PRU-EPRS 1.1 PRU-EPRS 1.1 Instructional Guidelines — Form B10 — Balance Sheet
Form B10 — The Balance sheet is intended to reflect the financial position of an
Authorised Firmat the end of the reporting period.
This form is applicable to
Authorised Firmscategorised under prudential categories 1, 2, 3A, 3B, 3C and 4. This form is not applicable to Authorised Firmsoperating through a Branchin the DIFC and Authorised Firmsmanaging Unrestricted PSIAs. Instead, Authorised Firmsmanaging Unrestricted PSIAsshould use form B20 and Branches should use form B90 along with the respective appendices. Content The form is designed to capture information pertaining to the Authorised Firm'son-balance sheet and off-balance sheet assets, liabilities and shareholders' equity at a given point in time.
Structure of the form in EPRS
B10 is presented as a single form.Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
PRU-EPRS 1.1 Instructional Guidelines
Item / Section No. Item / Section Instructional Guidelines On Balance sheet items B100_0110 Cash in hand & Gold bullion Include, for example, the following amounts:• Notes and coins; and• Long positions in Gold bullion (including Tola Bars). B100_0120 Balances with the Central Banks Amounts placed with central banks including funds required to be placed on deposit with central banks and monetary authorities. B100_0130 Money market placements Include Depositson call and other money market placements with banks or other money market participants. B100_0140 Treasury bills and other eligible bills Treasury bills issued by national governments or by Central Banks on behalf of governments. Also include bills issued by other entities, which are eligible for rediscounting with the central bank. B100_0211 Derivative financial instruments The assets reported here should include, but are not limited to, positions representing the following instruments, recorded at fair value:• Forward and Futures contracts in currencies, interest rates and other financial assets;• Forward rate agreements;• Currency and interest rate swaps;• Credit Derivatives; and• Option contracts on currency, interest rate and other financial assets.These Derivatives should include both the exchange-traded and over-the-counter versions.
Derivatives held for hedging purposes should be included under section B100_030T.
B100_0212 Other Financial instruments (held for trading) Include investments acquired principally for the purpose of selling or repurchasing them in the near term for short-term-profit-taking. This would include, but not be limited to, debt, equity and hybrid instruments. B100_0220 Other financial instruments — Designated at fair value through profit and loss Include all financial instruments which are, upon initial recognition, designated by the entity as financial assets to be measured at fair value through profit or loss other than the trading securities included in B100_0211 and B100_0212. B100_0230 Available-for-sale Include non-Derivative financial assets that are designated as available for sale by the firm or that have not been classified under any of the other categories of investments. B100_024011 01.2.5 Held-to-maturity Include non-Derivative financial assets with fixed or determinable payments and fixed maturities that the firm has a positive intention and ability to hold to maturity. B100_0310 and B100_0320 Derivatives — Hedge accounting -Fair value hedges -Cash flow hedges Include all the Derivative instruments held for the purposes of hedging. Derivatives held for trading should be accounted for under B100_0211. B100_040T Loans and advances Under this section include the amounts arising from, for example:• Revolving credit facilities;• Credit card outstanding balances;• Housing loans (both variable and fixed rates);• Term loans (both variable and fixed rates);• The book value of assets leased out under finance lease agreements;• Loans made under conditional hire purchase contracts;• Advances purchased by or assigned to the reporting institutions, factoring or similar arrangements; and• Other loans and advances.The items listed above are indicative examples and are not—exhaustive universe of items to be reported under this item.
The amounts reported should be gross of provisions (as specific and general provisions should be reported in the Liabilities section of the balance sheet) and net of interest receivable.
