Financial Sector (Collection of Data) (reporting standard) determination No. 26 of 2006

Reporting standard ARS 321.0 Statement of Financial Position (Offshore Operations)

Financial Sector (Collection of Data) Act 2001

I, Charles Watts Littrell, a delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the Act) and subsection 33(3) of the Acts Interpretation Act 1901:

Under section 15 of the Act, I DECLARE that the reporting standard shall begin to apply to those financial sector entities on the later of 1 July 2006 and the date of registration on the Federal Register of Legislative Instruments.

 

 

Dated 26 June 2006

 

[signed]

 

 

Charles Littrell

Executive General Manager

Policy, Research and Statistics

APRA


Interpretation

In this Determination

APRA means the Australian Prudential Regulation Authority.

 

 

 

 

Schedule  

Reporting standard ARS 321.0 Statement of Financial Position (Offshore Operations) comprises 72 pages commencing on the next page.

 

Statement of Financial Position (Offshore Operations)

This reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001. It requires all locally-incorporated banks and locally-incorporated special service providers to report to APRA, generally on a quarterly basis, in relation to their statement of financial position (offshore operations).

This reporting standard outlines the overall requirements for the provision of relevant information to APRA. It should be read in conjunction with Form ARF 321.0 Statement of Financial Position (Offshore Operations) and the instructions to that form (all of which are attached and form part of this reporting standard).

 

Purpose

  1. Data collected in Form ARF 321.0 Statement of Financial Position (Offshore Operations) (Form ARF 321.0) is used by APRA for the purpose of prudential supervision. It may also be used by the Reserve Bank of Australia and the Australian Bureau of Statistics.

Application

2.             This reporting standard applies to locally-incorporated banks and locally-incorporated special service providers.

Information required

3.             A relevant authorised deposit-taking institution (ADI) must provide APRA with the information required by Form ARF 321.0 for each reporting period.

Forms and method of submission

4.             The information required by this reporting standard must be given to APRA either:

(a)          in electronic form, using one of the electronic submission mechanisms provided by the ‘Direct to APRA’ (also known as ‘D2A’) application; or

(b)          manually completed on paper, which must be faxed or mailed to APRA’s head office.

Note: the Direct to APRA application software and paper forms may be obtained from APRA.

Reporting periods and due dates

5.             Subject to paragraph 6, a relevant ADI must provide the information required by this reporting standard for each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the ADI.

6.             APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular ADI, to require it to provide the information required by this reporting standard more frequently, or less frequently, having regard to:

(a)          the particular circumstances of the ADI;

(b)          the extent to which the information is required for the purposes of the prudential supervision of the ADI; and

(c)          the requirements of the Reserve Bank of Australia or the Australian Bureau of Statistics.

7.             The information required by this reporting standard must be provided to APRA by 20 business days after the end of the reporting period to which it relates.

8.             APRA may grant an ADI an extension of a due date in writing, in which case the new due date for the provision of the information will be the date on the notice of extension.

Quality control

9.             The information provided by an ADI under this reporting standard must be the product of processes and controls that have been reviewed and tested by the external auditor of the ADI. AGS 1008 ‘Audit Implications of Prudential Reporting Requirements for Authorised Deposit-taking Institutions’, issued by the Auditing and Assurance Standards Board provides guidance on the scope and nature of the review and testing required from external auditors. This review and testing must be done on an annual basis or more frequently if necessary to enable the external auditor to form an opinion on the accuracy and reliability of the data.

10.         All information provided by an ADI under this reporting standard must be subject to processes and controls developed by the ADI for the internal review and authorisation of that information. It is the responsibility of the board and senior management of the ADI to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.

Authorisation

11.         If an ADI submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the ADI to digitally sign, authorise and encrypt the relevant data. For this purpose, APRA’s certificate authority will issue ‘digital certificates’, for use with the software, to officers of the ADI who have authority from the ADI to transmit the data to APRA.

12.         If information under this reporting standard is provided in paper form, it must be signed on the front page of the relevant completed form by either:

(a)          the Principal Executive Officer of the ADI; or

(b)          the Chief Financial Officer of the ADI (whatever his or her official title may be).

Minor alterations to forms and instructions

13.         APRA may make minor variations to:

(a)          a form that is part of this reporting standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or

(b)          the instructions to a form, to clarify their application to the form

without changing any substantive requirement in the form or instructions.

14.         If APRA makes such a variation it must notify in writing each ADI that is required to report under this reporting standard.

Transitional

15.         An ADI must report under the old reporting standard in respect of a transitional reporting period. For these purposes:

old reporting standard means the reporting standard revoked in the determination making this reporting standard (being the reporting standard which this reporting standard replaces).

transitional reporting period means a reporting period under the old reporting standard:

(a)           which ended before the date of revocation of the old reporting standard; and

(b)           in relation to which the ADI was required, under the old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.

