 |
| |
|
|
| |
SFAS No.
28 Disclosures
in the Financial Statements of Banks |
|
| |
|
|
| |
 |
|
| |
 Status |
|
| |
Revised by
the Financial Accounting Standards Committee in Taiwan on
September 22, |
|
|
2005 |
|
| |
|
|
| |
Summary |
|
| |
The purpose of this Statement is to establish the
standards for disclosures in the financial |
|
| |
statements of banks. |
|
|
|
|
|
Accounting Policies
|
|
| |
A Bank shall disclose the following
accounting policies in the notes to the financial |
|
| |
statements: |
|
|
(a) the
recognition of the principal types of revenues;
|
|
|
(b) the
valuation of financial instruments;
|
|
|
(c) the
valuation of the collateral accepted;
|
|
|
(d) the
recognition of or disclosures for contingencies and commitments;
|
|
|
(e) the
basis for the determination of impairment losses on loans and
advances and for
|
|
|
writing
off uncollectible loans and advances;
|
|
|
(f) the
basis for the determination of losses on guarantees; and
|
|
|
(g) the
basis for the determination of charges for general banking risks and
the
|
|
|
accounting treatment of such charges.
|
|
|
|
|
|
Income Statement
|
|
|
A bank shall present an income
statement which groups revenues and expenses by
|
|
|
nature and discloses the amounts of
the principal types of revenues and expenses.
|
|
|
|
|
|
Income and expense items shall not be
offset except for the following circumstances: |
|
|
(a) income
and expense relating to assets and liabilities that have been offset
in
|
|
|
accordance with FASC No. 36. |
|
|
(b) income
and expense relating to hedges.
|
|
|
|
|
|
Gains and losses arising from each of
the following should be reported on a net basis:
|
|
|
(a) disposals
and changes in the carrying amount of financial asset at fair
value
|
|
|
through profit or loss;
|
|
|
(b) disposals
of investment securities other than financial asset at fair value
through |
|
|
profit
or loss; and
|
|
|
(c) dealings
in foreign currencies, valuation of foreign currency monetary assets
and
|
|
|
liabilities. |
|
|
|
|
|
A bank should disclose average
interest earning assets, average interest-bearing |
|
|
liabilities and average interest rates
for the period, and provide a commentary about the
|
|
|
above information. If governments
provide assistance to banks by making deposits and
|
|
|
other credit facilities available at
interest rates which are substantially below market |
|
|
rates, banks should disclose the
extent of these deposits and facilities and their effect |
|
|
on net income.
|
|
|
|
|
|
Balance Sheet
|
|
|
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.
|
|
|
|
|
|
Contingencies and Commitments
|
|
|
A bank shall disclose the nature and
amount of the following contingencies and
|
|
|
commitments:
|
|
|
(a) commitments
to extend credit that are irrevocable because they cannot be
|
|
|
withdrawn at the discretion of the bank without the risk of
incurring significant
|
|
|
penalty
or expense; and
|
|
|
(b) contingencies
and commitments arising from off balance sheet items including
|
|
|
those relating to:
|
|
|
(i)
direct credit substitutes
including general guarantees of indebtedness, bank
|
|
|
acceptance guarantees and standby letters of credit serving as
financial
|
|
|
guarantees for loans and securities;
|
|
|
(ii)
certain transaction-related contingencies including performance
bonds, bid
|
|
|
bonds, warranties and standby letters of credit related to
particular
|
|
|
transactions;
|
|
|
(iii)
short-term self-liquidating trade-related contingencies arising from
the
|
|
|
movement of goods, such as documentary credits where the
underlying
|
|
|
shipment is used as security; and
|
|
|
(iv)
other commitments, note issuance facilities and revolving
underwriting
|
|
|
facilities.
|
|
|
|
|
|
Maturities of Assets and
Liabilities
|
|
|
A bank shall disclose an analysis of
assets and liabilities into relevant maturity groupings
|
|
|
based on the remaining period at the
balance sheet date to the contractual maturity
|
|
|
date.
|
|
|
|
|
|
Significant Risk Concentrations
of Off Balance Sheet Items
|
|
|
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.
|
|
|
|
|
|
Losses on Loans and Advances
|
|
|
A bank shall disclose the following
information:
|
|
|
(a) the
aggregate amount of any allowance account for impairment losses on
loans
|
|
|
and advances at the balance sheet date and the movements in the
allowance
|
|
|
account during the period. The amount recognized as an expense in
the period for
|
|
|
impairment losses on uncollectible loans and advances, the amount
charged in the
|
|
|
period for loans and advances written off and the amount credited in
the period
|
|
|
for loans and advances previously written off that have been
recovered, are
|
|
|
shown separately;
|
|
|
(b) for
loans and advances with past due interests and principals, the basis
of
|
|
|
recognizing interest revenue and the impact of non-accrual interest
revenue on
|
|
|
net income; and
|
|
|
(c) the
balance of non-accrual loans and advances and the basis of
determining their
|
|
|
book values.
|
|
|
|
|
|
Assets Pledged as Security
|
|
|
A bank shall disclose the aggregate
amount of secured liabilities and the nature and
|
|
|
carrying amount of the assets pledged
as security.
|
|
|
| |
|
|
|
Effective
date
|
|
|
|
|
|
|
|
|
|
This statement becomes effective for
financial statements for the fiscal year ending on |
|
| |
or after December 31, 2000. |
|
|
|
|
|
