Regulatory Alerts2013-09-29
Added
Reporting on Amounts Reclassified Outside of Accumulated Other Comprehensive Profit
The Supervision of Banks Policy updates reporting requirements for Israeli banking institutions to align with US Accounting Standards Update 2013-02 regarding the disclosure of amounts reclassified out of accumulated other comprehensive income. The amendments mandate that banks disclose additional information in their financial statements, specifically detailing non-interest income components and providing a reconciliation of changes in accumulated other comprehensive income. These updated reporting rules apply retrospectively to the first quarter of 2014 and subsequent periods.
Bank of Israel Supervision and Regulation Policy Tel: 03-5640520 Fax: 03-5661110 528 P.O.B., Tel Aviv-Yafo 61004 29 Tishrei 5773 September 30, 2013 Circular No. 2400-06
To: Banking Institutions and Credit Card Companies
Subject: Reporting on Amounts Reclassified Outside of Accumulated Other Comprehensive Income (Reporting Requirements)
Introduction
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In February 2013, the Financial Accounting Standards Board (FASB) published ASU 2013-02 regarding disclosure requirements for amounts reclassified out of accumulated other comprehensive income.
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In light of the aforementioned, the need arose to update the Reporting Requirements.
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After consulting with the Accountants' Association, the Supervision of Banks, and the Advisory Committee on Banking Matters, I have amended the Reporting Requirements as detailed below.
Amendments to the Requirements
- The Reporting Requirements shall be amended as specified in the Requirement.
Explanatory Remarks
- The amendments to the Reporting Requirements are intended to align the disclosure requirements with the updated requirements for amounts reclassified out of accumulated other comprehensive income, as is customary in the disclosures of banking institutions' financial statements under FASB.
Main Changes in the Reporting Requirements
5.1 An additional disclosure requirement has been added regarding the line item for profit (loss) on other comprehensive income. This includes profit (loss) reclassified out of accumulated other comprehensive income to the profit and loss statement.
5.2 A supplementary note has been added to clarify non-financing income. This clarifies the reclassification out of accumulated other comprehensive income.
Transition and Effective Provisions
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The provisions set forth in this circular shall apply retrospectively from the first quarter of 2014 and thereafter.
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A banking institution encountering difficulty in implementing the requirements should contact Mr. Eido Galil, Head of the Financial Reporting Unit.
Specific Guidelines
- Attached are pages updating the Reporting Requirements file. The update is as follows:
Page to Insert | Page to Remove (9/13) [18] 669-58 | (12/11) [17] 669-58 *(12/11) [4] 669-58.1 | (12/11) [4] 669-58.1 *(12/12) [3] 669-67.2 | (12/12) [3] 669-67.2 (9/13) [2] 669-67.3 | (12/12) [1] 669-67.3 *(3/12) [4] 680-23 | (3/12) [4] 680-23 (9/13) [5] 680-23.1 | (3/12) [4] 680-23.1 *(12/12) [1] 680-26 | (12/12) [1] 680-26 (9/13) [2] 680-27 | (12/12) [1] 680-27 (9/13) [1] 680-28 | ----- (9/13) [2] 699-108 | (9/13) [1] 699-108
- This page has been reprinted following the transition to double-sided printing. The printing is identical to the existing version.
With respect,
David Zaken Supervisor of Banks
(09/13) [18] Reporting Requirements: Supervision of Banks Annual Financial Statement Page 669-58
669-58.1 Page - Next
Note 21 - Non-financing Income
Banking Institution Consolidated
| 19X-2 | 19X0 | 19X-1 | 19X0 | 19X-2 | |
|---|---|---|---|---|---|
| Reported Amounts | |||||
| New Shekels in Millions | |||||
| **A. Non-financing income |
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