China Banking System. Comparison between State-owned Banks and Essay

China Banking System. Comparison between State-owned Banks and Joint-Stock Commercial Banks - Essay Example It is anticipated that these reforms will have an impact on the efficiency and performance on China’s banks. Moreover, emphasis is placed upon investigating the diversity of efficiency levels between different types of banks (SOBs and JSCBs) Analysis Considering economics, the theoretical construction representing an economic process, basing on a set of variables and logical sets as well as relationships which are quantitative, can be defined as a model. A model in economics is a backdrop which is simplified thus complex processes is illustrative. Mathematical terms are not always put to use in the model. Measurements that are structural are inclusive in economic models. In model classes, parameters that underlies are structural ones. Creation of various properties comes from the changing of various parameters. Fitting, investigation and theorizing are examples of uses of model methodologically. Functionalism of economic models is in the simplification of abstraction of data under observation. The models used in selecting data, basis on sets of assumptions on the study of econometrics. As a result of ambiguity of processes in economics, simplification is necessary. Complexity in economics is due to a variety of economic activities determining factors. Diverse economic factors are in inclusive of; cooperative and individual decision making, limitation of resources, hindrances’ due to geographical and environmental factors, requirement from legal personality and institutional based laws, and random fluctuations. Thus, the making of decisions by economists, on what bases information analysis takes place and their presentation. Selection of the economic model to use is to be done on the bases of the facts economists are tabling and on their compilation. The measurement of inflation which is a concept in economics requires a behavioral model. This is for differentiation of real changes and price changes, thus inflation attributable changes in price. Models in use include; forecasting which logically relate conclusion to assumptions, proposal of policies in economics for the modification of future economic activity, is also a model, presentation of reasonable arguments for political justification of policy nationally, is also a model in use. Planning and allocation in economies that are centrally in the plan used in economic modeling is also under consideration. Predictive models in finance are in uses for a long time in trading. There is bond trading on economic bases for growth prediction in developing countries that issue them. Models in management of risk are in incorporation for economic relationships, among variables under simulation for detection of high-exposure scenarios in the future. Argumentative frameworks in application of logic are under establishment. Independent discussion and testing for mathematical application is in the application . In supporting models, arguments and policies relying on economic models have clear bases relating to soundness (Heffernan, 2009). Currently, models in economics in use do not show pretence basing on the â€Å"everything economic theories.† Pretensions under scrutiny overwhelmingly receive prevention from occurring, by computation activities that

Convergence from GAAP to IFRS Essay Example | Topics and Well Written Essays - 1000 words

Convergence from GAAP to IFRS - Essay Example The paper will further discuss the benefits, which will accrue to United States firms, investors, and the economy as a whole, as a result of converging from United States Generally Accepted Accounting Principles to International Financial Reporting Standards. Convergence from Generally Accepted Accounting Principles to International Financial Reporting Standards Currently, International Financial Reporting Standards are used by more than 12,000 companies in the world and have been in use in over 100 countries around the globe. According to Kaiser et al. (2012), there are various ongoing projects, which were initiated by the International Accounting Standards Board and the Financial Accounting Standards Board with an aim of enhancing the International Financial Reporting Standards and America Generally Accepted Accounting Principles, and eventually making the principles fully compatible. Majority of these projects covers the key components of the financial reports. Through these proje cts, the boards plan to enhance financial disclosure information for shareholders while also aligning U.S. GAAP and international bookkeeping standards. Revenue recognition, financial instruments, and leases are deemed as the priority projects largely as a result of existing difference of IFRS and U.S. GAAP and the necessity for enhancements, especially in the principles they are intended to replace. The boards have also concentrated on financial reports presentation and consolidations projects due to considerable implications they might have (Kaiser et al., 2012). According to Henson (2012), in late 2011, SEC Chief Accountant, James Kroeker, indicated that considerable progress had taken place on numerous IASB and FASB Memorandum of Understanding convergence projects encompassing other comprehensive financial and income reporting fair value guidance. In January 2012, the chairman of IASB, Hans Hoogervorst acknowledged that International Financial Reporting Standards pose several ch allenges for the SEC. U.S. uses a sophisticated, mature and time stated set of bookkeeping standards, and this makes it difficult to make the convergence decision. In June 2012, IASB and FASB agreed on lease bookkeeping model where all leases with a period of one year or more would be reported on the balance sheet. Hans Hoogervorst indicated that the two boards anticipate completing the convergence project by year 2013 (Henson, 2012). The considerable progress in the convergence projects requires the United States companies, to start examining the implications of the convergence on their operations. This would enable companies to plan how to adopt the changes, which will arise from the convergence. This implies that, at the beginning of 2014, the U.S. public traded corporations might be obligated to file financial reports with the SEC using the International Financial Reporting Standards. In my opinion, it is beneficial for the United States to converge from America Generally Accept ed Accounting Principles to International Financial Reporting Standards. The convergence has various challenges and advantages. The challenges facing the transition may be addressed appropriately by all stakeholders involved in the convergenc