Balance SheetBalance Sheet

Balance Sheet

18. A bank shall present a balance sheet that groups assets and liabilities by nature and lists them in an order that reflects their relative liquidity.

19. In addition to the requirements of other Australian Accounting Standards, the disclosures in the balance sheet or the notes shall include, but are not limited to, the following assets and liabilities:

Assets

Cash and balances with the central bank;

Treasury bills and other bills eligible for rediscounting with the central bank;

Government and other securities held for dealing purposes;

Placements with, and loans and advances to, other banks;

Other money market placements;

Loans and advances to customers; and

Investment securities.

Liabilities

Deposits from other banks;

Other money market deposits;

Amounts owed to other depositors;

Certificates of deposits;

Promissory notes and other liabilities evidenced by paper; and

Other borrowed funds.

20. The most useful approach to the classification of the assets and liabilities of a bank is to group them by their nature and list them in the approximate order of their liquidity; this may equate broadly to their maturities. Current and non-current items are not presented separately because most assets and liabilities of a bank can be realised or settled in the near future.

21. The distinction between balances with other banks and those with other parts of the money market and from other depositors is relevant information because it gives an understanding of a bank’s relations with, and dependence on, other banks and the money market. Hence, a bank discloses separately:

(a) balances with the central bank;

(b) placements with other banks;

(c) other money market placements;

(d) deposits from other banks;

(e) other money market deposits; and

(f) other deposits.

22. A bank generally does not know the holders of its certificates of deposit because they are usually traded on an open market. Hence, a bank discloses separately deposits that have been obtained through the issue of its own certificates of deposit or other negotiable paper.

23. [Deleted by the IASB]

24. A bank shall disclose the fair values of each class of its financial assets and liabilities as required by AASB 132.