Nepal Rastra Bank. Uniform Chart of Accounts. for "A", "B" and "C" class Banks and Financial Institutions. May 2018

Transcription

1 Nepal Rastra Bank Uniform Chart of Accounts for "A", "B" and "C" class Banks and Financial Institutions May 2018 Banks and Financial Institution Regulation Department 1

2 1. Introduction 1.1 Background As per the Companies Act of Nepal, 2063, listed state owned enterprises with minimum paid up capital of NPR 5 billion are mandated to comply with Nepal Financial Reporting Standards (NFRS) from Financial Year (Nepal Financial Year ) onwards except commercial banks including state owned commercial banks of Nepal. Commercial banks are obliged to comply with Nepal Financial Reporting Standards (NFRS) from Financial Year (Nepal Financial Year ) onwards. The Accounting Standards Board (ASB), which is an independent statutory authority to issue financial reporting and accounting standards within the country, has issued the International Financial Reporting Standards (IFRS) compliant accounting standards christened the Nepal Financial Reporting Standards (NFRS). The Institute of Chartered Accountants of Nepal (ICAN) is an autonomous body that was set up under a special act, to undertake accountancy profession in Nepal. Based on NFRS, the ICAN, ASB and Nepal Rastra Bank (the Central Bank of Nepal) formed a task force jointly to prepare a draft model of financial statements and circulated it to banks for their comments and suggestions. It was noted that the commercial banks in Nepal are yet to have a standardized chart of accounts (CoA) since it is presently not prescribed by the regulatory framework. Instead, each Nepalese bank has its own COA in place, which has to be upgraded/ changed in order to align to the new NFRS requirements. Nepal Rastra Bank (NRB), as the regulator, has issued Directive No. 4 which contains the accounting policies and formats of financial statements for the banks and financial institutions falling under its jurisdiction. NRB has also issued Directive No. 9 which contains a list of itemized accounts (also termed as regulatory COA ). But this COA represents a basis for regulatory and prudential reporting but not for financial accounting and reporting purposes. In the current scenario wherein each bank produces financial statements based on its own customized chart of accounts, the supervisory authority is unable to monitor the adequacy of the financial statements and their harmonization with the NFRS during off-site supervision. In addition, the lack of consistent format undermines the comparability of the financial statements of different BFIs. The supervisory authorities thus have to place reliance on the submitted financial statements and all other regulatory reports, without having tools to carry out logical monitoring and subsequently take actions. In such circumstances, a lack of both reliable and comparable data can pose risk for regulators and supervisors and can lead to inadequate assessments of the financial conditions of the banks as well as inadequate policy responses. Globally, transition from the local generally accepted accounting practices to the IFRS accounting has been challenging in most countries especially in the banking sector, since the accounting measurement and policies as well as the MIS had to change enormously. Inadequate transition to the new environment can lead to inaccurate and unreliable financial and supervisory reporting, which, in turn, can have an adverse impact on prudential policy, effective banking supervision and, ultimately, on maintaining financial stability. In order to minimize these risks, it is of utmost importance to provide relevant guidelines and detailed instructions to all banks on uniform way of transition. This includes not only the publication of accounting standards and model financial statements, but standardization of the classification, recording and disclosure of transactions under each category in the financial reports. This can be achieved by drawing up a uniform COA, which should be mandatory for all banks. 1.2 Current practices across banks at Nepal and need for a Uniform Chart of Accounts A Chart of accounts (COA) is a financial organizational tool that provides a complete listing of every account in an accounting system. A uniform COA serves as an invaluable tool to standardize the accounting nomenclature and terminology thereby harmonizing the preparation and presentation of financial information based on the applicable accounting principles. COA is typically represented as a list of account names and corresponding numerical coding structures, which are used to record the financial 2

3 information such as assets, liabilities, income and expenses. It is a fundamental component of accounting information system in the modern technology era We observe that the BFIs in Nepal are currently using COA which may not be completely aligned with the supervisory reporting requirements. This leads to a situation where the accounting data is often extensively reclassified/restated manually to prepare the monthly and quarterly reporting as per the requirement of the NRB. Additionally, fulfilling the data requirement by statutory auditors, internal auditors, NRB, board of directors, due diligence team is a priority for the top management of the banks. We also observed that many BFIs are not able to fulfil the deadlines of submitting monthly or quarterly reports (as per Directive 9, monthly and quarterly reporting forms are required to be submitted within 15 days from the expiry of respective period) because extensive manual intervention is required to recast the data in the desired reporting formats. Financial Stability Report issued by NRB in 2013 pointed out that the reliability and accuracy of data need to be improved by BFIs. To enable this, COA needs to be recognized as a hub through which data is pulled, posted and calculated by various stakeholders including regulators. Currently, the top management relies on financial information prepared by the Accounts and Finance Department of the banks. These custom reports are often prepared manually due to weak MIS and reporting systems especially within the smaller BFIs. It may also be noted that countries falling under the European Commission have a UCOA as per the tax regulatory format. However, there is no such UCOA which has been prescribed by Inland Revenue Department (IRD), which is the tax regulator in Nepal. The exhibit below, highlights some primarily process-related issues that are often caused by lack of common chart of accounts and reference structures. Issues in the current COA Using the uniform chart of accounts (UCOA) supported by the Supervisory Information System (SIS) across the BFIs, the financial information can be uniformly processed and aggregated into operating classifications such as sectoral exposure, product lines, profitability, or other specific needs of the NRB and other regulators. This uniformity would enable greater comparability of financial data and information across banks in Nepal as well as internationally, once the accounting and financial data across the Nepalese banks is recast and measured based on IFRS. The need for introduction of UCOA has also been highlighted by the international institutions like the International Monetary Fund (IMF) and the World Bank which routinely assesses risks and vulnerabilities to stability of the financial sector of Nepal as part of the Financial Sector Assessment Program (FSAP). Advantages of UCOA 3

