<p>The new accounting standards IFRS and IAS was implemented in January 2005, the purpose was to harmonize accounting standards world wide. As a result of these new rules the real estate companies are allowed to appraise real estates assets at market value. It has long been debated whether this appraisal fulfils the requirements for relevance, reliability and comparability.</p><p>The paper attends to how banks control the information given by the real estate companies in the process of credit granting. As an introduction we describe the purpose of accounting and the problematic´s about appraisals with market values. Further on there is a discussion on which factors are taken into consideration when banks grant credits.</p><p>The study is built on interviews at three different commercial banks. At each bank one bank advisor was interviewed, the respondent were given specific questions and at the same time were free to speak openly about the subject.</p><p>In conclusion all banks focus on the real estates companies ability to repay the bank credits with revenues from the investment. With the focus on reimbursement banks will minimize the risk of credit losses and thereby decrease the risk of history repeating itself with new bank crisis. Besides the ability to repay credits banks also consider the fact’s, who is leading the company and how this owner has conduct prior businesses. In comparison whit theory and empirics all banks, in there credit granting process, fulfil the requirements for relevance, reliability and comparability. In summary the banks do not consider real estates valued at market prices as a problem in there assessments.</p>

Nedgångar i världsekonomin med påföljande likviditetsproblem hos företag har medfört negativa konsekvenser för banker, vilket skapade behov av effektiv kreditriskhantering. För att förhindra stora kreditförluster försöker banker ständigt minimera sina risker vid kreditgivning genom att identifiera fallgropar. Syftet är att undersöka vilka faktorer som bidrar till kreditförluster och belysa hur Nordea kan minimera risker vid kreditgivning utifrån dessa faktorer. Datainsamling skedde via granskning av litteratur och en fallstudie. Studieobjektet var affärsbanken Nordea där det genomfördes flera intervjuer med kreditansvariga på en regional nivå. För att ta reda på utvecklingen av kreditvolym inom Sverige sammanställdes data utifrån kreditgivningsstatistik från Nordea Hypotek AB. Enligt teorin är kreditförluster beroende av direkta och indirekta faktorer. Medan de direkta faktorerna kan påverkas av en kreditanalytiker ligger de indirekta faktorer utanför dennes inflytande. Det kan konstateras att Nordea har lyckats minimera kreditrisker i avsevärd grad med reservation för vissa förbättringar och att de faktorer som förorsakar förluster har banken klarat av att hålla under kontroll. Bankens grundläggande strategi i riskhanteringen är att använda sig av förnuftig kreditgivning. Samtliga respondenter har betonat vikten av att göra grundliga utredningar vid nya kreditansökningar samt frekventa uppföljningar vid en föraning på betalsvårigheter hos befintliga kredittagare. Genom dessa rutiner kan banken fånga upp problematiska affärstransaktioner och förebygga uppkomsten av kreditförluster. / Turbulence in the world economy with following liquidity problem in enterprises has lead to negative consequences for banks that creates a need for effective credit risk management. To prevent significant credit losses, banks tries constantly to minimize their risks in credit granting through identifying pitfalls. The purpose is to investigate the factors that contribute to the credit losses and illustrate how Nordea can minimize risks in credit granting. Data were gathered from the literature review and a case study. The object of study is the Swedish Business Bank Nordea where several credit managers has been interviewed at the regional level. To obtain a volume of credit development in Sweden, gathered the credit granting statistics of the source of Nordea Hypotek AB. According to the theory credit losses are depending on direct and indirect factors. While direct factors can be affected by a credit analyst, indirect factors are outside of his influence. It can be stated that Nordea has been succeed in minimizing of risks at the considerable degree, with reservation for some improvements, and that some factors that cause losses the bank manage to keep under control. Bank´s fundamental strategy in risk management is to use reasonable credit granting. All of respondents have stressed the importance of thorough inquiry on new credit application and frequent following up suspicions of payment difficulties with existing borrowers. Through these routines can bank capture problematic business transactions and prevent appearance of credit losses.

The new accounting standards IFRS and IAS was implemented in January 2005, the purpose was to harmonize accounting standards world wide. As a result of these new rules the real estate companies are allowed to appraise real estates assets at market value. It has long been debated whether this appraisal fulfils the requirements for relevance, reliability and comparability. The paper attends to how banks control the information given by the real estate companies in the process of credit granting. As an introduction we describe the purpose of accounting and the problematic´s about appraisals with market values. Further on there is a discussion on which factors are taken into consideration when banks grant credits. The study is built on interviews at three different commercial banks. At each bank one bank advisor was interviewed, the respondent were given specific questions and at the same time were free to speak openly about the subject. In conclusion all banks focus on the real estates companies ability to repay the bank credits with revenues from the investment. With the focus on reimbursement banks will minimize the risk of credit losses and thereby decrease the risk of history repeating itself with new bank crisis. Besides the ability to repay credits banks also consider the fact’s, who is leading the company and how this owner has conduct prior businesses. In comparison whit theory and empirics all banks, in there credit granting process, fulfil the requirements for relevance, reliability and comparability. In summary the banks do not consider real estates valued at market prices as a problem in there assessments.

