Credit Union Central of British Columbia is the primary financial facility and trade association for the independent credit unions that serve the province. Comparative consolidated balance sheets from its 2009 annual report are presented in Exhibit 9-7.
In Exhibit 9-7
CONSOLIDATED BALANCE SHEETS | DECEMBER 31

Required:
a. Notice that Credit Union Central of British Columbia has an item called "loans" listed among its assets. Usually, accounts called "loans" are liabilities. Explain the nature of this item and why it is in the assets section of the balance sheet.
b. Notice that there is an item called "deposits" listed among the liabilities. Explain how a liability arises related to deposits.
c. Like many companies in the financial services industry, Credit Union Central of British Columbia does not distinguish between current and non-current liabilities on its balance sheets. Why do you think this is?

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Thousands of dollars) Note 2009 2008 2007 Assets Securities Amounts on deposit with regulated financial institutions Loans Capital assets Other (8) 202,591 S 228,378 28,529 (9) 8,254,183 5,299.5953,745349 211,058 (11) 2,165,958 2,425,947 1,482,978 13,834 180,434 S 11.055,676 S 8,557,784 S 5,662,182 (10) 54,753 126,471 (12) (13) 17,871 360,320 15.128 462.265 Liabilities Notes Deposits Obligations related to securities sold under repurchase agreements Other (15) 465,289 526,225 $ 968,774 (16) 8,879,977 6938,186 4,223,377 (17) (18) (19) 748,654 209,826 10,303,746 200,577 193,333 14,763 8,072.507 50,678 150.447 5,342,598 49,671 Subordinated debt Members' equity Share capital Shares to be issued as result of merger Contributed surplus Retained earnings Accumulated other comprehensive income 162,580 162,580 13,354 87,901 262,056 38,816 551.353 87,901 188,060 167,148 (3944) (10 589) 34,599 269,913 $ 11,055,676 $ 8,557,784 5,662,182