4 2. Uniform Chart of Accounts 2.1 Supervisory Information Directive 9 requires banking and financial statistics for evaluation and analysis of the economic, monetary and financial activities in the country and for carrying out offsite supervision of BFIs. Information required by Directive 9 is pivotal in establishing financial standing of the Banks, its risk exposure as well as their capital and liquidity position. Chart of Accounts intends to complement or supplement the supervisory requirements as much as possible and acknowledges that there are some variations in requirements of organizations which may be required to be accommodated. Although COA is not a reporting tool but it acts as a basis to assist organizations in generating information for statutory reporting. UCOA structure stipulates the Regulatory Reporting Requirements which includes heads under which information needs to be reported by the BFIs. These heads can be referred to as sub-fields. The sub-fields are accompanied with Master Data, which includes the possible items under each sub-field as given in Directive 9. At the time of entering a transaction, the accountant would need to post information under all active sub-fields from a pre-populated drop down list (referred to as Master Data in the UCOA) which would be embedded in the Banking Software. Supervisory Reports as required by Directive 9 would then be auto generated from the system itself. This exercise would help to strengthen financial integrity and eliminate the need to manually gather data. At an enterprise level, the risk of non-compliance with delay in submission of report to NRB will be mitigated with well-designed UCOA backed up by capture of supervisory data inputs at the transaction stage to an appreciable extent. Example of Sub-fields for Regulatory Reporting 4

5 2.2 Coding The Chart of Accounts is a listing of all accounts used in the general ledger of an organization. The chart is used by the accounting software of a Company to aggregate information into an entity's financial statements. The chart is usually sorted in order by an account number, to ease the task of locating specific accounts. The accounts are usually numeric, but can also be alphabetic or alphanumeric. Uniform Chart of Accounts is based on classification of accounts according to the economic essence and includes the accounts necessary for entering in the bookkeeping of operations that may occur within the banks, the contents, destination and description of each account. In the UCOA, a numeric coding structure has been employed wherein each account would be identified by a 9 digit numeric code. The numbering has been kept flexible as it follows a generally accepted principles approach as given below: Coding for 7 classes In order to emphasize the group of accounts within classes and separate accounts or sub-classes within groups, the hierarchical principle has been used. The hierarchy of classes, groups, sub-classes shall be reflected by the system of numerical notations consisting of nine digits: The chart of accounts has been devised using only 4 sub class levels, keeping in mind the existing Banking Software used by the BFIs, such that the existing systems wouldn t require to undergo a major overhaul. Restricting the number of digits to say 9 would also ensure, ease in implementation of UCOA across BFIs in Nepal. The following Exhibits illustrate the process for codification of Equity Derivation of number of digits 5

6 Illustration on 9 digit codification of Equity 2.3 Reference to NAS/NFRS IFRS, which provides for drafting of true and fair financial statements, is of great importance not only for banks themselves but also for all their stakeholders, including both internal (owners, management, employees) and external (the existing and potential investors and creditors, the other participants in the market, regulatory/ governmental bodies, statisticians, etc.) stakeholders. Accordingly, The Institute of Chartered Accountants of Nepal has issued 27 Nepal Accounting Standards (NAS) and 13 Nepal Financial Reporting Standards (NFRS) for entities in Nepal. UCOA includes references to NAS and NFRS wherever appropriate. Updates to these references will need to occur on a regular basis. 6

