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Financial Assets and Liabilities Disclosure

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Practice Advice on Public Financial Management

Financial Assets and Liabilities Disclosure (OECD)

Summary Advice: The OECD advises that government budgets should include a full disclosure of all financial liabilities and financial assets.

Main Points: The OECD defines several best practices that describe how governments should disclose financial liabilities and assets in budgets and other documents. Among them are:

  • All financial liabilities and financial assets should be disclosed in the budget as well as in the mid-year report, and the year-end report. Monthly borrowing activity should be disclosed in monthly reports, or related documents.
  • Borrowings should be classified by the currency denomination of the debt, the maturity profile of the debt, whether the debt carries a fixed or variable rate of interest, and whether it is callable.
  • Financial assets should be classified by major type, including cash, marketable securities, investments in enterprises and loans advanced to other entities. Investments in enterprises should be listed individually. Loans advanced to other entities should be listed by major category reflecting their nature; historical information on defaults for each category should be disclosed where available. Financial assets should be valued at market value.
  • Debt management instruments, such as forward contracts and swaps, should be disclosed.
  • In the budget, a sensitivity analysis should be made showing what impact changes in interest rates and foreign exchange rates would have on financing costs.

Source: OECD (2002). Best Practices for Budget Transparency at (accessed 24 September, 2012).

Page Created By: Ben Eisen on 15 September 2012. Updated by Ian Clark on 2 January 2013. The content presented on this page is drawn directly from the source(s) cited above, and consists of direct quotations or close paraphrases. This material does not necessarily reflect the official view of the publishing organization.


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