B100_0510 Murabaha and Istisna'a receivables Report here all receivables relating to Murabahaand Istisna'acontracts. Refer to FAS 2 and FAS 10 of AAOIFI respectively. B100_0520 Ijarah assets and receivables Include Ijarahassets net of depreciation/amortisation and Ijarahreceivables. Refer to FAS 8 of AAOIFI. B100_0530 Mudaraba Financing Financing provided on a Mudarababasis should be reported here. Refer to FAS 3 of AAOIFI. B100_0540 Musharaka Financing Report financing provided on a Musharakabasis. Refer to FAS 4 of AAOIFI. Investment in the Share capital of another company should be reported under "Other investments", under B100_0550. B100_0550 Other investments Include any other investments undertaken through Islamic Contracts, including Parallel Istisna'aassets (refer FAS 10 of AAOIFI) and capital provided on Salamcontracts (refer FAS 7 AAOIFI). B100_0700 Fixed assets Include, for example, the value of the following:• Plant and equipment, the residual value of items leased out under an operating lease (excluding balances relating to named Ijarahassets which should be included separately under B100_0520); and• Own premises being occupied or developed for occupation by theThe amounts reported here should be net of accumulated depreciation and amortisation. Authorised Firm, property (excluding property acquired / held available for sale which should be included in "Other Assets", B100_0920). B100_ 0810 Goodwill Include amounts relating to any purchased goodwill. B100_0820 Other intangible assets Included, for example:• Capitalised development costs;• Brand names, trademarks and similar rights; and• Licences and exchange seats which may be held as part of the Authorised Firm'strading requirement. Off Balance sheet items B100_1010 Direct credit substitutes These relate to the financial requirements imposed by a Counterpartywhere the risk of loss to the Authorised Firmon the Transaction is equivalent to that arising from a direct claim on the Counterparty. The indicative examples of items to be Included here are• Guarantees of a financial nature to stand behind the current obligations of Clients(e.g. loan guarantees);• Guarantees of leasing operations;• Letters of credit and Stand-by letters of credit to the extent that they do not qualify for inclusion in item B100_1030 "Trade related contingents" below;• Guarantees of a capital nature such as undertakings given to a non-bank financial company which are considered as capital by the appropriate regulatory body. Guarantees given to a company not connected to the reporting institution should be risk weighted at 100% and those for connected companies should be deducted from the reporting institution's capital base; and• Acceptances granted and risk participation in bankers' acceptances. Where the Authorised Firm'sown acceptances have been discounted by that institution the nominal value of the bills held should be deducted from the nominal amount of the bills issued under the facility and a corresponding on-balance sheet entry made. B100_1020 Transaction related contingents These Exposures relate to the on-going trading activities of a Counterpartywhere the risk of loss to the Authorised Firmdepends on the likelihood of a future event which is independent of the creditworthiness of the Counterparty. They are essentially guarantees that support particular non financial obligations rather than a Client's financial obligations. Include here:• Advance payment guarantees; and• Performance bonds including bid or tender bonds, warranties and indemnities (indemnities given for lost Share certificates or bills of lading and guarantees of the validity of papers rather than of payment under certain conditions should be reported here);Stand-by letters of credit relating to a particular contract or to non-financial Transactions (including arrangements backing, inter alia, subcontractors' and supplier's performance, labour and materials, contracts and construction tenders / bids). B100_1030 Trade related contingents Report short term self-liquidating trade related items such as documentary letters of credit issued by the Authorised Firmthat are collateralised by the underlying shipment i.e. the credit provides for the Authorised Firmto retain title to the underlying shipment. letters of credit issued without provision for the Authorised Firmto retain title to the underlying shipment should be reported under direct credit substitutes above. B100_1040 Sale and Repurchase Agreements In this item, report only the sale and repurchase agreements where the asset sold is not reported on the balance sheet. Where the asset is off-balance sheet, the appropriate Counterpartyweighting is determined by the issuer of the security and not according to the Counterpartywith whom the Transaction has been undertaken. B100_1050 Forward Assets Purchases The appropriate Counterpartyweighting should be determined by the asset to be purchased and not the Counterpartywith whom the contract has been entered into. Include commitments for loans and other on-balance sheet items with definitive drawdown schedules. Exclude foreign currency spot Deposits with value date of up to two business days after trade date. B100_1060 Forward Deposits Placed Relates to agreements between two parties whereby one will pay and the other receive an agreed rate of interest on a Deposit to be placed by one