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Deposit Takers Act 2023

Depositor compensation scheme - Accountability

256: Financial information about fund consolidated into Bank’s financial statements only if required by financial reporting standards

You could also call this:

"Banks only include fund information in their financial statements if required by financial reporting rules"

Illustration for Deposit Takers Act 2023

When you look at the financial statements of a Bank, you might see information about a fund consolidated into those statements. This only happens if the financial reporting standards say it is required. You can find out what these standards are by looking at the Financial Reporting Act 2013. The Bank must follow these standards when deciding what information to include in their financial statements.

The rules about consolidating fund information into the Bank's financial statements apply even if other laws, like the Reserve Bank of New Zealand Act 2021, say something different. The Bank and the Bank group have specific meanings, which are explained in the Reserve Bank of New Zealand Act 2021 and the Financial Reporting Act 2013. These meanings help clarify what is included in the financial statements.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS682593.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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Part 6Depositor compensation scheme
Accountability

256Financial information about fund consolidated into Bank’s financial statements only if required by financial reporting standards

  1. Information about the financial position or performance of the fund may be consolidated into the financial statements of the Bank or the Bank group only if consolidation is required by applicable financial reporting standards.

  2. This section applies despite anything to the contrary in Part 5 of the Reserve Bank of New Zealand Act 2021.

  3. In this section,—

    applicable financial reporting standard has the same meaning as in section 5 of the Financial Reporting Act 2013

      Bank group has the same meaning as in section 215 of the Reserve Bank of New Zealand Act 2021.