Purpose: To investigate whether or not the credit granters believe the quality in audits will deteriorate after the abolishment of statutory audit and, if that is the case, how the abolishment will strike the purpose and goal of accounting. Approach: To answer our purpose we carried out a literature study to later implement interviews with four granters of credits specialised in business accounts. Findings: The process of credit granting will not change after the abolishment of statutory audit for companies still using audit reports. Though, for other companies the process will change dramatically since the lean time of the process will increase. Higher demands will be put on these companies since the reliability in the economic information will decrease when it is no longer being reviewed in the same sense. Though, the credit granters believe that some form of substitute for audit will be demanded in order for the companies to be granted credits from the bank.

This study concerns the implications of the discretion in the cut-off point in the accounting method for research and development. Our research problem targets the issues to reduce the existing research gap: - "Does the choice of accounting method for research and development matter when a creditor evaluates a company for a credit granting decision?" - "How does the accounting method for research and development matter in a credit granting decision?" Our study aims to answer these questions by investigating and analyzing the credit granting assessment and by interviewing creditors at the major banks in Sweden. Fictitious case scenarios provide in-depth information about how the accounting methods matter for a credit granting decision. We develop this study by gathering existing material regarding accounting standards, the accounting method and the credit granting assessment. Previous studies about credit granting and the accounting methods supplement the theoretical material. The approach to this study is a hermeneutic approach that tries to grasp the entire picture of the respondents' opinion about the accounting methods. To gain detailed and extensive information from the respondents, we use a qualitative research with semi-structured interviews. The research sample consists of experienced creditors at the largest banks in Sweden. This is to ensure relevant and informative answers on our questions. We utilise the four case scenarios to encourage the respondents to elaborate upon the accounting methods for R&amp;D. This provides detailed knowledge about how the accounting methods matter for a credit granting decision. The respondent states that abnormal values in the R&amp;D account are suspicious and that investigation and adjustments of these values occurs if necessary. From this summarised statement, we draw the conclusion that the accounting methods for R&amp;D matter in a credit granting decision. However, we also establish that other factors are more influential on the decision. Furthermore, we find that the creditors examine the content of the R&amp;D account because the methods and its content have different impact on the financial statements. The expense method indicates a negative impact on the credit granting decision if the company cannot carry the costs, while the recognition method gives an appearance of stronger financial statements. However, the recognition method also gives rise to suspicions if the company relies on previous achievements. We conclude that depending on the amount of R&amp;D both methods can be perceived as an advantage and a disadvantage for a credit granting decision, however, our main finding suggests that a revaluation of the abnormal values in the R&amp;D account occurs. From the support of our findings, we believe that our research has accomplished the objective of the study and we therefore believe that we have contributed to the existing knowledge in the subject.

