944 NEW ZEALAND GAZETTE, No. 35 11 FEBRUARY 2005

(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 the assets;

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

(5) the total liabilities of the Registered Bank in New Zealand, net of amounts due to related parties (including amounts due to a subsidiary or affiliate of the Registered Bank);

(6) if applicable, the total Retail Deposits of the Registered Bank in New Zealand, as defined in the Registered Bank’s Conditions of Registration; and

(7) with respect to the insurance group for which group financial statements must be made available in accordance with clause 14B of this Order, and with respect to any affiliated insurance group outside the Overseas Banking Group:

(a) the nature and amount of any credit enhancements provided by the Banking Group;
(b) the total amount of funding provided by the Banking Group;
(c) the total amount of any other Credit Exposures provided by the Banking Group, broken down according to their ranking on a winding up of the insurance group;
(d) if the entity heading the insurance group has one or more financial strength ratings, claims paying ability ratings, or credit ratings applicable to its long term senior unsecured obligations payable in New Zealand, in New Zealand dollars, in respect of each such rating:

    (i) the name of the person who gave the rating;
    (ii) the current rating and all qualifications to that rating;
    (iii) any changes to the rating in the two years preceding the Balance Date and the date on which any such change occurred;
    (iv) descriptions or explanations of all the steps in the applicable rating scales.

For the purpose of this subclause 3 (7), the terms "credit enhancement", "affiliated insurance group", and "funding" shall be interpreted in accordance with the Reserve Bank document entitled Capital Adequacy Framework (BS2), as amended from time to time.

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 6 (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:

   (i) Non-Accrual Assets;
   (ii) Restructured Assets;
   (iii) Real Estate Assets Acquired Through the Enforcement of Security;
   (iv) Other Assets Acquired Through the Enforcement of Security;
   (v) Past Due Assets;
   (va) Other Assets Under Administration;

   the following information:

   (vi) the aggregate amount which has been recognised; and
   (vii) the aggregate amount which has not been recognised;

before deducting provisions for expected losses or provisions for diminution in asset value, and