Format of Financial Reporting
1. The auditor's report on the accounts must state whether, in his opinion:
a) The business has maintained proper accounting records;
b) The accounts have been prepared in accordance with the International Financial Accounting Standards (IFRS) and with requirements below;
c) The financial statements present, truly and fairly, the financial position of the business as at 31st December, xxxx; and
d) The business has complied with the Rules within the Money Changers Modules and with the terms and conditions of its license; in specific in respect of maintaining net assets, valid bank guarantee and separate commercial registration.
2. The accounts should be drawn up in accordance with the following breakdown:
1. Cash in hand
2. Balances with banks payable within 7 days
3. Other balances with banks
4. Drafts receivable
5. Due from travellers' cheque companies
7. Other precious metals
8. Due from money changers
9. Fixed Assets
10. Other Assets
1. Drafts payable
2. Due to travellers' cheque companies
3. Due to money changers
4. Borrowings from banks
5. Other liabilities
C- Shareholders' Equity:
1. Paid-up Capital
2. Statutory Reserve
3. General Reserve
4. Retained Earnings/Loss
D- Off-Balance Sheet Items:
1. Unsettled foreign exchange contracts
2. Unsettled dealing in gold and other precious metals
E- Income Statement:
1. From dealing in foreign currencies
2. From selling and buying drafts
3. From selling and cashing travellers' cheques
4. From dealing in gold and precious metals
5. Interest income
6. Other income
1. Staff expenses
2. Office rent
3. Interest expense
6. General expenses
7. Other expenses
3. Any additional significant items in the accounts should be added in both the form and the notes to the accounts.
4. Additionally, the following guidelines should be observed:
(a) Item A1. A2 and A3 — a breakdown of each item into assets denominated in Bahraini Dinars and foreign currencies should be provided in the notes.
(b) A4 and A5 — these are drafts/travellers' cheques purchased from customers for which the value will be received after the balance sheet date.
(c) A10 — If the amount is equal to or more than 10% of total assets, a breakdown should be disclosed in the note. In any events, loans to employees should be stated in a separate note.
(d) B1 and B2 — these are the drafts/traveller's cheques sold out to customers for which the value will be given after the balance sheet date.
(e) B4 — a breakdown of the borrowings should be given in the note together with the types of collateral provided against such borrowings.
(f) B5 — if the amount is equal to or more than 10% of total liabilities, a breakdown should be disclosed in the note.
(g) E6 — if the amount is equal to or more than 10% of total income a breakdown should be disclosed in the note.
(h) F1 — total number of staff employed should be disclosed with a breakdown of Bahraini and non-Bahraini together with their respective costs.
(i) F7 — if the amount is equal to or more than 10% of total expenses a breakdown should be disclosed in the note.
Amended: April 2014