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A.It is a feature of different balance sheet structures.
They change from day to day and are hard to harmonize given the range of accounting standards and balance sheet structures across the region.
Consistent with prior research, banks, insurance companies, holding companies, leasing and property companies, and financial service firms, all classified in the two-digit Global Industry Classification Standard GICS Groupup 40, were excluded from the sample because they are subject to accounting rules that differ and have differences in their balance sheet structures.
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And like Pfizer's, these companies' assets were very risky a fact often obscured by the companies' balance sheet structure.
"We have further strengthened our capital base and have improved our balance sheet structure to meet future regulatory requirements".
Management should utilize the results of the credit union's IRR measurement systems in making operational decisions such as changing balance sheet structure, funding, pricing strategies, and business planning.
The policy should be consistent with the credit union's business strategies and should reflect the board's risk tolerance, taking into account the credit union's financial condition and risk measurement systems and methods commensurate with the balance sheet structure.
One case in point: regulators allowed banks to reduce their risk capital by using off-balance sheet Structured Investment Vehicles, even though banks had an implied or explicit agreement to stand behind the assets held by these SIVs.
Many directors evidently do not know whether their companies have the kind of complicated off-balance-sheet structures that contributed to the collapse at Enron.
Banks themselves engaged in a binge of creating off-balance-sheet structures, most notably with so-called SIVs (structured investment vehicles).
It won't be so quick and easy to repair the damage done to complex credit, off-balance-sheet structures, the Fed's big rate cut notwithstanding.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com