This is the value of the reporting party's acceptances as at the relevant date. Acceptances comprise undertakings by the reporting party to pay bills of exchange drawn on customers. These bills of exchange are not held as part of the reporting party's asset portfolio. Acceptances are accounted for and disclosed as a liability with a corresponding contra asset. The contra asset is recognised to reflect the reporting party's claim against each drawer of the bills of exchange. The measurement and classification basis used is to be in accordance with the accounting standards.
The repricing analysis should be completed on the basis of the expected repricing profile of assets and liabilities, rather than the contractual repricing (i.e.. contractual loan repayment rates) or original maturity. The expected repricing profile of assets and liabilities should take into account expected loan prepayment/amortisation rates and deposit portfolio run-off, rather than contractual repricing where these are expected to be materially different. Where the terms and conditions of a banking book item provide for the full break cost of early withdrawals or repayments ('economic cost') to be charged to the customer, and it is the ADI's standard practice to do so, the ADI may use the contractual rather than expected repricing profile for that item provided this practice is applied consistently over time. This is intended to allow entities to produce a more accurate representation of the interest rate risk of the balance sheet, and it results in practices such as the spreading of core deposits over a longer, expected repricing profile and the shortening of asset profiles to account for loan breaks.