Memorandum items - balance sheet (ETF 71)

A1A.179.

Memorandum items - balance sheet (ETF 71) are recorded in GFS to provide additional information about items related to (but not included on) the GFS balance sheet. Memorandum items in GFS differ to those of commercial accounting in that they are compulsory rather than optional as in commercial accounting. This category is further classified into:

• implicit transfers (ETF 711);
• liabilities in arrears and related charges (ETF 712); and
• non-performing loans (ETF 713).

A1A.180.

Implicit transfers (ETF 711) consists of the implied transfers arising through concessional lending arrangements, and through other circumstances. This category is further classified into:

• implicit transfers receivable from concessional loans (ETF 7111); and
• implicit transfers payable due to concessional loans (ETF 7112).

A1A.181.

Implicit transfers receivable from concessional loans (ETF 7111) consists of the benefits receivable by borrowers of loans with concessional interest rates. The benefit receivable is equal to the difference between the actual interest payable and the amounts that would be payable if market-equivalent interest prevailed.

A1A.182.

Implicit transfers payable due to concessional loans (ETF 7112) consists of the benefits transferred to borrowers of loans with concessional interest rates. The benefit is equal to the difference between the actual interest payable and the amounts that would be payable if market-equivalent interest prevailed.

A1A.183.

Liabilities in arrears and related charges (ETF 712) consists of arrears on financial instruments, which are amounts that are both unpaid and past the due date for payment, and additional charges relating to arrears. This category is further classified into:

• total arrears (ETF 7121); and
• interest on arrears (ETF 7122).

A1A.184.

Total arrears (ETF 7121) consists of amounts due on financial instruments that are both unpaid and past the due date for payment.

A1A.185.

Interest on arrears (ETF 7122) consists of interest accrued on liabilities in arrears, both principal and interest arrears.

Includes:    Additional charges relating to arrears such as penalties.

A1A.186.

Non-performing loans (ETF 713) consists of loan assets for which payments of principal and interest are past due by three months (90 days) or more; interest payments equal to three months (90 days) interest or more have been capitalised (reinvested to the principal amount) or payment has been delayed by agreement; or evidence exists to reclassify a loan as non-performing even in the absence of a 90 day past due payment, such as when the debtor files for bankruptcy.