Page 34 - CAPE Financial Services Syllabus Macmillan_Neat

UNIT 1
MODULE 3: GOVERNANCE, REGULATIONS AND ETHICS (cont’d)
SPECIFIC OBJECTIVES
Students should be able to:
11. explain the importance of
incorporation and licensing of
financial centres;
12. describe capital adequacy as
developed by the Bank of
International Settlements (BIS);
13. explain the importance of
accounting standards within
financial centres;
CXC A38/U2/16
CONTENT
(a) The concepts of incorporation and
licensing of a bank (Both onshore and
offshore).
(b) The process of incorporation and
licensing.
(c) The importance of each in offshore
banking.
(a) The concept of capital adequacy.
(b) The principles of capital adequacy
within the Caribbean.
(c) The systems to monitor capital
adequacy: Basel Accord- Basel I, II and
III).
(a) The role of the bodies or agencies such
as International Accounting Standards
Board (IASB) and Financial Accounting
Standards Board (FASB) in financial
centres.
(b) The role and significance of United
States of America Generally Accepted
Accounting Principles (US GAAP) and
the International Financial Reporting
Standards (IFRS) as it relates to
presentation of financial reports.
(c) The convergence between
International Financial Reporting
Standards (IFRS) and the United States
of America Generally Accepted
Accounting Principles (US GAAP) and
their conceptual frameworks.
(d) The reasons for the convergence of
the International Financial Reporting
Standards (IFRS) and the United States
of America Generally Accepted
Accounting Principles (US GAAP
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