Banks reporting under IFRS are required to follow
the requirements of all IFRS standards. Banks have
high concentrations of certain types of transactions
and accordingly a high exposure to certain types
of risk. Specific additional disclosures and presentation
requirements are therefore required by IAS 30 to
address the needs of users of bank financial statements.
Use the quick links below to access specific components,
solutions and related publications.
Linked components
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The additional disclosure requirements for banks
focus on matters such as the liquidity and solvency
of the bank, together with the risks associated
with the assets and liabilities recognised on its
balance sheet and to its off-balance sheet items.
Additional Applying IFRS chapters have been developed
to supplement the general industry version of Applying
IFRS to provide guidance in the application of IFRS
to banking entities.
What is a bank?
Banks are defined as any financial institution,
one of whose principal activities is to take deposits
and borrow with the objective of lending and investing
and which are within the scope of banking or similar
legislation [IAS30.2]. An institution does not have
to have the word "bank" in its name to
be categorised as a bank for the purposes of IFRS
.
Additional disclosures
The principal additional or amended disclosures required
in the financial statements of banks are as follows:
a)
Presentation of the income statement and
related disclosure notes [IAS30.10]
b)
Presentation of the balance sheet and related
disclosure notes [IAS30.19]
c)
Additional accounting policies
[IAS30.8]
d)
Analysis of the maturities of assets and
liabilities [IAS30.30]
e)
Disclosure of contingencies and commitments,
including off balance sheet items [IAS30.26]
f)
Disclosure of significant concentrations
of assets, liabilities and off balance sheet
items
[IAS30.10] [IAS30.40]
g)
Disclosure of losses on loans and advances
[IAS30.43]
h)
Disclosure of amounts set aside for general
banking risks [IAS30.50]
i)
Disclosure of assets pledged as security
[IAS30.50]
How to use this supplement
All IFRSs are potentially applicable for the financial
statements of banks, however certain standards have
greater impact on those financial statements than
others, notably IAS 30 "Disclosures in the
financial statements of banks and similar financial
institutions", IAS 32R "Financial instruments:
Disclosure and presentation" and IAS 39R "Financial
instruments: Recognition and measurement".
These standards impact on financial reporting of
the operations of a bank more significantly than
other entities. Therefore amended versions of the
Applying IFRS chapters applicable to these areas
have been prepared, aimed specifically at the preparers
and auditors of the financial statements of banks.
These areas are:
a)
Income statement for banks
b)
Balance sheet for banks
c)
Cash flow statement for banks
d)
Classification and measurement of financial
assets for banks
e)
Impairment of financial assets
for banks
f)
Derecognition of financial assets
for banks
g)
Classification, measurement
and derecognition of financial liabilities in
banks
h)
Complex financial liabilities in banks
i)
Hedge accounting for banks
j)
Embedded derivatives for banks
For all other Applying IFRS chapters, reference
should be made to the main text.