7 Account Code Broad Account Head Sub - Classification L1 Sub - Classification L2 Sub - Classification L Equity Share Capital Share Capital Ordinary Share Capital Share Capital Ordinary Share Capital Promoter Ordinary Shares Share Capital Ordinary Share Capital Promoter Ordinary Shares Institutional - Local Share Capital Ordinary Share Capital Promoter Ordinary Shares Institutional - Foreign Share Capital Ordinary Share Capital Promoter Ordinary Shares Individuals - Local Share Capital Ordinary Share Capital Promoter Ordinary Shares Individuals - Foreign Share Capital Ordinary Share Capital Public Ordinary Shares Share Capital Ordinary Share Capital Public Ordinary Shares Institutional - Local Share Capital Ordinary Share Capital Public Ordinary Shares Institutional - Foreign Share Capital Ordinary Share Capital Public Ordinary Shares Individuals - Local Share Capital Ordinary Share Capital Public Ordinary Shares Individuals - Foreign Share Capital Ordinary Share Capital Shares through exercise of Options Share Capital Ordinary Share Capital Treasury Shares Share Capital Ordinary Share Capital Others Share Capital Ordinary Share Capital Others Share issue expenses Share Capital Preference Share Capital Share Capital Preference Share Capital Convertible Preference Share (Equity Component) Share Capital Preference Share Capital Non-Redeemable Preference Share (Equity Component) Share Capital Preference Share Capital Treasury Shares Share Capital Preference Share Capital Others Bonds Bonds Convertible Bond (Equity Component) Bonds Perpetual Bond (Equity Component) Bonds Others Reserves & Surplus Reserves & Surplus Statutory Reserves Reserves & Surplus Statutory Reserves General Reserve Reserves & Surplus Statutory Reserves Exchange Equalization Fund Reserves & Surplus Statutory Reserves Capital Reserve Fund Reserves & Surplus Statutory Reserves Special Reserve Reserves & Surplus Statutory Reserves Investment Adjustment Fund Reserves & Surplus Statutory Reserves Capital Redemption Reserve Reserves & Surplus Statutory Reserves Debenture Redemption Reserve Reserves & Surplus Statutory Reserves Housing Reserve Reserves & Surplus Statutory Reserves Corporate Social Responsibility Fund Reserves & Surplus Statutory Reserves Other Reserves Reserves & Surplus Non Statutory Reserve Reserves & Surplus Non Statutory Reserve Assets Revaluation Reserve 7

8 Account Code Broad Account Head Sub - Classification L1 Sub - Classification L2 Sub - Classification L Reserves & Surplus Non Statutory Reserve Assets Revaluation Reserve On Property, Plant & Equipment Reserves & Surplus Non Statutory Reserve Assets Revaluation Reserve On Intangible Assets Reserves & Surplus Non Statutory Reserve Assets Revaluation Reserve On Investment Property Reserves & Surplus Non Statutory Reserve Institutional Development Fund Reserves & Surplus Non Statutory Reserve Contingency Reserve Reserves & Surplus Non Statutory Reserve Dividend Equalization Fund Reserves & Surplus Non Statutory Reserve Foreign Currency Translation Reserve Reserves & Surplus Non Statutory Reserve Fair Value through OCI Reserve Reserves & Surplus Non Statutory Reserve Hedging Reserves Reserves & Surplus Non Statutory Reserve Hedging Reserves Fair value hedge Reserves & Surplus Non Statutory Reserve Hedging Reserves Cash flow hedge Reserves & Surplus Non Statutory Reserve Sinking Fund Reserves & Surplus Non Statutory Reserve Staff Related Reserve Fund Reserves & Surplus Non Statutory Reserve Actuarial Gain/Loss Reserve Reserves & Surplus Non Statutory Reserve Deferred Tax Reserve Reserves & Surplus Non Statutory Reserve Capital Adjustment Fund Reserves & Surplus Non Statutory Reserve Other Reserve Securities Premium Securities Premium Ordinary Shares Securities Premium Preference Shares Retained Earning Profit & Loss Account Call in Advance Call in Arrear 8

9 Account Code Broad Account Head Sub - Classification L1 Sub - Classification L2 Sub - Classification L3 Regulatory Reporting Guidelines Liabilities Trading Liabilities It should include the following details Trading Liabilities Non - Derivatives 1. Currency Trading Liabilities Non - Derivatives Pledged 2. Name of Institution Trading Liabilities Non - Derivatives Pledged Short sold positions - debt 3. Class of Institution Trading Liabilities Non - Derivatives Pledged Short sold positions - equity 4. Collateral Trading Liabilities Non - Derivatives Non-Pledged Trading Liabilities Non - Derivatives Non-Pledged Short sold positions - debt 5. Interest Rates Trading Liabilities Non - Derivatives Non-Pledged Short sold positions - equity Trading Liabilities Derivatives Trading Liabilities Derivatives Pledged Trading Liabilities Derivatives Pledged Interest rate Trading Liabilities Derivatives Pledged Credit Trading Liabilities Derivatives Pledged Equity Trading Liabilities Derivatives Pledged Foreign exchange Trading Liabilities Derivatives Pledged OTC structured derivatives Trading Liabilities Derivatives Non-Pledged Trading Liabilities Derivatives Non-Pledged Interest rate Trading Liabilities Derivatives Non-Pledged Credit Trading Liabilities Derivatives Non-Pledged Equity Trading Liabilities Derivatives Non-Pledged Foreign exchange Trading Liabilities Derivatives Non-Pledged OTC structured derivatives Derivative liabilities held for risk management Derivative liabilities held for risk management Derivative liabilities held for risk management Derivative liabilities held for risk management Derivative liabilities held for risk management Interest rate Credit Equity Foreign exchange Deposits from BFIs Deposits from BFIs VOSTRO Account Deposits from BFIs VOSTRO Account LCY Deposits from BFIs VOSTRO Account FCY Deposits from BFIs Money market deposits Deposits from BFIs Money market deposits LCY Deposits from BFIs Money market deposits FCY Deposits from BFIs Sale and repurchase agreements 9 It should include the following details - 1. Currency 2. Name of Institution/ Individual 3. Class of Institution for Deposits 4. Interest Rate

