A Presentation on:Generations of Accounting

ReportsBy:

Alina DangolChhitiz ShresthaLeeza Shrestha

Financial Information System Instructor

Ace Institute of ManagementFaculty of Management

Pokhara University

Accounting reports reflect the performance of an organization

The purpose of the financial reports is to show the reader the financial position, financial performance and cash flows of a business

Accounting reports are important to: Business Owners Investors Bank Suppliers Government

Introduction

One of the leading commercial bank in Nepal

Successfully completed 28 years of service since July 12 1984

The bank has expanded its outreach across 72 districts of the country through a network of 48 branches

Uses Finacle as its core information management system

Introduction to Nabil Bank LTD

Established in 1986 as a joint venture between Nepalese and French partners

Also a leading banking venture in Nepal

Use of Finacle as its core information management system

Introduction to Nepal Investment Bank LTD.

CBS stands for Core Banking Solution or Centralized banking solution

CORE stands for "centralized online real-time exchange“

Finacle is designed with service-oriented-architecture(SOA)

It is a multi channel, multi currency & multi country enabled technology

Finacle

Computerized recording system from Infosys that empowers banks to transform their business leveraging technology

Addresses the core banking, e-banking, treasury, and wealth management, CRM, and cash management requirements of retail, corporate and universal banks worldwide

Nepalese accounting standard which is simplified version of international accounting standard is used for the computerized accounting package used for Finacle

Finacle

To analyze the various types of Financial reports in the context of two Nepalese banks, namely: Nabil Bank LTD Nepal Investment Bank LTD

To analyze the impact of Financial Information system software like Finacle on those reports

To examine the contribution of MIS softwares in the respective banks on financial reports prepared in the present day.

Objectives

On the basis of Frequency Daily Monthly Quarterly Semi Annually Annually

Bases of Accounting Reports

On the basis of Nature Trial Balance Ledger Income Statement Balance Sheet Cash Flow

Statement

Cash Vault Report Cash that a bank keeps in its vault

for daily transactions such as check cashing or cash withdrawals.

It is considered part of a bank's reserve obligation

Finacle is used to calculate how much money remains at the end of the day in the cash vault.

Without the help of Information system software like Finacle, It would be a difficult to keep track of inflow and outflow of cash.

Types of Report (Daily)

Other daily reports include: CCOD history Limit, Outstanding, Overdraft,

Balance Functioning status of ATM ATM switch report Office accounts supplementary Cash summary (teller wise) System Generation Transaction report Day book GL report

Types of Report (Daily)

Income Statement It reports its earnings and expenses for a given

period of time, typically by the month Finacle is not used to calculate the monthly

report like the income statement. It is calculated by collecting information from

all the branches of Nabil or Nepal Investment from all over Nepal.

After that the information is relayed to the Head Office.

Then the head office calculates monthly income statements separately which also helps to calculate the annual report.

Types of Report (Monthly)

The quarterly report consists of aspects like: Unaudited Financial Reports Related Party Disclosure Management Analysis Details related to legal proceedings Analysis of bank’s shares transaction Problems and challenges Corporate Governance

Types of Report (Quarterly)

Semi-annual Report Documents that cover the financial

activity of a business or other entity for a period of less than one calendar year.

an interim financial statement is issued to cover a six-month period of activity

While the structure of the reports included in a statement of this type will follow generally accepted accounting principles, the information is usually unaudited

Types of Report (Semi-annual)

Annual Report An annual report is a comprehensive report on

a company's activities throughout the preceding year intended to give shareholders and other interested people

information about the company's activities and financial performance.

Typical annual reports will include: Accounting policies Balance sheet Cash flow statement Contents: non-audited information Profit and loss account Notes to the financial statements

Types of Report (Annual)

Accounting listing that shows the beginning and ending balances for all accounts included in the set of books

This worksheet format makes it possible to evaluate whether or not the total debits for the period cited are in balance with the total number of credits generated for the same period

When a true trial balance exists, the total credits and total debits will be equal.

Types of Report (Trial Balance)

Also commonly referred to as an accounting ledger, it is a primary accounting record used by a business to keep track of all the financial transactions the company makes

All financial transactions, debits and credits, are recorded, or "posted," in the general ledger

Types of Report (Ledger)

Financial statement that provides an analysis of the influx of revenue from various money making endeavors on the part of the company

Includes revenue sources such as billed income from the central operation process, investments made on the part of the corporation, and any financing activity engaged during the period cited

The idea is to provide the basis for an overall picture of how cash flow generated by the company is doing with handling the outstanding expenses incurred during operation

Types of Report (Cash Flow Statement)

Double Entry Accounting Technique which records each transaction as both a credit and

a debit. Credit entries represent the sources of financing, and the debit

entries represent the uses of that financing. The process of recording each transaction twice - as an asset

and a liability - in order to be able to set out balances showing the financial state of the business at a particular moment in time.

Financial Information System with Finacle

The accounts section staff records this entries as follows: Type TM IN MENU OPTION AND PRESS ENTER TYPE A AND PRESS F4 type T/bi and press F4 type the account number(advertisement) and press F4 type the amount (10,000)and press F4 Type D and press F4 Type the narration Why the advertisement account was debited and Press F4. Press down arrow and continue credit transactions as same type the account number(Debtor’s a/c) and press F4 type the amount (10,000)and press F4 Type C and press F4 Type the narration Why the debtor’s account was credited and Press F10. Now DC number is generated which is reference number for this transaction.

Financial Information System with Finacle

Transaction Maintenance in Finacle

At the beginning of the day, the head teller distributes certain amount to every cash teller. The inward cash and outward cash are recorded by every cash teller

Head teller can access to every transaction that has been recorded by tellers. At the end of the day the head teller counts the cash-in-hand in each teller and matches the amount with the total balance of the teller’s account.

Go to Menu and type FTR Type Gen and then User ID Type DATE and TIME Type Print. Transaction list of that day is printed. The total balance in list is

matched with Cash-in-hand.

Balance Day Adjustments

Process of Generating the Report The reports can be created through ‘REPORT

SERVER’. Menu Option - MISREP, Enter Put in ‘Report Class’ - RETAIL. Press F4 Press TAB or enter to go to next field. Put RTLDOC and enter to go to next field Put SCHEME CODE and F4 System will generate report in ‘Background’ Go to main menu and put ‘ PR’ and enter. Then view or take printout accordingly. Note : Ensure ILINK in open status.

Process of Report Generation

Process of Report Generation

Step 1 Step 2

Process of Report Generation

Step 3 Step 4

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