Part Trust Activities - AASB 130 - Disclosure in the Financial Statements of Banks and Similar Financial Institutions - July 2004 - Trust Activities | Zoe
AASB 130 - Disclosure in the Financial Statements of Banks and Similar Financial Institutions - July 2004
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Banks commonly act as trustees and in other fiduciary capacities that result in the holding or placing of assets on behalf of individuals, trusts, retirement benefit plans and other institutions. Provided the trustee or similar relationship is legally supported, these assets are not assets of the bank and, therefore, are not included in its balance sheet. If the bank is engaged in significant trust activities, disclosure of that fact and an indication of the extent of those activities is made in its financial report because of the potential liability if it fails in its fiduciary duties. For this purpose, trust activities do not encompass safe custody functions.