IAS 30

IAS 30, titled Disclosures in the Financial Statements of Banks and Similar Financial Institutions, was an International Accounting Standard issued by the International Accounting Standards Committee (IASC) and subsequently adopted by the International Accounting Standards Board (IASB).^[1] In August 2005, the IASB issued IFRS 7 Financial Instruments: Disclosures, which effectively withdrew IAS 30 for annual reporting periods beginning on or after 1 January 2007.^[2]

Background and Purpose

IAS 30 was developed to address the specific reporting needs of banks and similar financial institutions. At the time of its issuance, the standard-setters recognized that banks represented a distinct sector where liquidity and solvency were of paramount importance to users of financial statements.^[3] The standard aimed to provide a comprehensive framework for disclosing the risks associated with banking operations, such as liquidity risk, credit risk, and interest rate risk.

Key Disclosure Requirements

Under IAS 30, banks were required to provide specific disclosures in their income statements and balance sheets that went beyond the requirements for general commercial enterprises.^[4]

Income Statement and Balance Sheet Layout

Banks were required to group income and expenses by nature and disclose the amounts of principal types of income. Specific balance sheet items required to be disclosed included:^[5]

• Cash and balances with the central bank.
• Treasury bills and other eligible bills.
• Loans and advances to customers and other banks.
• Deposits from other banks and other depositors.

Maturity Analysis and Contingencies

A critical component of IAS 30 was the requirement to provide an analysis of assets and liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date.^[6]

Furthermore, banks had to disclose the nature and amount of any significant concentrations of their assets, liabilities, and off-balance sheet items, often categorized by geographical area or customer groups.^[7]

Withdrawal and Replacement

The IASB decided to withdraw IAS 30 to consolidate all financial instrument disclosure requirements into a single standard. The board noted that many of the disclosure requirements in IAS 30 were relevant not only to banks but to all entities that held financial instruments.^[8]

While IFRS 7 carried over many of the principles found in IAS 30—such as the emphasis on risk management and liquidity—it simplified the requirements and applied them to all sectors, ending the era of a dedicated disclosure standard for the banking industry.^[9]