Interpretation - classifications of ADIs

16.         In this reporting standard:

ADI means an authorised deposit-taking institution within the meaning of the Banking Act 1959.

ADI list means the attached ADI list.

locally-incorporated means incorporated in Australia.

locally-incorporated bank means an ADI whose name appears under the heading ‘Australian-owned Banks’ or ‘Foreign Subsidiary Banks’ in the ADI list.  

locally-incorporated special service provider means an ADI whose name appears under the heading ‘Other ADIs’ in the ADI list (other than Cairns Penny Savings & Loans Limited).

relevant ADI means an ADI covered by paragraph 2 of this reporting standard.

17.         If an ADI is not in the ADI list, then if the ADI assumes or uses the word ‘bank’ in relation to its financial business, and is locally-incorporated, it is taken to be a locally-incorporated bank for the purposes of this reporting standard.

18.         APRA may in writing determine that an ADI is taken to be a locally-incorporated bank or a locally-incorporated special service provider for the purposes of this reporting standard (even if, under paragraph 16 or 17, it comes within a different classification).

Interpretation - other definitions

19.         In this reporting standard:

business days means ordinary business days, exclusive of Saturdays, Sundays and public holidays.

Principal Executive Officer means the principal executive officer of the ADI for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the entity.

reporting period means a reporting period under paragraph 5 or, if applicable, paragraph 6.

Foreign-owned SCCIs

Locally Incorporated SCCIs

These companies are run by industry bodies and provide services (eg payments clearing) to member building societies and credit unions.

One ADI that provides general banking services which does not fall into the other categories.








Reporting Form ARF 321.0

Statement of Financial Position (Offshore Operations)

Instruction Guide

This instruction guide is designed to assist in the completion of the Statement of Financial Position for the Offshore Operations reporting entity.

General directions and notes

This form is to be completed by all locally incorporated banks and Special Service Providers (SSPs).

Foreign authorised deposit-taking institution (ADIs) operating through branches in Australia are not required to complete this form.

Securitisation deconsolidation principle

Except where stated otherwise on this form, reporting entities must treat any securitisation program special purpose vehicles (SPVs) in which the ADI (or a member of its consolidated group) participates in accordance with APRA’s clean sale and separation requirements as non-consolidated independent third parties. As a result, for reporting purposes all assets, liabilities, revenues and expenses of these SPVs must be excluded from the ADI’s reported amounts. Where relevant, report on this form any exposure to or other transaction between the ADI and any such SPV as if such transaction was conducted with an independent third party, regardless of whether the SPV or its assets is consolidated for accounting purposes.

Reporting period

The form is to be completed as at the last day of the stated reporting quarter. Locally incorporated banks and SSPs should submit the completed form to APRA within 20 business days after the end of the relevant reporting quarter.

Unit of measurement

Banks are asked to complete the form in millions of Australian dollars rounded to one decimal place. SSPs are asked to complete the form in whole Australian dollars (no decimal place). 

Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates (AASB 121).

The general requirements of AASB 121 for translation are:

  1. foreign currency monetary items outstanding at the reporting date must be translated at the spot rate at the reporting date;
  2. foreign currency non-monetary items that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction;[1]
  3. foreign currency non-monetary items that are measured at fair value will be translated at the exchange rate at the date when fair value was determined.

Transactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 139 Financial Instruments: Recognition and Measurement (AASB 139).  However, those foreign currency derivatives that are not within the scope of AASB 139 (e.g. some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121.

For APRA purposes equity items must be translated using the foreign currency exchange rate at the date of investment or acquisition. Post acquisition changes in equity are required to be translated on the date of the movement.

As foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.

Exchange differences should be recognised in profit and loss in the period which they arise. For foreign currency derivatives, the exchange differences would be recognised immediately in profit and loss if the hedging instrument is a fair value hedge. For derivatives used in a cash flow hedge, the exchange differences should be recognised directly in equity.

The ineffective portion of the exchange differences in all hedges would be recognised in profit and loss; and

4.             translation of financial reports of foreign operations.

A foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.

Unless otherwise specifically stated, institutions are allowed to take advantage of netting agreements in relation to disclosure of data items in this form. Institutions are to comply with the prerequisite for netting outlined in Australian accounting standards AASB 139, AASB 132 Financial Instruments: Disclosure and Presentation (AASB 132) and AASB 7 Financial Instruments: Disclosures (AASB 7) and any relevant prudential standards.

References to term to maturity in this form are references to residual term to maturity.

Unless otherwise specifically stated, institutions are to comply with Australian accounting standards regarding the measurement of asset, liability and equity items.

Classification schema

While this information is provided as a reference guide for the disclosure of the loans and advances portfolios and deposit portfolios as required in the form), it can be also be used as a general guide for other classifications in the form.

In defining sectors (refer below), the following three broad classifications are used:

Private: the private sector comprises private corporations, households and non-profit institutions serving households; and

Public: the public sector comprises government-controlled corporations, general government units and non-profit institutions controlled by government.

The Level of Government classification is:

An Australian resident is any individual, business or other organisation domiciled in Australia. Australian branches and Australian subsidiaries of foreign businesses are regarded as Australian residents.

A non-resident is any individual, business or other organisation domiciled overseas. Foreign branches and foreign subsidiaries of Australian businesses are regarded as non-residents.

Sector definitions

Households

This comprises individuals, or groups of individuals whose dealings with other sectors are for personal or household purposes.

Exclude:

Community service organisations

Include:

Exclude:

Non-financial corporations

Private trading corporations are those owned and controlled by the private sector whose main activity is producing goods or non-financial services for sale.

Include:

Exclude:

This comprises family trusts and individuals acting as sole proprietors or in partnerships, for commercial or professional purposes. The major businesses to be included in this sub-sector are unincorporated farms, unincorporated retailers, unincorporated professional practices (medical, legal, dental, accounting, etc.), unincorporated businesses of tradesmen such as plumbers, carpenters, etc.

Trading enterprises owned by the Commonwealth are those businesses which are owned and controlled by the Commonwealth Government and which produce goods or non-financial services for sale at market prices.

Include:

All resident trading enterprises owned 50% or more by the Commonwealth Government or controlled by the Commonwealth Government through legislation, decree or regulation (e.g. Australia Post, and Australian Government Solicitor).

Exclude:

State, Territory and local government trading enterprises are those businesses, which are owned and controlled by State, Territory or local governments, which produce goods or non-financial services for sale at market prices.

Include:

All resident trading enterprises, owned 50% or more by a State, Territory or local government or controlled by a State or Territory government through legislation, decree or regulation (e.g. state rail and water authorities, gas and fuel authorities, housing commissions, port authorities, non-privatised power authorities)

Exclude:

Financial corporations

The RBA is a public financial corporation and has responsibility for monetary policy, issuing banknotes, holding Australia’s international reserves and providing banking services to the Commonwealth.

This sub-sector includes APRA.

Banks refers to corporations, in relation to which an authority under subsection 9(3) is in force and which holds a consent under section 66 of the Banking Act 1959 to use the word bank.

Include:

Exclude:

Other ADIs refers to corporations, in relation to which an authority under subsection 9(3) is in force, but which do not hold a consent under section 66 under the Banking Act 1959 to use the word bank.

Registered financial corporations (RFCs) refers to corporations registered under the Financial Sector (Collection of Data) Act 2001 that are classified to Categories D through G, and cash management trusts.

Include:

A list of corporations registered under the Financial Sector (Collection of Data) Act 2001 and their classification are available on request.

Exclude:

Life insurance companies must be registered with APRA. They offer insurance for death or disability and also offer investment and superannuation products.

Include:

Exclude:

The pension funds sub-sector includes all superannuation funds that are regarded as complying funds for the purposes of the Superannuation Industry (Supervision) Act 1993 and other autonomous funds established for the benefit of public sector employees. Superannuation funds with all of their assets invested with insurance offices are included.

Superannuation funds and Approved Deposit Funds (ADFs) are established to provide benefits for their members on retirement, resignation, death or disablement. Superannuation funds and ADFs usually take the legal form of trust funds.

Include:

Exclude:

The other insurance corporations’ sub-sector includes all corporations that provide insurance other than life insurance. Included are general, fire, accident, employer liability, household and consumer credit insurers and health insurance funds. These companies must be registered with APRA. They mainly offer house, car and marine insurance.

Include:

These are corporations established by State and Territory governments to provide finance for government authorities and to manage their surplus funds.

Include

These are corporations and quasi-corporations engaged primarily in activities closely related to financial intermediation, but which do not themselves perform an intermediation role.

Include:

These are financial vehicles that issue short and/or long-term securities (called asset-backed securities) using specifically selected assets (e.g. mortgages, receivables). They provide backing (collateral) for the securities and generate the payment streams necessary to fulfill interest and principal requirements for investors.

Comprise all financial intermediaries other than central bank institutions, depository corporations, insurance corporations, pension funds, CBAs, securitisers and unit trusts.

General government

Commonwealth government departments and agencies principal function is to provide non-market goods and services, principally financed by taxes, to regulate economic activity, maintain law and order and to redistribute income and wealth by means of transfers.

Include:

Exclude:

State, Territory and local general government provides non-market goods and services principally financed by taxes to regulate economic activity, maintain law and order and to redistribute income and wealth by means of transfers and hence provided free of charge or at nominal prices well below the cost of production.

Include:

Exclude:

Rest of the world/non-residents

The rest of the world sector consists of all non-resident units that enter into transactions, or have other economic links, with Australian resident units. The concept of residence is based on the concept of the economic territory of a country rather than legal or political concepts. A non-resident unit is any individual, enterprise or other organisation ordinarily domiciled in a country other than Australia.

Include:

Exclude:

Other definitions

Personal refers to individuals, or groups of individuals whose dealings with other sectors are for personal (i.e. non-business) purposes.

Commercial refers to transactions conducted with Private trading companies, Public trading enterprises, Private unincorporated businesses, and Community service organisations, for use in connection with businesses carried on by them.

1.             Cash and liquid assets

Generally include:

Exclude:

This reporting item should be brought to account at the face value or the gross value of the outstanding balance where appropriate. Interest is taken to profit and loss when earned.

1.1        Notes and coins

Include:

1.2        Deposits at call

Include:

1.3        Gold bullion

Include:

Exclude:

1.4        Due from clearing houses

Include:

1.5        Securities purchased under agreements to resell

Where the transferee of the stock effectively receives a lender’s rate of return (i.e. the underlying risks and rewards of ownership of the underlying stock is not effectively transferred), these transactions are to be accounted for as collateralised borrowing activities (treating stock borrowing as on balance sheet exposures). Securities purchased under agreements to resell, represents the receivable due from counterparties from whom the stock has been borrowed and with whom cash has been lodged.  Under this method of accounting the bank’s physical stock positions recorded on the balance sheet in either Trading Securities or Investment Securities sections is not affected. This treatment is consistent with AASB 139.

1.6        Due from financial institutions

Generally include:

Exclude:

This reporting item should be brought to account at the gross value of the outstanding balance. Interest is taken to profit and loss when earned.

Due from RBA/due from central banks

Include:

Due from banks

Include:

Due from other financial institutions

Include:

1.7        Total cash and liquid assets

Sum all cash and liquid asset reporting items above.

2.             Trading Securities

Trading Securities are defined in accordance with AASB 139, AASB 132 and AASB 7.

Trading securities are recorded at net fair value, which is defined in accordance with AASB 139, AASB 132 and AASB 7.

Interest earned on Trading Securities is reported as interest income in the ADI Statement of Financial Performance and ARF 330.1 Interest Income and Interest Expense (ARF 330.1). Dividends received are viewed as dividend income and accordingly, are to be classified as other operating income in ARF 330.2 Other Operating Income (ARF 330.2).

All gains and losses, realised and unrealised are reported in net trading income in ARF 330.2.

Report short sold positions as a negative asset against the appropriate debt or equity security item.

Include:

Exclude:

“Loans and Advances” should not be affected by the reporting of “Securities lent or sold under repurchase agreements.

Include:

2.1        Australian Commonwealth Government securities

Include:

The following securities should be reported:

2.2        Other Australian Government securities

Include:

The following securities should be reported:

2.3        Foreign government securities

Include:

2.5        Total trading securities

Sum all “Trading securities” reporting items above.

3.             Investment Securities

Investment securities are those securities, which are not Trading Securities, as defined in accordance with AASB 130 Disclosures in the Financial Statements of Banks and Similar Financial Institutions (AASB 130), AASB 132 and AASB 7.

These are generally securities purchased with the intent that they be generally held to maturity or held for a period of time, though not necessarily maturity (i.e. equity securities).

Investment securities are to be recorded in accordance with AASB 139.

Interest earned on trading securities is reported as interest income in ARF 330.1.

Dividends received on equity securities are viewed as dividend income and accordingly, are to be classified as other operating income in ARF 330.2.

All realised gains and losses are reported in ARF 330.2.

Include:

Exclude:

Loans and advances” should not be affected by the reporting of “Securities lent or sold under repurchase agreements.

Include holdings of debt securities issued by controlled entities and associates.

3.1        Commonwealth Government securities

Include:

The following securities should be reported:

3.2        Other Australian Government securities

Include:

The following securities should be reported:

3.3        Foreign government securities

Include:

3.5        Total investment securities

Sum all “investment securities” reporting items above.

4.             Acceptances of customers

4.1        Total acceptances of customers - Net

Acceptances comprise undertakings by an ADI to pay bills of exchange drawn on customers. The ADI expects most acceptances to be presented before being reimbursed by the customers. These bills of exchange are not held as part of the ADI’s asset portfolio. Acceptances are accounted for and disclosed as a liability with a corresponding contra asset. The contra asset is recognised to reflect the ADI’s claim against each drawer of the bills of exchange.

Bills of exchange that have been accepted and held in an ADI’s asset portfolio should be excluded from this item. Include these holdings of own acceptances under either Trading Securities or Investment Securities.

Netting is allowed in accordance with the requirements specified in the Australian accounting standards (i.e. only if there is a legal right to set off and there is an intention to settle on a net basis, or realise the assets and settle the liability simultaneously).

Acceptances generate fee income that is taken to profit and loss when earned.

5.             Loans and advances

Note: Loans and advances are investments of the ADI, which are deemed for this form not be evidenced by the financing/issue of debt securities (e.g. bill financing). This type of financing/investing is to be either recorded in the Trading Securities or Investment Securities.

