AASB 130 - Disclosure in the Financial Statements of Banks and Similar Financial Institutions - July 2004
Concentrations of Assets, Liabilities anConcentrations of Assets, Liabilities and Off Balance Sheet Items
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Concentrations of Assets, Liabilities and Off Balance Sheet Items
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A bank shall disclose any significant concentrations of its assets, liabilities and off balance sheet items. Such disclosures shall be made in terms of geographical areas, customer or industry groups or other concentrations of risk. A bank shall also disclose the amount of significant net foreign currency exposures.
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A bank discloses significant concentrations in the distribution of its assets and in the source of its liabilities because it is a useful indication of the potential risks inherent in the realisation of the assets and the funds available to the bank. Such disclosures are made in terms of geographical areas, customer or industry groups or other concentrations of risk which are appropriate in the circumstances of the bank. A similar analysis and explanation of off balance sheet items is also important. Geographical areas may comprise individual countries, groups of countries or regions within a country; customer disclosures may deal with sectors such as governments, public authorities, and commercial and business entities. Such disclosures are made in addition to any segment information required by AASB 114.
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The disclosure of significant net foreign currency exposures is also a useful indication of the risk of losses arising from changes in exchange rates.