896

NEW ZEALAND GAZETTE, No. 35

11 FEBRUARY 2005

19. Guarantors—(1) Where a General Disclosure Statement states that a person guarantees any Material obligations of the Registered Bank, and subclause (2) of this clause does not apply, the Supplemental Disclosure Statement shall contain a copy of the full guarantee contract and the most recent financial statements and group financial statements of the guarantor, together with a copy of the audit report (if any) relating to those statements, unless this information is already contained within the General Disclosure Statement.

(2) Where a General Disclosure Statement states that a person or persons have entered into any Material cross guaranteeing arrangements with the Registered Bank, the Supplemental Disclosure Statement shall contain a copy of the full guarantee contract if:

(a) there is a single contract which sets out the rights and obligations of all the cross guarantors; or

(b) there is a standard contract which is representative of the rights and obligations of each of the cross guarantors;

unless this information is already contained within the General Disclosure Statement.

20. Conditions of Registration—The Supplemental Disclosure Statement shall contain a copy of the Conditions of Registration which are applicable as at the date on which the signing of the Disclosure Statement, for or on behalf of all Directors, is completed, and state the date as from which such Conditions of Registration apply, unless this information is already contained within the General Disclosure Statement.

21. Bilateral Netting Agreements—Where a General Disclosure Statement states that a Registered Bank has calculated its aggregate Credit Exposure to Connected Persons on a net basis, the Supplemental Disclosure Statement shall contain a copy of the bilateral netting agreement, and as applicable, a copy of the advice from an independent third party expert validating the robustness of that agreement, unless this information is already contained within the General Disclosure Statement.

DIANE MORCOM, Clerk of the Executive Council.

First Schedule
Supplementary Financial Disclosures, and Asset Quality

Supplementary Financial Disclosures

1. The General Disclosure Statement shall contain, in respect of the Registered Bank and the Banking Group, for the Accounting Period or the Interim Accounting Period, or as at the Balance Date, as the case may be, the information required to be disclosed pursuant to clauses 3 and 4 of this Schedule.

2. The information required to be disclosed pursuant to clause 3 of this Schedule shall include comparative figures for the previous corresponding period.

3. Supplementary Information on the Statement of Financial Position:

(1) Total interest earning and discount bearing assets;

(2) total interest and discount bearing liabilities;

(3) where assets presented in the statement of financial position have been used to secure any obligations, the nature and amount of those assets; and

(4) the nature and amount of any assets not legally owned but presented in the statement of financial position.

4. Accounting Policies:

(1) Accounting policies followed for Financial Instruments with respect to the basis for recognising revenues and expenses (including gains and losses), including:

(a) interest revenue and expense, and policies on inter-period allocations of interest revenue and expense;

(b) fee revenue and expenses, distinguishing between yield related and non yield related items, and policies in relation to inter-period allocations;

(c) recognising gains or losses on Investment Securities and Other Securities.

(2) Accounting policies followed for recognising Financial Instruments in the financial reports or for treating Financial Instruments as unrecognised items, including:

(a) the classification and measurement of Investment Securities and Other Securities;

(aa) the basis for classifying, and for recognising and measuring, each of the following classes of assets:

(i) Past Due Assets; and

(ii) Other Assets Under Administration;

(b) accounting for sale and repurchase agreements, reverse sale and repurchase agreements or their option derivatives;

(c) whether securities are accounted for on a trade or settlement date basis;

(d) accounting for Financial Instruments which are used for hedging purposes;

(e) accounting for leases;

(f) accounting for foreign exchange contracts, interest rate contracts, and derivative instruments such as options, futures, and swaps;

(g) accounting for acceptances and endorsements of bills of exchange;

(h) accounting for loan transfers and the securitisation of Financial Assets.

Asset Quality

5. The information required to be disclosed pursuant to clauses 6 (a) and (b) of this Schedule shall include comparative figures for the previous corresponding period.

6. The General Disclosure Statement shall contain, in respect of the Registered Bank and Banking Group as at the Balance Date, the following information:

(a) in respect of each of the following classes of assets: