Master Direction on Financial Statements – Presentation and Disclosures
The Reserve Bank of India (RBI) has issued directions for the presentation and disclosure of financial statements, applicable to all banks.
The directions are divided into seven chapters, covering:
Chapter I: Preliminary – short title, commencement, and applicability.
Chapter II: Format of the Balance Sheet and Profit and Loss Account – specifies the format for presenting financial statements.
Chapter III: Notes and instructions for compilation – provides notes and instructions for compiling financial statements.
Chapter IV: Disclosure in financial statements – notes to accounts – outlines the disclosures required in financial statements.
Chapter V: Consolidated Financial Statements – deals with the preparation and presentation of consolidated financial statements.
Chapter VI: Other instructions – covers various other aspects, including:
– Inter-branch account provisioning for net debit balance
– Reconciliation of Nostro account and treatment of outstanding entries
– Transfer to/appropriation from Reserve funds
– Unreconciled balances
– Deferred tax liability on Special Reserve created under Section 36(1) (viii) of the Income Tax Act, 1961
– Window dressing
Chapter VII: Repeal and other provisions – deals with the repeal of existing circulars, application of other laws, and interpretations.
Chat with the Master Direction: