Which amount is not usually relevant for custodial credit risk evaluation?

When evaluating custodial credit risk, the focus is primarily on the amounts that reflect the actual financial position and exposure to risk related to cash and cash equivalents held in custodial accounts. The book balance represents the amount recorded in the financial statements, which helps in analyzing the organization’s financial health and its actual cash availability. The bank balance also plays a critical role, as it indicates the amount available in the bank accounts and is essential for assessing the risk of loss due to a bank’s insolvency or failure.

In contrast, cash flow, while significant for overall financial analysis, is not as directly relevant when assessing custodial credit risk. Cash flow provides insights into the inflow and outflow of cash over a period, but does not directly indicate the amounts currently held in custodial accounts or the exposure to potential losses related to those balances. Therefore, cash flow is the amount that typically does not contribute to a precise evaluation of custodial credit risk.