10 Deposits from BFIs Sale and repurchase agreements LCY Deposits from BFIs Sale and repurchase agreements FCY Deposits from BFIs Other deposits from banks Deposits from BFIs Other deposits from banks LCY Deposits from BFIs Other deposits from banks FCY Deposits from Customer Deposits from Customer Term Deposits Deposits from Customer Term Deposits Fixed Deposits - LCY Deposits from Customer Term Deposits Fixed Deposits - FCY Deposits from Customer Term Deposits Matured Fixed Deposits - LCY Deposits from Customer Term Deposits Matured Fixed Deposits - FCY Deposits from Customer Term Deposits Other Term Deposits - LCY Deposits from Customer Term Deposits Other Term Deposits - FCY Deposits from Customer Savings Deposits Deposits from Customer Savings Deposits LCY Deposits from Customer Savings Deposits FCY Deposits from Customer Current Deposits Deposits from Customer Current Deposits LCY Deposits from Customer Current Deposits FCY Deposits from Customer Call Deposit Deposits from Customer Call Deposit LCY Deposits from Customer Call Deposit FCY Deposits from Customer Margin Deposits Deposits from Customer Deposits from Customer Margin Deposits Margin Account Letter of Credit - LCY Margin Account Letter of Credit - FCY Margin Deposits Deposits from Customer Margin Deposits Margin Account Guarantee - LCY Deposits from Customer Margin Deposits Margin Account Guarantee - FCY Deposits from Customer Margin Deposits Other Margin Deposits - LCY Deposits from Customer Margin Deposits Other Margin Deposits - FCY Deposits from Customer Certificate of Deposits Deposits from Customer Certificate of Deposits LCY Deposits from Customer Certificate of Deposits FCY Deposits from Customer Other Deposits Deposits from Customer Other Deposits LCY Deposits from Customer Other Deposits FCY It should include the following details - 1. Currency 2. Name of Institution/ Individual 3. Class of Institution for Deposits 4. Interest Rate 5. Type of Margin Account ( applicable for Margin Deposits) Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ At amortized cost At amortized cost NRB refinancing - LCY 10 It should include the following details - 1. Currency 2. Name of Institution/ Individual 3. Class of Institution 4. Tenure 5. Interest Rate

11 Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ At amortized cost At amortized cost At amortized cost At amortized cost At amortized cost At amortized cost At amortized cost At amortized cost At amortized cost At amortized cost At amortized cost At amortized cost At amortized cost At amortized cost At amortized cost At amortized cost At amortized cost At amortized cost At amortized cost At amortized cost At amortized cost At amortized cost NRB refinancing - FCY NRB loan - LCY NRB loan - FCY Repos - LCY Repos - FCY Lender of last resort - LCY Lender of last resort - FCY Standing Liquidity Facility - LCY Standing Liquidity Facility - FCY Other borrowings from NRB - LCY Other borrowings from NRB - FCY Inter Bank/ Financial Institutions - LCY Inter Bank/ Financial Institutions - FCY from Nepal Government LCY from Nepal Government FCY Debentures - LCY Debentures - FCY Bonds - LCY Bonds - FCY Refinance Borrowing - LCY Refinance Borrowing - FCY Others - LCY 5. Interest Rate 11

12 Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ At amortized cost At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss Others - FCY NRB refinancing - LCY NRB refinancing - FCY NRB loan - LCY NRB loan - FCY Repos - LCY Repos - FCY Lender of last resort - LCY Lender of last resort - FCY Standing Liquidity Facility - LCY Standing Liquidity Facility - FCY Other borrowings from NRB - LCY Other borrowings from NRB - FCY Inter Bank/ Financial Institutions - LCY Inter Bank/ Financial Institutions - FCY from Nepal Government LCY from Nepal Government FCY Debentures - LCY Debentures - FCY Bonds - LCY Bonds - FCY 12

