Banking · Disclosure Norms and Accounting Standards

Evaluate the following statements regarding the final accounts of banking companies: Statement 1: The preparation of final accounts for a banking company requires the mandatory disclosure of contingent liabilities in Schedule 12, which includes guarantees given on behalf of constituents. Statement 2: The Profit and Loss Account of a bank must show the 'Operating Profit' separately, which is calculated before provisions and contingencies. Statement 3: Banks are allowed to offset the debit balance in the Inter-office Adjustment account against the credit balance in the Investment Reserve Account. Statement 4: If a bank has provided an unsecured loan to one of its own directors, this amount does not require any separate disclosures or mentions in the reports. Which of the options below is correct?