Statistical Notices to Reporting Banks 2005/02
All Statistical Notices are available here.
Statistical Notices should be received by all those responsible for the completion of Bank of England returns. To add names to the circulation list please contact Irene Coleman (Tel. 020 7601 3644).
- Pension reserves and liabilities following IAS* implementation (effective end-March 2005 reporting)
- UK Bank bills eligible for discount at the Bank of England (effective end-August 2005 reporting)
- Contents page for Yellow Folder (update)
1.Pension reserves and liabilities following IAS* implementation (effective end-March 2005 reporting)
As banks implement International Accounting Standards, reporting questions are emerging that were not addressed in Statistical Notice 2004/06. As this happens, further clarification will be provided on an IFRS FAQ page on the internet and also, where appropriate, through Statistical Notices. This is the second example of additional guidance. (The first dealt with the reporting of intangible assets on Form BT in Statistical Notice 2005/01).
IAS implementation brings pension accounting on to the balance sheet. The liability (or asset) for pension obligations recognised under International Accounting Standards should be reported on the Form BT in item 19CD - "Capital and other internal accounts" and on Form QX in item 19CD5 - "Reserves and other internal accounts". For Form PL reporting, the accrued pension payments recognised under International Accounting Standards for the quarter/year as Current service cost, Past service cost, Losses on curtailment and Net actuarial losses recognised during the year should be included in item PL12AB - "operating expenses - pension contributions". The other aspects of the P&L charge, i.e. Interest cost and Expected return on plan assets should be reported in item PL14 - "other items".
If you have any queries relating to this guidance, please contact Martin Udy (Tel. 020 7601 4731).
* Also referred to as International Financial Reporting Standards (IFRS) within this notice
2.UK Bank bills eligible for discount at the Bank of England (effective end-August 2005 reporting)
On 11 February the Bank issued a press release stating that it was to cease accepting eligible bankers' acceptances as collateral in its sterling money market operations (available here). From 14 March 2005 bills will no longer be eligible for rediscount, however those that were issued before this date will remain eligible as collateral until 17 August 2005. Therefore from end-August balance sheet reporting, Item 26DA - "UK bank bills eligible for rediscount at the Bank of England" on the Form BT should be reported as zero. At that stage the list of eligible banks in the Classification of Accounts Guide (Part V section 3) will be removed. Any bills issued by these institutions should be reported in item 26DB - "Other UK bank bills" from end-August onwards.
Local authority bills ceased to be eligible for rediscount with effect from November 2004.
An updated page of the definitions for Form BT is attached for insertion in the Yellow Folder. If you have any questions please contact Anne Smith (Tel. 020 7601 4216).
3. Contents page for Yellow Folder (update)
Attached.
Bank of England
Monetary & Financial Statistics Division
31 March 2005