Generally include:

Exclude:

Loans and advances are recognised at amortised cost, after assessing required provisions.

Loans and advances should be recorded net of unearned revenue; this is mainly with respect to unearned lease receivables.

Netting is permitted in accordance with the requirements of the Australian accounting standards (i.e. were there is a legal right to set off the recognised amounts and there is an intention to settle on a net basis, or realise the assets and settle the liability simultaneously).

Loan loss provisioning

Provisions assessed on an individual facility basis in accordance with the Australian equivalents to International Financial Reporting Standards (AIFRS) are to be treated as specific provisions in the reporting forms for regulatory reporting purposes (APS 220 Credit Quality (APS 220)). Specific provisions also include that portion of provisions assessed on a collective basis that are not eligible for regulatory purposes to be included in General Reserve for Credit Losses as defined by APS.

Note:

Specific provisions and General Reserve for Credit Losses for products and counterparties where indicated in the form are to be reported only if the data is already recorded and allocated on that basis by the institution. Otherwise the specific provision and General Reserve for Credit Losses can be disclosed in aggregate.

Do not include associated deferred tax assets (DTA) in the amounts reported for General Reserve for Credit Losses or specific provisions.  Include associated DTA in 'Other Assets - DTA - General Reserve for Credit Losses’.

5.1        Loans to households

5.1.1.1.(1)     Housing

Including revolving credit or redraw facilities that are exclusively or predominantly for purpose of housing.

Owner occupied – Balance outstanding:

Include:

This reporting item should be reported gross of any specific provisions and General Reserve for Credit Losses.

5.1.1.1.(2)     Housing

Including revolving credit or redraw facilities that are exclusively or predominantly for purpose of housing.

Owner occupied – Specific provisions:

Report the specific provisions for impairment applied to this loan item.

5.1.1.1.(3)     Housing

Including revolving credit or redraw facilities that are exclusively or predominantly for purpose of housing.

Owner occupied – General Reserve for Credit Losses:

Report the General Reserve for Credit Losses applied to this loan item if already recorded/allocated by the institution, otherwise leave blank.

5.1.1.2.(1)     Housing

Including revolving credit or redraw facilities that are exclusively or predominantly for purpose of housing.

Investment – Balance outstanding:

Include:

This reporting item should be reported gross of any specific provisions and General Reserve for Credit Losses.

5.1.1.2.(2)     Housing

Including revolving credit or redraw facilities that are exclusively or predominantly for purpose of housing.

Investment – Specific provision:

Report the specific provisions for impairment applied to this loan item.

5.1.1.2.(3)     Housing

Including revolving credit or redraw facilities that are exclusively or predominantly for purpose of housing.

Investment – General Reserve for Credit Losses:

Report the General Reserve for Credit Losses applied to this loan item if already recorded/allocated by the institution, otherwise leave blank.

5.1.3.(1)        Revolving credit – Balance

Include:

A revolving credit is a loan arrangement in which the borrowing party may repay funds on loan and immediately borrow it again up to an agreed limit.

This reporting item should be reported gross of any specific provisions and General Reserve for Credit Losses.

5.1.3.(2)        Revolving credit – Specific provision

Report the specific provisions for impairment applied to this loan item, if this is recorded or allocated by the institution on this basis.

5.1.3.(3)        Revolving credit – General Reserve for Credit Losses

Report the General Reserve for Credit Losses for this reporting line, if this is recorded or allocated by the institution on this basis.

5.1.4.(1)        Credit card – Balance

Include:

This reporting item should be reported gross of any specific provisions and General Reserve for Credit Losses.

5.1.4.(2)        Credit card – Specific provision

Report the specific provisions for impairment applied to this loan item, if this is recorded or allocated by the institution on this basis.

5.1.4.(3)        Credit card – General Reserve for Credit Losses

Report the General Reserve for Credit Losses for this reporting line, if this is recorded or allocated by the institution on this basis.

5.1.5.(1)        Leasing - Balance

Include:

This reporting item should be reported net of unearned revenue and gross of specific provisions for impairment and General Reserve for Credit Losses.

5.1.5.(2)        Leasing - Specific provision

Report the specific provisions for impairment applied to this loan item, if this recorded or allocated by the institution on this basis.

5.1.5.(3)        Leasing – General Reserve for Credit Losses

Report the General Reserve for Credit Losses for this reporting line, if this recorded or allocated by the institution on this basis.

5.1.6.(1)        Other personal term loans – Balance

Include:

This reporting item should be reported gross of any specific provisions and General Reserve for Credit Losses.

5.1.6.(2)        Other personal term loans – Specific provision

Report the specific provisions for impairment applied to this loan item, if this is recorded or allocated by the institution on this basis.

5.1.6.(3)        Other personal term loans – General Reserve for Credit Losses

Report the General Reserve for Credit Losses for this reporting line, if this is recorded or allocated by the institution on this basis.