13 Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ Debt Securities issued/ At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss At fair value through profit or loss Refinance Borrowing - LCY Refinance Borrowing - FCY Other - LCY Other - FCY Subordinated Liabilities Subordinated Liabilities At amortized cost Subordinated Liabilities At amortized cost Redeemable Preference Share LCY Subordinated Liabilities At amortized cost Redeemable Preference Share FCY It should include the following details - 1. Currency 2. Name of Institution/ Individual 3. Class of Institution 4. Tenure Subordinated Liabilities At amortized cost Non-Convertible Preference Share LCY Subordinated Liabilities At amortized cost Non-Convertible Preference Share FCY Subordinated Liabilities At amortized cost Other Preference Share (debt portion only) LCY Subordinated Liabilities At amortized cost Other Preference Share (debt portion only) FCY Subordinated Liabilities At amortized cost Subordinated Notes issued LCY Subordinated Liabilities At amortized cost Subordinated Notes issued FCY Subordinated Liabilities At amortized cost Subordinated Debenture LCY Subordinated Liabilities At amortized cost Subordinated Debenture FCY Subordinated Liabilities At amortized cost Subordinated Bonds LCY Subordinated Liabilities At amortized cost Subordinated Bonds FCY Subordinated Liabilities At amortized cost Others LCY Subordinated Liabilities At amortized cost Others FCY Subordinated Liabilities Designated as at fair value through profit or loss Subordinated Liabilities Designated as at fair value Redeemable Preference Share LCY through profit or loss Subordinated Liabilities Designated as at fair value Redeemable Preference Share FCY through profit or loss Subordinated Liabilities Designated as at fair value through profit or loss Non-Convertible Preference Share LCY Subordinated Liabilities Designated as at fair value through profit or loss Non-Convertible Preference Share FCY Subordinated Liabilities Designated as at fair value Other Preference Share (debt portion through profit or loss Subordinated Liabilities Designated as at fair value through profit or loss only) LCY Other Preference Share (debt portion only) FCY 13

14 Subordinated Liabilities Designated as at fair value through profit or loss Subordinated Liabilities Designated as at fair value through profit or loss Subordinated Liabilities Designated as at fair value through profit or loss Subordinated Liabilities Designated as at fair value through profit or loss Subordinated Liabilities Designated as at fair value through profit or loss Subordinated Liabilities Designated as at fair value through profit or loss Subordinated Liabilities Designated as at fair value through profit or loss Subordinated Liabilities Designated as at fair value through profit or loss Subordinated Notes issued LCY Subordinated Notes issued FCY Subordinated Debenture LCY Subordinated Debenture FCY Subordinated Bonds LCY Subordinated Bonds FCY Others LCY Others FCY Current Tax Liabilities Current Tax Liabilities Provision for Income Tax Current Tax Liabilities Interest Payable on Income Tax Current Tax Liabilities Fees Payable on Income Tax Current Tax Liabilities Penalty Payable on Income Tax Current Tax Liabilities Other Taxes Provisions Provisions Provision for Redundancy Provisions Provision for Branch Closure Provisions Provision for Onerous Contracts Provisions Provision for bank levies Provisions Provision on loans given to related parties Provisions Provision on loans given to problematic banks Provisions Other Provisions Allowances for Impairment Allowances for Impairment Investments held at amortized cost Allowances for Impairment Investments held at amortized cost Treasury Bills LCY Allowances for Impairment Investments held at amortized cost Treasury Bills FCY Allowances for Impairment Investments held at amortized cost Development Bonds LCY Allowances for Impairment Investments held at amortized cost Development Bonds FCY Allowances for Impairment Investments held at amortized cost National Saving Bond LCY Allowances for Impairment Investments held at amortized cost National Saving Bond FCY Allowances for Impairment Investments held at amortized cost Special Bonds LCY Allowances for Impairment Investments held at amortized cost Special Bonds FCY 14

15 Allowances for Impairment Investments held at amortized cost Reverse Repo LCY Allowances for Impairment Investments held at amortized cost Reverse Repo FCY Allowances for Impairment Investments held at amortized cost NRB Bonds LCY Allowances for Impairment Investments held at amortized cost NRB Bonds FCY Allowances for Impairment Investments held at amortized cost NRB Deposit Auction LCY Allowances for Impairment Investments held at amortized cost NRB Deposit Auction FCY Allowances for Impairment Investments held at amortized cost Domestic Corporate Bonds LCY Allowances for Impairment Investments held at amortized cost Domestic Corporate Bonds FCY Allowances for Impairment Investments held at amortized cost Foreign Corporate Bonds LCY Allowances for Impairment Investments held at amortized cost Foreign Corporate Bonds FCY Allowances for Impairment Investments held at amortized cost Foreign Government Bonds LCY Allowances for Impairment Investments held at amortized cost Foreign Government Bonds FCY Allowances for Impairment Investments held at amortized cost Debentures LCY Allowances for Impairment Investments held at amortized cost Debentures FCY Allowances for Impairment Investments held at amortized cost Bonds LCY Allowances for Impairment Investments held at amortized cost Bonds FCY Allowances for Impairment Investments held at amortized cost Other Debt securities LCY Allowances for Impairment Investments held at amortized cost Other Debt securities FCY Allowances for Impairment Investments held at amortized cost Mutual Fund LCY Allowances for Impairment Investments held at amortized cost Mutual Fund FCY Allowances for Impairment Investments held at amortized cost Certificate of Deposits LCY Allowances for Impairment Investments held at amortized cost Certificate of Deposits FCY Allowances for Impairment Investments held at amortized cost Fixed deposits held with banks LCY Allowances for Impairment Investments held at amortized cost Fixed deposits held with banks FCY Allowances for Impairment Investments held at amortized cost Preference Shares LCY Allowances for Impairment Investments held at amortized cost Preference Shares FCY Allowances for Impairment Investments held at amortized cost Investment in Subsidiary Allowances for Impairment Investments held at amortized cost Investment in Joint Venture Allowances for Impairment Investments held at amortized cost Investment in Associates Allowances for Impairment Investments held at amortized cost Others LCY Allowances for Impairment Investments held at amortized cost Others FCY Allowances for Impairment Investments held at FVOCI Allowances for Impairment Investments held at FVOCI Others LCY Allowances for Impairment Investments held at FVOCI Others FCY Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized Term Loan LCY cost Allowances for Impairment Loans & Advances at amortized Term Loan FCY cost Allowances for Impairment Loans & Advances at amortized Demand & Other Working Capital cost Allowances for Impairment Loans & Advances at amortized cost LCY Demand & Other Working Capital FCY 15

