Please answer the following case study discussion questions below for the attached case study.

'Case 6.2 Citi – A Very Bad Year' attached below.

Discussion Questions:

Principal transactions. Discuss losses reported from these transactions, variance from year on year. What are these principal transactions? Are they pertinent to earnings? Why? What happen in 2006 v 2008? Discuss what exposures financial institutions have to significant market fluctuations, discuss types of risks.

Realized (gains) and losses from sales of investments. Discuss what they are, are they impactful to the earnings?

Provision for loan losses. What are these? To what business would this represent a major item on their financial statements? Do analyst need to review this provision in assessment of current and future earnings? What is happening in the economy in these years? What adjustments is Citi making to this account? Why?

Restructuring. Describe the restructuring and the impact to the f/s. What type of accounting treatment do these expenses get? Is an adjustment required for future predictions, why? Be specific as to amount of adjustments necessary. Discuss impact to the cashflow.

Other Operating expenses (goodwill impairment). Understand what it is, discuss the press release and note 19. How much was recorded pre and post-tax? Are they pertinent to the future earnings, are they considered material? Discuss amounts and adjustments required.

Discontinued operations. Discuss actions taken by Citi and sell or dispose of units. Time period? Impact to the financial statements and future earnings analysis.