5.1.7.(1)        Total loans to households – Balance

Sum the gross value of loans to householders.

This reporting item should be reported gross of any specific provisions and General Reserve for Credit Losses.

Report the specific provisions applying to loans to householders.

Report the General Reserve for Credit Losses for this reporting line.

5.2.(1)           Loans to community service organisations/non-profit institutions serving households

5.2.(1)           Loans to community service organisations/non-profit institutions serving households – Balance

Include:

This reporting item should be reported gross of any specific provisions and General Reserve for Credit Losses.

5.2.(2)           Loans to community service organisations/non-profit institutions serving households – Specific provision

Report the specific provisions for impairment applied to this loan item.

5.2.(3)           Loans to community service organisations/non-profit institutions serving households – General Reserve for Credit Losses

Report the General Reserve for Credit Losses for this reporting line, if this recorded or allocated by the institution on this basis.

5.3        Loans to non-financial corporations

5.3.1.(1)        Loans to private trading corporations – Balance

Include:

5.3.2.(1)        Loans to private unincorporated businesses – Balance

Include:

5.3.3.(1)        Loans to Commonwealth and foreign government non-financial corporations – Balance

Include:

5.3.4.(1)        Loans to State, Territory and local government and foreign regional non-financial corporations – Balance

Include:

Include:

Exclude:

Loans and advances are recognized at amortised cost, after assessing required provisions for impairment.

Include:

This reporting item should be reported gross of any specific provisions.

Include:

This reporting item should be reported gross of any specific provisions.

Include:

This reporting item should be reported gross of any specific provisions.

Include:

Exclude:

This reporting item should be brought to account at the gross value of the outstanding balance. Interest is taken to profit and loss when earned.

5.5.1 Loans to RBA

Include:

This reporting item should be reported gross of any specific provisions.

5.5.2 Loans to foreign central banks

Include:

This reporting item should be reported gross of any specific provisions.

5.5.3  Loans to banks

Include:

This reporting item should be reported gross of any specific provisions.

5.5.4  Loans to other financial institutions

Include:

This reporting item should be reported gross of any specific provisions.

5.5.5 Total loans to financial corporations

Sum the gross value of loans to Australian and offshore financial corporations.

Sum the gross value of loans and advances.

Sum the specific provisions applying to all loans.

Record the General Reserve for Credit Losses applying to all loans.

Note: The total of the above of which breakdown of the loan portfolio must equal the aggregate loan portfolio balance disclosed above.

5.6.1  Total gross loans and advances of which: Margin lending

Lending for the purpose of purchasing equities, where the underlying security is equities.

5.6.2  Total gross loans and advances of which: Loans held for sale

Loans held for sale are loans (e.g. mortgages) acquired and held by the ADI with the intention of resale in the short term (i.e. within 12 months of acquisition). This item is to be carried at the lower of cost or net fair value.

5.6.3  Total gross loans and advances of which: Revolving credit

Include:

Exclude:

A revolving credit is a loan arrangement in which the borrowing party may repay funds on loan and immediately borrow it again up to an agreed limit.

This reporting item should be reported gross of any specific provisions and General Reserve for Credit Losses.

5.6.4  Total gross loans and advances of which: Credit cards

Include:

5.6.5  Total gross loans and advances of which: Housing – Fixed rate

Of the total reported for “housing loans” identify the component that has a fixed interest rate.

5.6.6  Total gross loans and advances of which: Housing – Variable rate

Of the total reported for “housing loans” identify the component that has a variable interest rate.


5.6.7  Total gross loans and advances of which: Term loan – Fixed rate

Include:

Exclude:

5.6.8  Total gross loans and advances of which: Term loan – Variable rate

Include:

5.6.9  Total gross loans and advances of which: Lease financing

Include:

This reporting item should be reported net of unearned revenue and gross of specific provisions for impairment and General Reserve for Credit Losses.

5.6.10    Total gross loans and advances of which: Other loans

Include:

5.7             Less: Deferred fee income

Deferred fee income should be reported in this line item and deducted from total gross loans and advances.

5.8             Net loans and advances (net of Specific provision, General Reserve for Credit Losses and deferred fee income)

Report total loans and advances, net of specific provisions, General Reserve for Credit Losses and deferred fee income.

5.9             Intra-company advances

Report all advances and other assets to other offices within the ADI.

6.             Other investments

6.1        Parent entity

Report the total amount of equity investments in the parent entity. Defined in accordance with AASB 127 and AASB 3.

6.2        Controlled entities

Report the total amount of equity investments in controlled entities (subsidiaries). Defined in accordance with AASB 127 and AASB 3.

6.3        Associates

Report the total amount of equity investments in associates. Defined in accordance with AASB 128.

6.4        Joint ventures

Report the total amount of interests in joint ventures (entities). Defined in accordance with AASB 131 Interests in Joint Ventures.

6.5        Other

Report any Other investments not included above.