16 Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Allowances for Impairment Loans & Advances at amortized cost Residential Home Loan LCY Residential Home Loan FCY Real Estate Loan LCY Real Estate Loan FCY Hire Purchase Loans LCY Hire Purchase Loans FCY Overdraft LCY Overdraft FCY Trust Receipt Loan/Import Loan LCY Trust Receipt Loan/Import Loan FCY Bills Purchased LCY Bills Purchased FCY Repurchase Agreement LCY Repurchase Agreement FCY Securities Borrowing LCY Securities Borrowing FCY Loans Against Collected Bills - Domestic LCY Loans Against Collected Bills - Domestic FCY Loans Against Collected Bills - Foreign LCY Loans Against Collected Bills - Foreign FCY Mortgage Lending LCY Mortgage Lending FCY 16

17 Allowances for Impairment Loans & Advances at amortized Margin Nature Loan LCY cost Allowances for Impairment Loans & Advances at amortized Margin Nature Loan FCY cost Allowances for Impairment Loans & Advances at amortized Packing Credits LCY cost Allowances for Impairment Loans & Advances at amortized Packing Credits FCY cost Allowances for Impairment Loans & Advances at amortized cost Lending Commitments - Held for Trading LCY Allowances for Impairment Loans & Advances at amortized cost Lending Commitments - Held for Trading FCY Allowances for Impairment Loans & Advances at amortized Auto Loan LCY cost Allowances for Impairment Loans & Advances at amortized Auto Loan FCY cost Allowances for Impairment Loans & Advances at amortized Personal Loan LCY cost Allowances for Impairment Loans & Advances at amortized Personal Loan FCY cost Allowances for Impairment Loans & Advances at amortized Receivable on Credit Card LCY cost Allowances for Impairment Loans & Advances at amortized Receivable on Credit Card FCY cost Allowances for Impairment Loans & Advances at amortized Finance lease receivables LCY cost Allowances for Impairment Loans & Advances at amortized Finance lease receivables FCY cost Allowances for Impairment Loans & Advances at amortized Others LCY cost Allowances for Impairment Loans & Advances at amortized Others FCY cost Allowances for Impairment Loans & Advances at FVOCI Allowances for Impairment Loans & Advances at FVOCI Term Loan LCY Allowances for Impairment Loans & Advances at FVOCI Term Loan FCY Allowances for Impairment Loans & Advances at FVOCI Demand & Other Working Capital LCY Allowances for Impairment Loans & Advances at FVOCI Demand & Other Working Capital FCY Allowances for Impairment Loans & Advances at FVOCI Residential Home Loan LCY Allowances for Impairment Loans & Advances at FVOCI Residential Home Loan FCY Allowances for Impairment Loans & Advances at FVOCI Real Estate Loan LCY Allowances for Impairment Loans & Advances at FVOCI Real Estate Loan FCY Allowances for Impairment Loans & Advances at FVOCI Hire Purchase Loans LCY Allowances for Impairment Loans & Advances at FVOCI Hire Purchase Loans FCY 17

