DISCLOSURE OF ACCOUNTS AND BALANCE SHEETS OF BANKS :

There are various types of users of the financial statements of banks like shareholders, investors, creditors, credit rating agencies, management students and others who need information about the financial position and performance of the banks. The financial statements are required to provide the information about the financial position and performance of the bank in making economic decisions by the users. The important information sought by these users are, about bank’s Liquidity and solvency and the risks related to the assets and liabilities recognized on its balance sheet and to its off balance sheet items This useful information can be provided by way of ‘Notes’ to the financial statements, being supplementary information for market discipline. Market discipline has been given due importance under Basel II framework on capital adequacy by recognizing it as one of its three Pillars. To cover the full and complete disclosure, some very useful information is better provided, or can only be provided, by notes to the financial statements. Hence notes become an integral part of the financials of banks. The users can make use of these notes and supplementary information to arrive at a meaningful decision.