6.6        Total other investments

Sum all reporting line items for Other Investments.

The reporting of all fixed assets items should be in accordance with applicable Australian accounting standards. Do not include property acquired or held available for sale. These assets are to be disclosed in “Other Assets” category under line item “Non-current assets and disposal groups classified as held for sale”.

7.1.      Property

Include:

Include:

Where information technology is treated as an intangible asset for accounting purposes, it must be reported as an intangible asset in this regulatory form.

Report other fixed assets items not specifically mentioned above; e.g. leasehold improvements and capital leases.

Report total depreciation/impairment for all fixed assets items here.

Deduct Accumulated depreciation/impairment from the gross values for property, plant and equipment, information technology and other.

8.             Intangible assets

Intangible assets have been divided into “intangible assets with a finite life” and “intangible assets with an infinite life” and “goodwill”.

Classification of assets as intangible assets must be in compliance with the Australian accounting authoritative pronouncements. As a guide ADIs are suggested to follow the disclosure adopted in its annual financial report.

8.1        Intangible assets with a finite life

Include:

8.2        Accumulated amortisation

Include:

8.3        Net Intangible assets with a finite life

Subtract the “Accumulated amortisation” from the “Intangible assets with a finite life”.

8.4        Intangible assets with an infinite life

Include:

8.5        Impairment

Include:

8.6        Net Intangible assets with an infinite life

Subtract the “Impairment” from the “Intangible assets with an infinite life”.

8.7        Goodwill

Goodwill (determined in accordance with AASB 3) represents the excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities.

8.8        Impairment

Include:

8.9        Net goodwill

Include:

8.10   Net intangible assets

Deduct “Accumulated amortisation” and “Impairment” from the gross values for “Intangible Assets with a finite life”, “Intangible assets with an infinite life” and “Goodwill”.

9.             Other assets

9.1        Interest receivable

Include:

9.2        Derivative financial instruments

Include:

9.3        Amounts receivable from clients - Outstanding security settlements

For those institutions that have broking activity with clients who are other than financial institutions, record the amount due from clients in relation to security settlement transactions. Do not include amounts receivable from financial institutions or clearing houses in relation to security settlements, as these are to be recorded in a separate asset heading “Due from Financial Institutions” and “Due from Clearing Houses”.

9.4        DTA

Tax assets are defined in accordance with Income Taxes (AASB 112).

Recognition of DTA are to be made in accordance with AASB 112.

The amounts calculated and recognised for DTA must be noted separately in the following categories:

9.4.1 DTA – From tax losses

Report all DTA arising out of tax losses in accordance with AASB 112.

9.4.2 DTA – From specific provision and General Reserve for Credit Losses

Report all DTA associated with the provisioning for asset impairment in accordance with AASB 112.

9.4.3 DTA - Other

Report all DTA other than from tax losses, specific provision and general reserve for credit losses.

9.5        Loan/credit card servicing rights

Report the carrying value of purchased loan (e.g. mortgages) and credit card relationships when the reporting entity purchases the right to receive existing loan payments and credit card receivables in consideration for providing lending and credit card services to those customers. Also report any purchased loan/credit card servicing rights arising in the acquisition of an entire financial institution. The carrying value consists of the cost of the servicing right less accumulated amortisation for the right.

9.6        Defined benefit assets

Include:

9.7        Non-current assets and disposal groups classified as held for sale

Include:

9.8        Items in suspense

Report suspense or unreconciled/unidentified transactions/balances here. A list of examples is not provided as these may vary between institutions. It is recommended that the institutions internal procedures be adopted regarding the recording and reporting of these types of balances.

9.9        Other

Include all other assets not separately identified above.

Include

Exclude:

9.10   Total other assets

Sum all the reporting items listed under “Other assets”.

10.1.1    Total assets of which deposits, debt securities and loans to controlled entities and associates – Subordinated

Report the total amount of investments of a subordinated nature in controlled entities or associates of the reporting entity. Investments in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

A subordinated debt is a debt security that ranks below other debts should a company be wound up. This includes all debt securities both short and long term.

A subordinated loan is a loan that ranks below other debts should a company be wound up.

10.1.2    Total assets of which deposits, debt securities and loans to controlled entities and associates – Secured

Report the total amount of investments of a secured nature in controlled entities or associates of the reporting entity. Investments in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

A secured debt is a debt security that ranks above other debts should a company be wound up. This includes all debt securities both short and long term.

A secured loan is a loan that ranks above other debts should a company be wound up.

10.1.3    Total assets of which deposits, debt securities and loans to controlled entities and associates – Other

Report the total amount of investments other than subordinated or secured in nature, in controlled entities or associates of the reporting entity. Investments in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

10.2.1    Total assets of which deposits, debt securities and loans to the parent entity – Subordinated

Report the total amount of investments of a subordinated nature in the parent entity of the reporting entity. Investments in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

A subordinated debt is a debt security that ranks below other debts should a company be wound up. This includes all debt securities both short and long term.

