5.Bank Al-Islami enters into a Mudhrabah contract with Mr. Sultan, where the bank agrees to provide the full capital required for the enterprise. However, as part of the terms of the contract, the Bank contributes 70% of the capital in cash for the enterprise and the remaining 30% will be sourced from an existing debt from a third party. Is this contract valid? Please elaborate.

Q: 120-is a contract between a firm and its debt providers where the firm agrees to refrain from…

A: The debt holders are the lender from where the firm has borrowed the money for the specified time at…

Q: What risks an Islamic financial institution may face in a Salam contract, and how can these risks be…

A: Salam contract is commonly known as Bai-Al Salam. It is the acquisition of an item for conceded…

Q: The Sohar Port Corporation purchased 100 Photocopier machines from a German supplier at the unit…

A: The Sohar Port Corporation prepares its financial statements in OMR This entity is based in the…

Q: If the forward contract was not acquired, record the journal entry to purchase the equipment.…

A: A journal is a book where all of a business's transactions are regularly recorded. Journalising is…

Q: What is the contribution to the asset base of the following items under the Basel III requirements?…

A: To determine the contribution to the asset base of the given items under the Basel III requirements…

Q: The effect of a lender agreeing to give the borrowing entity a grace period after the reporting…

A: PAS 1, deals with the situations arising after the breach of loan covenants and provides a grace…

Q: Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2023,…

A: The rate at which one country’s currency can be converted into another country’s currency referred…

Q: How many ways are there through which Islamic banks transfer ownership of the leased asset to the…

A: An arrangement in which the asset is provided by one party to the user of the asset is termed as a…

Q: a) Prepare the journal entries for 2020 for CB and CC using IFRS and ASPE if optional hedge…

A: A derivative instrument's gains or losses are recognized in accordance with the associated hedged…

Q: On 1 April 2021 Paradise Ltd, an Australia entity, places an order for US$3.5 million of inventory…

A: All amount are in AUS($).

Q: 8. On March 15, 2020, Concord Corporation entered into a forward contract with the local bank to…

A: Solution:No.         General JournalDebit $Credit $1.Forward contract assets$16,340         Forward…

Q: The short-term loan that are given to importers and exporters are known as; a. Re-purchase agreement…

A: When the payment is a guarantee by the banks rather than the account holders it is referred as the…

Q: Which of the following is true about forward contract expiration?  a.A deliverable forward contract…

A: On the date of expiration of a forward contract, settlement can be made on delivery basis or on cash…

Q: Explain the difference between commutative contract and non-commutative contract. Why Insurance is…

A: A commutative contract is a type of agreement between two parties where the exchange of goods,…

Q: Discuss the 8 factors that a lender should consider when deciding whether to grant or not grant a…

A: Any business want to put your best foot forward when applying for a loan but this can be difficult…

Q: On 1 January 2018, Global Drilling Ltd entered into a GHS22million contract for the construction of…

A: Calculate the weighted average rate of interest of accumulated expenditures for 2018: The weighted…

Q: The federal government is required to recognize liabilities from nonexchange transactions     When…

A: Liabilities refer to the obligations that are required to fulfilled in the future by the business.

Q: Commercial paper performs the same basic function as T-bills for their respective issuers. How are…

A: There are two types of markets: 1. Money market 2. Capital market ------------------------------…

Q: On entity enters into a contract to transfer Products A and B to a customer in exchange for P1,000.…

A: As per the Honor code of Bartleby we are bound to given the answer of first question only, Please…

Q: b. What would the ROES that the Bank would generate under the minimum regulatory capital requirement…

A: The Basel-III framework also introduced stricter capital requirements, including the leverage ratio,…

Q: Which would be the appropriate section in the codification for the following:  "Borrowings…

A: The Financial Accounting Standards Board (FASB) is an accounting body whose main purpose is to set,…

Q: Which of the following is a mandatory regulation for P2P Lenders a. P2P lending can only be done if…

A: P2P lending is known as the peer to peer lending and is one of the way to earn good returns though…

Q: A firm decides to sell a pool of receivables to a factor with recourse (i.e. the firm selling the…

A: Receivables are debt owned by the company which is yet to be paid and these are reported in the…

Q: Q. No. 2. Maplehauff Inc. sells lumber to a number of clients around the world. On December 1, 2019…

A: A forward contract is a financial agreement between two parties to buy or sell an asset at a future…

Q: A. Discuss what could happen if GBC Financial Holdings PLC fails to meet these new requirements.…

A: Basel III standards:Basel III standards are basic regulations established while undertaking…

Q: transactions were carried out in the Bank of Jordan and Gulf / Irbid branch on 1/5/2020. The Bank…

A: Journal entries refer to the process of systematic documentation of the financial transactions of a…

Q: Which types of loans to executives are permitted by the Sarbanes–Oxley Act?

A: Personal loans to executives are not allowed under Sarbanes–Oxley Act as it may lead to lack of…

Q: On November 30, 2019, a U.S. company, with a December 31 year-end, enters a forward purchase…

A: Forward contract is an agreement between two parties to buy or sell an asset at a prespecified price…

Q: TRUE OR FALSE? (Based on the book.) The effect of a lender agreeing to give the borrowing entity a…

A: SOLUTION NON CURRENT LIABILITIES ARE THE COMPANY'S LONG TERM FINANCIAL DEBTS OR LIABILITIES THAT ARE…

Q: Among the best things to do to maintain firm value is to: a. Improve sales at all costs b. Spend as…

A: Firm value-It is an economic measure indicating the market value of  a firm.

Q: Able Equipment entered into an arrangement to provide M. T. Bin Wholesale’s data center with Able’s…

A: Lease:   It is an agreement between the owner of an asset and a tenant where the owner agrees to…

Q: When a company uses put options to hedge foreign currency firm commitments, the accounting is…

A: Let's say a company enters into a foreign currency option contract committing to buy Euros at a…

Q: at are the forms and characteristics of hedge accounting Bank B granted on 1.10.20X1 to company D a…

A: Accounting for Loan, Loan is the debt which an organization took to meet up the funds requirement…

Q: T Kirana is a company engaged in the export and import sector. January 1, 2020 PT Kirana borrowed a…

A: Part (a) Date  Particulars  Amount(IDR) (Dr) Amount (IDR) (Cr) 01-01-2020 Bank A/c Dr 150000000…

Q: Which one of the following statements is NOT correct?   a) A repurchase agreement is the sale of a…

A: Central bank is the apex bank that extends its banking services to commercial bank and government of…

Q: Required Prepare Maple Ltd.'s journal entries to reflect the above assuming that: a. the hedge is a…

A: a. Cash Flow HedgeDateAccountDebit (CAD)Credit (CAD)Aug 31, 2020Derivative Asset/Liability00Apr 30,…

Q: How an investment or saving account can be opened in an Islamic Bank? Under what contract these…

A: Saving account is one of the facilities given by the bank so that investors may deposit their cash…

Balance Sheet Regulations

A balance sheet is a financial statement that shows the position of a company's assets and liabilities on a specific date. The balance sheet is prepared after preparing the statement of profit and loss statement (income statement). The balance sheet and other financial statements differ in the sense that the balance sheet shows the financial position at any given point in time. In contrast, the other financial statements show the financial performance over a particular duration.