Sammanfattning Titel: Redovisningsinformationens betydelse vid kreditbedömning av små och medelstora företag. Nivå: C-uppsats i företagsekonomi. Författare: Annelie Engström och Christian Mattsson. Handledare: Ann W Dörner. Datum: Juni 2012. Syfte: Syftet med denna studie är att undersöka hur kreditgivare använder sig av redovisningsinformation vid kreditbedömningen av små och medelstora företag. Forskningsfrågorna är: Stämmer redovisningsinformationen överens med kreditgivarnas behov av information vid kreditbedömning av små och medelstora företag? Vilka delar av redovisningsinformationen är viktiga vid en kreditbedömning av små och medelstora företag? Metod: I denna studie används en mixad metod vilket innebär att en kvantitativ metod används vid insamling av data och en kvalitativ metod vid analyseringen av data. Empirisk data har samlats in med strukturerade frågeformulär med fasta svarsalternativ som skickats ut till respondenterna. Sekundärdata har sökts fram ur relevant litteratur, artiklar och tidigare undersökningar. Resultat och Slutsats: De flesta kreditgivare är nöjda med den information som ges. Balans- och resultaträkning är de viktigaste rapporterna vid en kreditbedömning. Rörelseresultatet är den viktigaste resultatposten, kassalikviditet och soliditet är de viktigaste nyckeltalen. Förslag till fortsatt forskning: Följande två frågor har uppkommit under arbete och föreslås därmed som ämnen till framtida studier. Vilken redovisningsinformation saknar kreditgivare och vad skulle de vilja förbättra i den nuvarande informationen. Revisionspliktens betydelse vid kreditbedömning. Uppsatsens bidrag: Denna uppsats utreder vilka av årsredovisningens delar som är viktiga vid kreditbedömning. Detta kan vara till hjälp för att utveckla bedömningsunderlag för framtida rapporter. Nyckelord: Kreditbedömning, kreditgivning, redovisningsinformation, årsredovisning, finansiella rapporter / Abstract Title: The relevance of accounting information in the credit-granting process concerning small and medium firms. Level: Final assignment for Bachelor Degree in Business Administration. Authors: Annelie Engström and Christian Mattsson. Supervisor: Ann W Dörner. Date: June 2012. Aim: The purpose of this study is to examine how creditors use accounting information in the credit-granting process concerning small and medium-sized firms. The research questions are: Does the provided accounting information fulfill the creditor’s needs of information in the credit-granting process of small and medium-sized firms? What parts of the accounting information is important in the credit-granting process of small and medium-sized firms? Method: The design of this study is both quantitative and qualitative in nature. The primary data is collected by a quantitative method. To obtain empirical data, structured questionnaires have been sent out with fixed response alternatives to the respondents. Secondary data, have mainly been taken from literature, articles and previous studies. Result and Conclusions: Not all but most creditors are satisfied with the provided information. The balance sheet and the income statement are the most important reports when credit-granting decisions are to be made. The operating profit is the main performance record and cash liquidity and solvency are the most important ratios. Suggestions for future research: Two questions arose during the study and is thereby suggested as topics for future studies. What are the creditors missing in today’s accounting information and what needs improvement? The mandatory auditing importance of credit-granting. Contribution of this thesis: This paper investigates which parts of the Annual Report that is important for credit-granting. This may help to develop the assessment basis for future reports. Key words: Granting of credit, credit process, accounting information, annual report, financial reports

In recent years, there is a significant change in consumers¡¦ cognition and values owing to the transition of financial conditions, and a sort of more diversified financial service is demanded to cater for their needs. Since the openness of financial market in 1990, our human resources of professional intellect never reach the anticipated level of advance because no appropriate regulation on the running tactics of financial institutions is made, besides the want of foresighted projects on financial market, ethical climate in financial institutions, definite and concrete reconstruction of organizational commitment. As a result, financial proprietors surged into the market upon the openness, forming a superficial feature of flourishing development; on the other hand, the deteriorating competition behind the prosperity causes trust-granting quality to go down and consequently the rate and amount of overdue loan to go higher and higher. In the meanwhile, the opportunities of nationally economic development get corrupted. Many researches prove the ethical climate and organizational commitment do have effect on organizational citizenship. This research is aimed to find out the degree the trust-granting staff¡¦s ethical climate and organizational commitment influence the organizational citizenship by studying the personal characteristics and position properties. It also expects follow-up researches will further probe into the difference and correlation between the ethical climate and organizational commitment of the trust-granting staff with the final say in order to build more positive and active ones, so as to enhance a more positive trust¡Vgranting attitude and behavior. Taking trust-granting staff of financial institutions in Kaohsiung-Pingtung area as subjects, this research gave out 125 copies of questionnaire and recovered 120 effective. With fidelity analysis, descriptive analysis, factor analysis, single factor variance analysis, Pierson correlation analysis, and typical correlation analysis, we can conclude as follows. 1. Subjects¡¦ research variances are: (1) Ethical climate: legislative orientation, care orientation, and independent judgment. (2) Organizational commitment: affectional commitment, continuous commitment, and moral commitment. (3) Organizational citizenship: the manifestation of both cognition or attitude in terms of sticking to own duty and organizational public welfare lies above the medium or high levels. 2. Based on personal characteristics or position properties, the subjects who have highest manifestation in their cognition and attitude in each dimension are: (1) Legislative orientation: female, 40~49 years old, single, under junior college, incumbent clerk. (2) Care orientation: male, over 50 yeas old, married, above university, director. (3) Independent judgment: male, over 50 years old, married, under junior college, incumbent clerk. (4) Affectional commitment: male, over 50 years old, married, above university, director. (5) Continuous commitment: male, 30~39 years old, married, over university, former director. (6) Moral commitment: female, over 50 years old, married, under junior college, director. (7) Sticking to own duty: female, over 50 years old, married, under junior college, director. (8) Organizational public welfare: female, over 50 years old, married, under junior college, director. 3. The research variances that have apparent correlation: (1) legislative orientation: care orientation, affectioal commitment (2) Care orientation: independent judgment, affectional commitment, moral commitment. (3) Independent judgment: moral commitment (4) Affectional commitment: moral commitment (5) Continuous commitment: moral commitment (6) Sticking to own duty: organizational public welfare, legislative orientation, care orientation, affectional commitment, moral commitment (7) Organizational public welfare: affectional commitment, moral commitment. 4. Both ethical climate and organizational commitment have an obvious correlation with organizational citizenship. According to the conclusions, we recommend the following suggestions: 1. To financial institutions: (1) Carrying out internal legislative curriculum and drills; (2) Carrying out external legislative and related case curriculum and drills; (3) Appointing with discretion the managerial personnel of operating units; (4) Cultivating staff¡¦s team spirit; (5) Reconstructing the financial ethics of discipline and order. 2. To succeeding researchers: (1) Broadening the researching samples; (2) Studying the attitude of incumbent and former managers¡¦ ethic climate and organizational commitment toward the trust-granting acts.

