Holdings of own bill acceptancesHoldings of own bill acceptances

Holdings of own bill acceptances

If this bill is accepted and held within the ADI's own portfolio it should be included as an asset on ARF 320.0 Statement of Financial Position (Domestic Books) and classified to either trading or investment securities. This type of bill acceptance is excluded from the liability item "Acceptances" on the ARF 320.0 Statement of Financial Position (Domestic Books), since the ADI is also the holder of the bills. It is also excluded from the contra asset item "Acceptances of customers", since this claim on the drawer is classified as a security holding.

Holdings of own bill acceptances should also be reported to Bills of Exchange (Bank accepted) on ARF 320.1 Debt Securities Held. Bills purchased by the bank, which are accepted by other ADIs, will also be classified to trading or investment securities, and reported to Bills of Exchange (Bank accepted) on ARF 320.1 Debt Securities Held.

Note on References to Accounting Standards

This Note is about references in these instructions to an accounting standard or accounting standards, e.g. where the instructions say that something must be done in accordance with a particular AASB or international accounting standard, or must be done in accordance with the accounting standards (however described) generally.

Where you see such a reference, you must read it as meaning the version of the accounting standard, or versions of the accounting standards, applying to reporting periods (within the meaning of the accounting standards) beginning immediately before 1 January 2005.

Accordingly, the new AASB standards for 2005 are not to be applied.

Similarly, a reference to principles or conventions (however described) governing an accounting procedure or treatment shall be taken to refer to principles or conventions applicable in relation to reporting periods (within the meaning of the accounting standards) that began immediately before 1 January 2005.