18 Allowances for Impairment Loans & Advances at FVOCI Overdraft LCY Allowances for Impairment Loans & Advances at FVOCI Overdraft FCY Allowances for Impairment Loans & Advances at FVOCI Trust Receipt Loan/Import Loan LCY Allowances for Impairment Loans & Advances at FVOCI Trust Receipt Loan/Import Loan FCY Allowances for Impairment Loans & Advances at FVOCI Bills Purchased LCY Allowances for Impairment Loans & Advances at FVOCI Bills Purchased FCY Allowances for Impairment Loans & Advances at FVOCI Repurchase Agreement LCY Allowances for Impairment Loans & Advances at FVOCI Repurchase Agreement FCY Allowances for Impairment Loans & Advances at FVOCI Securities Borrowing LCY Allowances for Impairment Loans & Advances at FVOCI Securities Borrowing FCY Allowances for Impairment Loans & Advances at FVOCI Loans Against Collected Bills - Domestic LCY Allowances for Impairment Loans & Advances at FVOCI Loans Against Collected Bills - Domestic FCY Allowances for Impairment Loans & Advances at FVOCI Loans Against Collected Bills - Foreign LCY Allowances for Impairment Loans & Advances at FVOCI Loans Against Collected Bills - Foreign FCY Allowances for Impairment Loans & Advances at FVOCI Mortgage Lending LCY Allowances for Impairment Loans & Advances at FVOCI Mortgage Lending FCY Allowances for Impairment Loans & Advances at FVOCI Margin Nature Loan LCY Allowances for Impairment Loans & Advances at FVOCI Margin Nature Loan FCY Allowances for Impairment Loans & Advances at FVOCI Packing Credits LCY Allowances for Impairment Loans & Advances at FVOCI Packing Credits FCY Allowances for Impairment Loans & Advances at FVOCI Lending Commitments - Held for Trading LCY Allowances for Impairment Loans & Advances at FVOCI Lending Commitments - Held for Trading FCY Allowances for Impairment Loans & Advances at FVOCI Auto Loan LCY Allowances for Impairment Loans & Advances at FVOCI Auto Loan FCY Allowances for Impairment Loans & Advances at FVOCI Personal Loan LCY Allowances for Impairment Loans & Advances at FVOCI Personal Loan FCY Allowances for Impairment Loans & Advances at FVOCI Receivable on Credit Card LCY Allowances for Impairment Loans & Advances at FVOCI Receivable on Credit Card FCY Allowances for Impairment Loans & Advances at FVOCI Others LCY Allowances for Impairment Loans & Advances at FVOCI Others FCY Allowances for Impairment Investment Property Allowances for Impairment Property & Equipment Allowances for Impairment Property & Equipment Building Allowances for Impairment Property & Equipment IT Equipment Allowances for Impairment Property & Equipment Fixture & Fittings Allowances for Impairment Property & Equipment Office Equipment & Appliances Allowances for Impairment Property & Equipment Vehicles Allowances for Impairment Property & Equipment Machinery 18

19 Allowances for Impairment Intangible Assets and Goodwill Allowances for Impairment Intangible Assets and Goodwill Goodwill Allowances for Impairment On Non-Banking Assets Allowances for Impairment Group impairment Accumulated Depreciation and Amortization of Intangibles Accumulated Depreciation and Amortization of Intangibles Accumulated Depreciation and Amortization of Intangibles Accumulated Depreciation and Amortization of Intangibles Accumulated Depreciation and Amortization of Intangibles Accumulated Depreciation and Amortization of Intangibles Accumulated Depreciation and Amortization of Intangibles Accumulated Depreciation and Amortization of Intangibles Accumulated Depreciation and Amortization of Intangibles Accumulated Depreciation and Amortization of Intangibles Accumulated Depreciation and Amortization of Intangibles Accumulated Depreciation and Amortization of Intangibles Accumulated Depreciation and Amortization of Intangibles Accumulated Depreciation Accumulated Depreciation Accumulated Depreciation Accumulated Depreciation Accumulated Depreciation Accumulated Depreciation Accumulated Depreciation Accumulated Depreciation Amortization of Intangibles Amortization of Intangibles Amortization of Intangibles Amortization of Intangibles Building IT Equipment Fixture & Fittings Office Equipment & Appliances Vehicles Machinery Others Software - Purchased Trademark Mortgage Serving Rights 19

20 Accumulated Depreciation and Amortization of Intangibles Accumulated Depreciation and Amortization of Intangibles Accumulated Depreciation and Amortization of Intangibles Amortization of Intangibles Amortization of Intangibles Amortization of Intangibles Patents Copyrights Others Deferred Tax Liabilities Deferred Tax Liabilities Deferred Tax Liabilities on Temporary Difference Deferred Tax Liabilities Deferred Tax Liabilities on Temporary Difference Deferred Tax Liabilities Deferred Tax Liabilities on Temporary Difference Deferred Tax Liabilities Deferred Tax Liabilities on Temporary Difference Deferred Tax Liabilities Deferred Tax Liabilities on Carry forward of Unused Tax Losses Deferred Tax Liabilities Deferred Tax Liabilities on Carry forward of Unused Tax Losses Deferred Tax Liabilities Deferred Tax Liabilities on Carry forward of Unused Tax Losses Deferred Tax Liabilities Deferred Tax Liabilities on Carry forward of Unused Tax Losses Other Liabilities Other Liabilities Liability for Defined Benefit Obligation Other Liabilities Liability for Defined Benefit Obligation Other Liabilities Liability for Defined Benefit Obligation Other Liabilities Liability for Defined Benefit Obligation Other Liabilities Liability for Defined Contribution Plan Other Liabilities Liability for Defined Contribution Plan Deferred Tax Liabilities on Temporary Difference recognized in PL Deferred Tax Liabilities on Temporary Difference recognized in OCI Deferred Tax Liabilities on Temporary Differences recognized Directly in Equity Deferred Tax Liabilities on Unused Tax Losses Recognized in PL Deferred Tax Liabilities on Unused Tax Losses Recognized in OCI Deferred Tax Liabilities on Unused Tax Losses recognized Directly in Equity Pension Fund Gratuity Fund Other Retirement Fund Staff Provident Fund 20

