Users of financial reports with a robust understanding of How Fair Value Accounting works in theory and in relatively simple contexts: How users can analyze the information with context to Banks as well as financial Institution. Fair Value Accounting and Disclosures to assess their:

a) Solvency and profitability better than is possible using amortized cost accounting information (use solvency and profitability ratio from balance sheet)

b) Discretionary Gain Trading (use disclosures and the assessment of Gain Trading)

Required

a) Calculate Solvency and Profitability ratio from balance sheet of any bank or financial institution

b) Calculate Gain or Losses from securities use banks or financial institutions

Hints to understand the above question

(That is timing of the sale of securities and other financial instruments recognized at amortized cost to realize gain or losses and thereby manage income and book value) Use the Financial Statements of the Bank for explanation -Balance sheet for statistical example