fed officials next meet June 18-19 and are widely expected to keep purchasing $85 billion in bonds a month. Many economists don't expect the job market to be strong enough for the Fed to beginscaling back its bond purchases before December.
The United States added 175,000 jobs last month, just above the median forecast ina Reuters poll, Labor Department data showed on Friday.
The unemployment rate ticked a tenth of a percentage point higher to 7.6 percent, with the increase actually giving a relatively hopeful sign as it was driven by more workers entering the labor force.
Still, after a winter in which the economy seemed to be turning a corner, May was the third straight month that payrolls outside the farm sector increased by less than 200,000. That could heighten concerns government austerity this year is sapping vigor from the economy, andmight dampen speculation the Fed might soon trim bond purchases aimed at lowering interest rates and boosting employment.
"The labor market may not be as strong as we thought," Kevin Cummins, an economist at UBS in Stamford, Connecticut, said ahead of the data's release.
Officials at the U.S. central bank have intimated they could be close to reducing bond purchases despite modest economic growth, which is not expected to pickup until late in the year when the sting from government spending cuts begins to fade.
Budget cuts have led to hiring freezes at many government agencies, and attrition could be slowly reducing payrolls. Government payrolls declined by 3,000 in May.
Lasting Damage
About 4.4 million Americans have been unemployed for more than six months, roughly 3 million more than pre-recession levels. The longer workers are out of a job , the greater the risk theybecome essentially unemployable. That could deal lasting damage to the economy and has lent urgency to the Fed's efforts to stimulate growth.
Still, May's pace of job growth is right around the average for the prior 12 months. Over that period, the jobless rate fell about half a percentage point and the ranks of the long-term unemployed declined by about 1 million people.
"It's progress that's too slow,but it's progress nonetheless," Guy Berger, aneconomist at RBS, also in Stamford, said before the data was released.
More: Suicide Rate Jumps, Economy To Blame?
Even the increase in the unemployment rate had a bright side. The share of the population in the labor force -- which includes people who are either employed or looking for work -- rose to 63.4 percent. That was driven by 420,000 workers entering the work force. Thatis good news because some of the recent drop in the jobless rate has been due to workers leaving the labor force, either because they retired, went back to school or gave up looking for a job.
The report showed the length of the average workweek held steady at 34.5 hours, although total hours worked in the economy ticked 0.1 percent higher.
At the same time, U.S. factories are feeling the pinch from Europe's debt crisis, which has sent a chill over the global economy. Manufacturing employment declined by 8,000 jobs last month.
After barely growing in the last three months of 2012, the U.S. economy expanded at a moderate 2.4 percent annual rate in the first quarter but lost momentum as the quarter drew to a close. Most economists look for growth of around 1.5 percent in the current quarter.Fed officials next meet June 18-19 and are widely expected to keep purchasing $85 billion in bonds a month. Many economists don't expect the job market to be strong enough for the Fed to beginscaling back its bond purchases before December.
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