Professional Documents
Culture Documents
PURPOSE
Review the list of financial statement items included in OECDBank Profitability publication in accordance with the IMFs
BALANCE SHEET
ASSETS
Cash and balances with central bank Loans and receivables due from banks Loans and receivables due from customers
Financial assets at fair value through profit or loss: Fair value (IAS 39)
Available for sale financial assets: Fair value. Unrealized gains and losses disclosed in total equity (IAS 39) Derivatives-Hedge accounting: Fair value (IAS 39) Tangible and intangible assets: Cost model or Revaluation model (IAS 16, 38, 40) Interest in associates and Joint ventures: Equity method (IAS 28, 31)
MODIFICATIONS-ASSETS
Classification based on intentions of management. Similar classification in US GAAP (FASB 115, FASB 159). Not instrument based approach. However, subdivisions by instruments added (Debt, Equity instrument etc). Loans and receivables cover both loans and deposit placements in line with bank reporting practices. Tradable loans or loans that have active market classified as trading, available for sale or held to maturity. Loans can be designated as fair value after initial recognition. Financial derivatives divided as trading and hedging. Trading derivatives disclosed in Fair Value through Profit or Loss.
LIABILITIES
Financial liabilities at fair value through profit or loss Due to banks Due to customers
Debt certificates
Subordinated liabilities Derivatives-hedge accounting Provisions Other liabilities Total equity
Financial liabilities at fair value through profit or loss (trading derivatives, short selling, liabilities intended for repurchase in the short term, liabilities designated at fair value) Derivatives-hedge accounting
Financial liabilities measured at amortized cost (IAS 39) Due to banks Due to customers Debt certificates Subordinated liabilities
MODIFICATIONS-LIABILITIES
Due to banks and due to customers cover both loan borrowings and deposits in line with bank reporting practices.
Provision for contingencies and charges and subordinated liabilities disclosed separately.
Negative values from trading derivatives disclosed in financial liabilities at fair value through profit or loss; negative values from hedging derivatives disclosed in derivatives-hedge accounting. Detailed breakdown of total equity: Capital & reserves, Revaluation changes, Net profit or loss and Minority interest. Goodwill not deducted from total equity but an asset of the acquirer.
INCOME STATEMENT
INCOME STATEMENT
Total profit or loss from continuing operations
Net interest income: (Interest income Interest expense) Net non-interest income: (Dividend income + Net fees & commissions + Gains / Losses on financial instruments + Share of earnings of associates & Joint ventures + Other income) Operating expenses: (Staff expenses + Administrative expenses + Other expenses) Impairment losses on financial assets: (Loans + Other) Tax expense
Total profit or loss from discontinued operations after tax
Net profit
MODIFICATIONS-INCOME STATEMENT
Seperation of income statement as continuing and discontinued operations in accordance with IFRS 7. Similar seperation in US GAAP
(SFAS 144).
No extraordinary item in accordance with IAS 1. Fees and commissions shown on a net basis. New added items Dividend income Share of earnings of associates & joint ventures Administrative expenses.
Tier 1 capital to assets (IMF-encouraged; Tier 1 used as numerator for cross-border consolidated data)
Required memorandum items: Regulatory capital, Risk weighted
variations in implementation.
Residential/Commercial real estate loans Foreign currency denominated loans/liabilities Large exposures
Definitions of the memorandum items in line with IMF Guide.
Total profit or loss before tax from continuing operations to average assets (ECB)
Net interest income to average assets (ECB)
Operating expenses to total income (ECB, IMF-core but a slight difference in definition)
Staff expenses to operating expenses (ECB, IMF-encouraged but
Average assets Average tier 1 capital Average risk weighted assets Slight differences for some ratios: Total income includes fees and commissions on net basis Fees and commissions expense not classified as operating expenses in line with reporting practices Total income and expense excludes profit from discontinued operations.
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