The borrowers in the mortgage market consist of both households and companies. Themain source for financing a property weather it is a private property or a real estateproperty is a mortgage. When granting a mortgage the bank incurs a risk. It is importantfor banks to minimise the risk since an unstable market can affect not only the bank andits customers but society as a whole. This thesis concerns the credit granting processand the difference in credit granting for households and companies and if there is aneed of a difference between the processes.The research method used for this report is a deductive approach with qualitativeresearch performed through in-depth, face-to-face interviews. As the number of banksin question is small we have used a case study approach which is suitable as focus lies onthe processes rather than the outcome of credit granting.The assessment of creditworthiness and repayment ability is the most important factorsof the credit granting processes for both parts of the market. There are differencesbetween the credit granting processes between the different parts of the market. Whenassessing the creditworthiness and repayment ability of a company there are moreparameters to evaluate. The mortgage amount for a real estate is greater than the one ofa private property and the private part of the market is regulated to a greater extent. Thefocus on the private part of the market is consumer protection and on the corporatepart the banks credit risk. Differences between the processes are needed for the bank tobe able to assess the creditworthiness and repayment ability for both households andcompanies in debt to decrease their credit risk. / Låntagarna på bostadsfinansieringsmarknaden består av både privatpersoner ochföretag. Bostäder finansieras oftast av banker oavsett om det är ett privat bostadsköpeller ett fastighetsköp. När banker beviljar ett lån utsätts de för en risk. Det är viktigt förbankerna att minimera kreditrisker eftersom en ostabil marknad kan påverka inte barabanken och dess kunder utan även samhället. Denna kandidatuppsats handlar omkreditgivningsprocessen och dess skillnader mellan privatpersoner och företag och omdet behövs en skillnad.Forskningsmetoden vi använt oss är en deduktiv ansats, men kvalitativa undersökningargjorda genom djupgående, personliga intervjuer. Eftersom det enbart var ett fåtal bankermed i underökningen valde vi att använda oss av en fallstudie, det var passande då fokusligger på kreditgivningsprocessen och inte utkomsten av densamma.Bedömningen av en kunds kreditvärdighet och återbetalningsförmåga är grunden förkreditgivningsprocessen för båda delarna av marknaden. Det finns skillnader mellankreditgivningsprocessen mellan privatpersoner och företag. När kreditvärdigheten ochåterbetalningsförmågan bedöms för ett företag är det fler parametrar som måstebedömas. Ett fastighetslån uppgår ofta till ett högre värde än ett bostadslån ochprivatsidan är till en större del styrd av lagar. Fokuset på privatsidan ligger påkonsumentskydd medans företagssidan är mer inriktad på bankens minimering avkreditrisk. Skillnaderna i processerna är nödvändiga på grund utav att banken måstekunna bedöma kreditvärdigheten och återbetalningsförmågan ordentligt för attminimera sin kreditrisk.

The theoretical part of the thesis deals with economic theories relating to the unprofitable sector, definition and segmentation of public sector, and description and classification of unprofitable associations. Next there is detailed information about foundation -- legislative definition of terms, laws and obligations, as well as information about foundational mutual fund and foundation activities in practice -- a description of granting procedure. The practical part deals with analysis of tender procedure to foundation subsidy allocation at five chosen foundations. The way of evaluation of received applications is examined in detail, and then comparison of process is accomplished. The ending contains proposed procedure presenting optimal concept of open and transparent tender.

No description available.