432 NEW ZEALAND GAZETTE, No. 21 23 FEBRUARY 2007

(c) where included in the income statement:

(i) the net gain or loss attributable to derivatives used for hedging purposes that do not qualify as designated
and effective hedging instruments in terms of the provisions of NZ IAS 39;

(ii) the net amount relating to the ineffective portion of any hedging activities that qualify for hedge accounting
in terms of the provisions of NZ IAS 39;

(iii) the net gain or loss on financial assets, other than on financial assets held for trading, designated as at fair
value through profit or loss in terms of the provisions of NZ IAS 39;

(iv) the net gain or loss on financial liabilities, other than on financial liabilities held for trading, designated as at
fair value through profit or loss in terms of the provisions of NZ IAS 39.

The disclosures required by this subclause 8(c) are subject to a Materiality criterion;

(d) where risk attaches to monetary assets and monetary liabilities set-off in accordance with NZ IAS 32:

(i) the gross amount of monetary assets and monetary liabilities set-off;

(ii) the nature of the risk attaching to the assets and liabilities set-off;

(iii) the revenues and expenses relating to the assets and liabilities set-off.

The disclosures required by this subclause 8(d) are subject to a Materiality criterion.

The disclosure requirements of this subclause shall be interpreted in accordance with the provisions of FRS-27: Right of Set-Off;

(e) where an entity is party to an agreement to set-off assets and liabilities under certain circumstances in the future,
and the set-off meets the set-off criteria described in NZ IAS 32, details of the assets and liabilities subject to the
future right of set-off.

The disclosures required by this subclause 8(e) are subject to a Materiality criterion.

Second Schedule
Capital Adequacy of the Registered Bank and the Banking Group

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

2. The General Disclosure Statement shall contain the information specified below, in such format as the Registered Bank
   determines, derived in accordance with the Conditions of Registration relating to capital adequacy and the Reserve Bank
   document entitled Capital Adequacy Framework (BS2) as amended from time to time, in respect of the Capital of the Registered
   Bank and the Banking Group, as at the Balance Date.

Capital
Tier One Capital

(a) Issued and fully paid up ordinary share capital

(b) Perpetual fully paid up non-cumulative preference shares

(c) Revenue and similar reserves

(d) Current period’s audited retained earnings

(e) Tier one minority interests

Less: Deductions from tier one capital (Specify each deduction)

Plus: Other adjustments to tier one capital (specify each adjustment)

Total Tier One Capital

Tier Two Capital
Upper Tier Two Capital

(a) Unaudited retained profits

(b) Revaluation reserves

(c) General provisions for doubtful debts (not applicable for a Registered Bank that has adopted NZ IASs and NZ IFRSs)

(d) Upper tier two capital instruments (specify)

Lower Tier Two Capital

(e) Term subordinated debt

(f) Other capital elements with original maturity of five years or more

Total Tier Two Capital

Tier One Capital plus tier two capital

Less: Deductions from total capital (specify each deduction)

Plus: Other adjustments to total capital (specify each adjustment)

Capital

(1) The General Disclosure Statement shall contain the information specified below in respect of the Registered Bank and
the Banking Group.

(2) For each class of equity share capital:

(a) whether it is included in Tier One Capital or tier two capital;

(b) the Material terms and conditions applying to that class including but not limited to:

(i) voting rights;

(ii) redemption, conversion or capital repayment options/facilities and their relevant terms or conditions;

(iii) terms or conditions of any predetermined dividend rate;

(iv) provision for any variation or suspension of dividend payments;