21 Other Liabilities Liability for Defined Contribution Employee Life Insurance Fund Plan Other Liabilities Liability for long-service leave Other Liabilities Cash settled share based payment liability Other Liabilities Other employee benefits Other Liabilities Other employee benefits Staff Welfare Fund Other Liabilities Other employee benefits Staff Training Fund Other Liabilities Other employee benefits Provision for Staff Bonus Other Liabilities Other employee benefits Staff Medical Fund Other Liabilities Other employee benefits Other Funds Other Liabilities Financial guarantee contracts issued Other Liabilities Creditors and accruals Other Liabilities Creditors and accruals Sundry Creditors Other Liabilities Creditors and accruals Sundry Creditors Retention payable Other Liabilities Creditors and accruals Sundry Creditors Supplier payable Other Liabilities Creditors and accruals Sundry Creditors Others Other Liabilities Sundry Creditors for Expenses/ Creditors and accruals Accrued Expenses Other Liabilities Sundry Creditors for Expenses/ Statutory Audit fee Creditors and accruals Accrued Expenses Other Liabilities Sundry Creditors for Expenses/ Internal Audit fee Creditors and accruals Accrued Expenses Other Liabilities Sundry Creditors for Expenses/ Tax Audit fee Creditors and accruals Accrued Expenses Other Liabilities Sundry Creditors for Expenses/ System Audit fee Creditors and accruals Accrued Expenses Other Liabilities Sundry Creditors for Expenses/ Other Audit fees Creditors and accruals Accrued Expenses Other Liabilities Sundry Creditors for Expenses/ Lease Expense payable Creditors and accruals Accrued Expenses Other Liabilities Sundry Creditors for Expenses/ Other accrued expenses Creditors and accruals Accrued Expenses Other Liabilities Creditors and accruals Bills Payable Other Liabilities Creditors and accruals Bills Payable Stale Drafts Other Liabilities Creditors and accruals Bills Payable T.T/Fax Transfers Other Liabilities Creditors and accruals Bills Payable Old Manager Cheques Other Liabilities Creditors and accruals Bills Payable Cash Suspense Other Liabilities Creditors and accruals Bills Payable Demand Draft Other Liabilities Creditors and accruals Bills Payable Mail Transfer Other Liabilities Creditors and accruals Bills Payable Manager cheque Other Liabilities Creditors and accruals Bills Payable Pay order Other Liabilities Creditors and accruals Bills Payable Bills Payable under Letter of Credit Other Liabilities Creditors and accruals Bills Payable Others 21

22 Other Liabilities Creditors and accruals Interest Payable on Deposits Other Liabilities Interest Payable on Debt securities Creditors and accruals issued Other Liabilities Interest Payable on Debt securities NRB Re-financing Creditors and accruals issued Other Liabilities Interest Payable on Debt securities Loans from NRB Creditors and accruals issued/ Other Liabilities Interest Payable on Debt securities NRB - Repo financing Creditors and accruals issued/ Other Liabilities Interest Payable on Debt securities Lender of last resort Creditors and accruals issued/ Other Liabilities Interest Payable on Debt securities Standing Liquidity Facility Creditors and accruals issued/ Other Liabilities Interest Payable on Debt securities Inter bank borrowing Creditors and accruals issued/ Other Liabilities Interest Payable on Debt securities from Nepal Government Creditors and accruals issued/ Other Liabilities Interest Payable on Debt securities Debentures Creditors and accruals issued/ Other Liabilities Interest Payable on Debt securities Bonds Creditors and accruals issued/ Other Liabilities Interest Payable on Debt securities Re-finance borrowing Creditors and accruals issued/ Other Liabilities Interest Payable on Debt securities Others Creditors and accruals issued/ Other Liabilities Creditors and accruals Payables Other Liabilities Creditors and accruals Payables Remittance Payable Other Liabilities Creditors and accruals Payables Forward Contract Payable Other Liabilities Creditors and accruals Payables Payable to clearing house Other Liabilities Creditors and accruals Payables Credit Card - VISA Other Liabilities Creditors and accruals Payables Credit Card - MasterCard Other Liabilities Creditors and accruals Payables Credit Card - Diners club Other Liabilities Creditors and accruals Payables Credit Card - Others Other Liabilities Creditors and accruals Payables Payables in FCY Other Liabilities Creditors and accruals Interest Suspense Account Other Liabilities Others Other Liabilities Others Tax deducted at source Other Liabilities Others Tax deducted at source Rent Other Liabilities Others Tax deducted at source Salary Other Liabilities Others Tax deducted at source Royalty Other Liabilities Others Tax deducted at source Payment to non-resident Other Liabilities Others Tax deducted at source Contract Other Liabilities Others Tax deducted at source Service Fee Other Liabilities Others Tax deducted at source Lease payments Other Liabilities Others Tax deducted at source Audit fee 22