with the other at some pre-determined rate in the future. Exclude foreign currency spot Deposits with value date of up to two business days after trade date. B100_1070 Uncalled partly- paid shares and securities Include under this item calls with specific dates. If there is no specific date for a call, the item should be included as a long term commitment under item no. B100_1122 "Other Commitments". B100_1080 NIF's and RUF's Note issuance and revolving underwriting facilities should include the Authorised Firm'sunderwriting obligations of any maturity. Where the facility has been drawn down by the borrower and the notes are held by someone other than the Authorised Firm, the underwriting obligation should continue to be reported at the nominal amount. B100_1090 Endorsement of Bills These should be reported at the full nominal amount, less any amount for bills which the Authorised Firmcurrently holds but had previously endorsed. B100_1111 & B100 1122 Other commitments All other undrawn commitments are to be reported here, divided into commitments of maturity under and over one year. B100_1110 Assets funded by restricted PSIAs Total amount of assets managed under Restricted PSIAby the Authorised Firm. B100_210T Deposits In this section, identify and report Deposits due to banks and Financial Institutions in item no B100_2110. All other Deposits are to be reported as Deposits due to other Clients — item no B100_2120. B100_2310 Provisions for bad and doubtful debts All specific and general provisions in respect of all assets, including loans and advances and other receivables should be reported under this section. Exclude provisions against Islamic Contracts which should be reported in item no B100_2640. B100_2400 Derivative financial instruments — held for trading The indicative examples of liabilities to be reported under this item include, but are not limited to, liabilities arising out of positions representing the following instruments, recorded at fair value:• Forward and Futures contracts in currencies, interest rates and other financial assets;• Forward rate agreements;• Currency and interest rate swaps;• Credit Derivatives; and• Option contracts on currency, interest rate and other financial assets.The term includes both exchange-traded and over-the-counter Derivatives. Also include under this item other trading liabilities. B100_260T Liabilities arising from Islamic Contracts Liabilities arising from Islamic Contracts include advances received against Salamcontracts (defined in Para 3 and 19 of FAS 7 issued by AAOIFI and Ijarahinvestment payables (refer to FAS 8 of AAOIFI). Report any provisions against Islamic Contracts in item B100_2640. B100_3100 Liabilities relating to Restricted PSIA Include under this section, off-balance sheet liabilities related to restricted PSIA investments. B100_4110 Ordinary Shares Include in respect of this item the amount of ordinary Share capital issued, reported at nominal paid up value. Do not report the unpaid element of partly paid Shares or authorised but unissued Share capital. Authorised Firmsshould exclude holdings in their own Shares. B100_4120 Preference Shares Report the value of the preference Shares issued, which rank above ordinary Shares in the event of liquidation. B100_4130 Partnership Capital and other Include here other types of equity which have the same properties of permanent Share capital. This could include partnership capital accounts, capital items for unincorporated associations etc. B100_4200 Share premium account Any amounts received by the Authorised Firmin excess of the nominal paid up value. B100_4310 Asset revaluation reserve Include in this item, reserves arising from the revaluation of assets for which it has been necessary to set up this reserve. B100_4320 Goodwill reserve Include reserves arising from purchased goodwill or other situations for which it has been necessary to set up this or any other reserve. B100_4330 Investment Risk reserve Prudential category 5 Authorised Firmsshould include in respect of this item the amount that is appropriated out of the income of investment account holders, after allocating the Mudaribshare, in order to meet future losses attributable to investment account holders. Refer also to FAS 11 of AAOIFI. B100_4340 Profit Equalisation Reserve Prudential category 5 Authorised Firmsshould include in respect of this item the amount appropriated out of the Mudarabaincome, before allocating the Mudaribshare, in order to maintain a certain level of investment returns for investment account holders and to increase owners' equity. Refer also to FAS 11 of AAOIFI. B100_4350 General Reserve Include here all the reserves which have not been reported under any of the above categories in the section "Reserves" — B100_430T. B100_430T Total Reserves This is calculated by EPRS and is calculated by adding the items. B100_4310 + B100_4320 + B100_4330 + B100_4340+ B100_4350. B100_4500 Minority Interests Report amounts attributable to minority shareholders from the overall equity figure. B100_400T Total shareholders' equity This is calculated by EPRS as the sum of items B100_430T, B100_410T, B100_4200 and B100_4400 less B100_4500. B100_500T Total liabilities and shareholders' equity This is calculated by the EPRS as the sum of items B100_200T and B100_400T.Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]