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Deposit Takers Act 2023

Depositor compensation scheme - Accountability

251: Financial statements of fund

You could also call this:

"The Bank must prepare easy-to-understand financial reports each year to show how the fund's money is being used."

Illustration for Deposit Takers Act 2023

The Bank must prepare financial statements for the fund after each financial year. You will see these statements include information about how the fund is doing financially. The Bank must follow the rules set out in the Financial Reporting Act 2013 when preparing these statements.

The financial statements must have all the information needed to show what is happening with the fund's money. This includes a forecast of how much money the fund will make and spend, which is prepared at the start of the year. You can compare this forecast with the actual financial statements to see how the fund is doing.

The Bank must make sure the financial statements are accurate and follow standard accounting practices. This means the statements must be easy to understand and give a true picture of the fund's financial situation. The Bank must prepare these statements as soon as possible after the end of each financial year.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS504948.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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"The Minister sets rules for borrowing money, like paying it back with interest."

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252: Statement of responsibility, or

"People in charge promise the financial statements are correct and truthful"

Part 6Depositor compensation scheme
Accountability

251Financial statements of fund

  1. As soon as practicable after the end of each financial year, the Bank must prepare financial statements in relation to the fund for that financial year.

  2. The financial statements must—

  3. comply with generally accepted accounting practice (as defined in section 8 of the Financial Reporting Act 2013); and
    1. include any other information or explanations needed to fairly reflect the financial operations and financial position of the fund; and
      1. include a forecast statement of comprehensive revenue and expense for the fund prepared at the start of the financial year, for comparison with the actual financial statements.