Hong Kong Regulations

BANKING (DISCLOSURE) RULES - SECT 19

Income statement and equity information

(1) An authorized institution shall disclose for the interim  reporting period
particulars of—

   (a)  the institution's net gains or net losses on—

        (i)    financial assets or financial liabilities measured at fair
               value through profit or loss, showing separately the amount of
               net gains or net losses arising from financial assets or
               financial liabilities, as the case may be, which are— (A)
               designated as such upon initial recognition; and (B) classified
               as held for trading;

        (ii)   available-for-sale financial assets, showing separately the
               amount of net gains or net losses recognized directly in equity
               during the interim reporting period and the amount of net gains
               or net losses removed from equity and recognized in profit or
               loss for the interim reporting  period;

        (iii)  held-to-maturity investments;

        (iv)   loans and receivables; and

        (v)    financial liabilities measured at amortized cost;

   (b)  the institution's total interest income and total interest expense
        (calculated by using the effective interest method) for financial
        assets or financial liabilities which are not measured at fair value
        through profit or loss;

   (c)  the institution's fees and commission income and expense (other than
        amounts included in determining the effective interest rate) which
        arise from—

        (i)    financial assets or financial liabilities which are not
               measured at fair value through profit or loss; and

        (ii)   trust and other fiduciary activities which result in the
               holding or investing of assets on behalf of individuals,
               trusts, retirement benefits plans, and other entities;

   (d)  the institution's interest income on impaired financial assets;

   (e)  the institution's dividend income, broken down into receipts from
        listed and unlisted companies;

   (f)  the institution's operating expenses, broken down into—

        (i)    staff costs;

        (ii)   premises and equipment expenses, excluding depreciation charges
               (broken down if material);

        (iii)  depreciation charges; and

        (iv)   other operating expenses (broken down if material);

   (g)  the institution's net gains or net losses from the disposal or
        revaluation of investment properties;

   (h)  the institution's gains less losses from the disposal of property,
        plant and equipment;

   (i)  the institution's impairment losses and specific provisions and
        collective provisions for impaired assets, broken down into—

        (i)    available-for-sale financial assets;

        (ii)   held-to-maturity investments; and

        (iii)  loans and receivables;

   (j)  the institution's tax expenses or tax income, broken down into—

        (i)    Hong Kong tax;

        (ii)   overseas tax; and

        (iii)  deferred tax, if any; and

   (k)  the institution's transfers to or from reserves.

(2) Subject to subsection (3), an authorized institution shall disclose an
explanatory statement relating to the activities of the institution and its
profit (or loss) during the interim reporting period.

(3) An authorized institution shall ensure that a statement disclosed by it
pursuant to subsection (2)—

   (a)  includes any material information the disclosure of which is necessary
        for an informed assessment of the trend of the activities and profit
        (or loss) of the institution together with an indication of any
        special factor which has influenced those activities and the profit
        (or loss) during the interim reporting period; and

   (b)  enables a comparison to be made with the immediately preceding
        interim reporting period.

(4) An authorized institution shall, in relation to income and expense,
disclose the nature and amount of items of income and expense within profit or
loss where such items are of such size, nature or incidence that their
disclosure is necessary for understanding the performance of the institution
for the interim reporting period.