Accounts in the Balance Sheet and Income Statement of the Bank of Abu Assignment

Accounts in the Balance Sheet and Income Statement of the Bank of Abu Dhabi - Assignment Example Overall the bank’s statements reflect the quality of the bank's operations. Although there can be a few improvements in the operations of the bank and its customer base, however, the bank has performed remarkably well showing high revenues and net profits. The National Bank of Abu Dhabi was founded in 1968 in the United Arab Emirates. It is the market leader amongst lending banks in the Emirate of Abu Dhabi and the second largest player in the United Arab Emirate lending market. The bank has a presence in various regions including Hong Kong, Shanghai and Kuala Lumpur. The National Bank of Abu Dhabi is a premier bank offering the complete range of financial services in 18 countries. It is ranked in the Worlds 50 Safest Banks and the Safest Bank in emerging banks. This is a testament to the quality of the services and the operations of the bank. This assignment aims to analyze the balance sheet and income statements of the bank for the year 2012 and 2011. All accounts under assets, liabilities, equity, expenses and revenue will be defined and analyzed in this report. An asset on a balance sheet represents what a firm owns. They can be categorized as current assets and fixed assets. Current assets are ones that are consumed in a years’ time and the fixed assets are those that provide benefit over a certain period of time. I will now be defining the assets that are in the financial statements of the National Bank of Abu Dhabi. This account includes all the cash that is currently with the bank, the balances with the central bank and the dues from other banks (maturing within 3 months). Cash is the most liquid of all the current assets. The balance at the central bank is a percentage of the total customer deposits given to the central bank as a measure of avoiding bank runs. These are identified as financial assets which are held for the purpose of trading them in the market. are assets measured at fair value and the gains and losses are recorded in the income statements under the subheading of â€Å"Gains or Losses on Derivative Financial Instrument Transactions†.