asked Her Majesty's Government:

Whether off-balance sheet transactions have been included in group accounts of those banks in which they have purchased ordinary or preference shares; and [HL5785]

Whether the accounts of those banks in which they have purchased ordinary or preference shares include any derivatives; and, if so, what was their value. [HL5786]

All banks must produce their annual report and accounts in accordance with applicable accounting standards in force in the UK. Current accounting standards set out rules governing the disclosure of off-balance sheet transactions, where these are not required to be consolidated into group accounts. Similarly, current standards provide for recognition and classification of transactions involving derivatives. The results of the application of these rules to the off-balance sheet items and derivative transactions engaged in by all banks are recorded in their published financial statements. The financial statements also include the auditor's opinion that on the truth and fairness of the accounts in accordance with the application of the relevant accounting standards.