What changed
Previously, only commercial banks had to present unclaimed liabilities transferred to the DEA Fund under Schedule 12 – Contingent Liabilities. Now, cooperative banks must also show these under 'Contingent Liabilities – Others'. Additionally, all banks must explicitly disclose in notes to accounts that DEA Fund balances are included in contingent liabilities.
What it means for you
This ensures uniform presentation of DEA Fund-related liabilities across all bank types, improving comparability of financial statements. Banks need to update their financial reporting templates and disclosure notes to comply from FY24. Failure to adjust may lead to audit observations or regulatory non-compliance.
What you must do
- Update financial statement templates to classify DEA Fund transfers under 'Contingent Liabilities – Others' for cooperative banks.
- Add a specific note in disclosures stating that DEA Fund balances are included in contingent liabilities.
- Train finance teams on the revised presentation requirements for FY24 year-end reporting.
- Review past financial statements to ensure consistency from March 2024 onwards.
Who it affects
All commercial banks, All cooperative banks, Bank finance and accounting departments, Auditors reviewing financial statements
Does this apply to all banks or only certain types?
It applies to both commercial and cooperative banks for financial statements from FY ending March 2024.
What if my bank already shows DEA Fund transfers under contingent liabilities?
You still need to add a specific disclosure note in the notes to accounts confirming that DEA Fund balances are included in contingent liabilities.