VALUATION PRINCIPLES OF BANK RESERVES FOR CREDIT LOSSES IN AUSTRALIA Cover Image

Zasady wyceny bankowych rezerw na straty kredytowe w Australii
VALUATION PRINCIPLES OF BANK RESERVES FOR CREDIT LOSSES IN AUSTRALIA

Author(s): Teresa Orzeszko
Subject(s): Economy
Published by: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
Keywords: BANK RESERVES FOR CREDIT LOSSES; RESERVES IN BANKS; VALUATION PRINCIPLES

Summary/Abstract: The objective of the hereby article is to present the valuation principles of reserves for credit losses in Australian banking sector. As a result of carried out studies it was observed that mentioned principles: were set by APRA and AASB and issued in the form of standards; constituted an integral component of two documents, i.e. of APS 220 and AASB 139; were in line with BCPs’ and Basel II resolutions, and also in line with standards authorized by IASB; were, basically, the same for all domestic deposit-taking institutions, while institutions of an international status applied principles in force in their native countries; were of dual nature, which means that reserves’ valuation for credit losses is performed separately for accounting and for prudential purposes; offered an extensive freedom for deposit-taking institutions in specifying the level of necessary reserves.

  • Issue Year: 2011
  • Issue No: 2 (07)
  • Page Range: 90-108
  • Page Count: 19
  • Language: Polish
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