A subordinated loan is a loan that ranks below other debts should a company be wound up.

10.2.2    Total assets of which deposits, debt securities and loans to the parent entity – Secured

Report the total amount of investments of a secured nature in the parent entity of the reporting entity. Investments in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

A secured debt is a debt security that ranks above other debts should a company be wound up. This includes all debt securities both short and long term.

A secured loan is a loan that ranks above other debts should a company be wound up.


10.2.3    Total assets of which deposits, debt securities and loans to the parent entity – Other

Report the total amount of investments other than subordinated or secured in nature, in the parent entity of the reporting entity. Investments in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

Include:

This reporting item should be brought to account at the gross value of the outstanding balance. Interest is taken to profit and loss when earned.

Due to RBA/due to central banks

Include:

Due to banks

Include:

Due to other financial institutions

Include:

Other financial institutions refer to financial institutions other than central banks and banks.

Acceptances comprise undertakings by an ADI to pay bills of exchange drawn on customers. The ADI expects most acceptances to be presented before being reimbursed by the customers. These bills of exchange are not held as part of the ADI’s asset portfolio. Acceptances are accounted for and disclosed as a liability with a corresponding contra asset. The contra asset is recognised to reflect the ADI’s claim against each drawer of the bills of exchange.

Bills of exchange that have been accepted and held in an ADI’s asset portfolio should be excluded from this item. Include these holdings of own acceptances under either Trading Securities or Investment Securities.

Netting is allowed in accordance with the requirements specified in the Australian accounting standards (i.e. only if there is a legal right to set off and there is an intention to settle on a net basis, or realise the assets and settle the liability simultaneously).

Acceptances generate fee income that is taken to profit and loss when earned.

4.1        Call/on demand deposits: Households/retail

 

Report call or on demand deposits received from Australian and offshore householders. Household deposits are otherwise referred to as retail deposits.

Include:

Call/on demand deposits: Other

Report call or on demand deposits received from other than Australian and offshore householders.

Include:

4.2        Term deposits: Households/retail

Report term deposits received from Australian and offshore householders. Household deposits are otherwise referred to as retail deposits.

Term deposits refer to an account in which money has been placed for a fixed period of time for a stated interest rate.

Term deposits: Other

Report term deposits received from other than Australian and offshore householders.

Term deposits refer to an account in which money has been placed for a fixed period of time for a stated interest rate.

4.3        Deposits: Certificates of deposit

Certificates of deposit are negotiable bearer debt securities. They are issued at a discount to the face value and do not require endorsement when sold.

4.4        Deposits: Other

Report deposits not identified above.

4.5        Total deposit

Sum all the deposit accounts above.

Include:

Exclude:

Where the transferee of the stock effectively receives a lender’s rate of return (i.e. the underlying risks and rewards of ownership of the underlying stock is not effectively transferred), these transactions are to be accounted for as collateralised lending activities (treating stock lending as on balance sheet exposures). Securities sold under agreements to repurchase, represents the payable due to counterparties with whom the stock has been lent and from whom cash has been lodged. Under this method of accounting the bank’s physical stock positions recorded on the balance sheet in either Trading Securities or Investment Securities sections is not affected. This treatment is consistent with AASB 139.

Report all borrowings by the reporting entity in the form of commercial paper or promissory notes. Commercial paper or promissory notes are short-term debt securities usually issued with an original term to maturity of less than 180 days.

Include all commercial paper or promissory notes issued with a residual term to maturity of 12 months or less. Commercial paper or promissory notes with a residual maturity greater than 12 months should be reported as “long term debt”.

Report all borrowings by the reporting entity in the form of short term debt securities, other than certificates of deposits and promissory notes/commercial paper (identified above).

Include:

Report all borrowings by the reporting entity in the form of variable interest rate short term loans.

A loan is considered to be short term if its residual term to maturity is of 12 months or less.

Report all borrowings by the reporting entity in the form of fixed interest rate short term loans.

A loan is considered to be short term if its residual term to maturity is of 12 months or less.

Sum the component parts listed under “Other Borrowings”.

6.             Income tax liability

Recognition of current and deferred tax liabilities are to be made in accordance with AASB 112.

6.3        Total income tax liability

Sum the income tax liability items relating to Australian business operations.

7.             Provisions

7.1        Dividends

A provision for dividends is the allowance that the reporting entity has made in terms of the obligation for declared dividends.

7.2        Employee entitlements

This includes provisions for long service leave, annual leave, staff housing loan benefits, health fund subsidy and other employee entitlements. This should be reported in accordance with the requirements of AASB 119.

7.3        Non-lending losses

Include:

7.4        Restructuring costs

Report all provisions raised for the restructuring of an organization.

Include:

7.5        Other provisions

Report all other provisions not identified above.

Include:

7.6        Total provisions

Sum all the “provisions” reporting items.

8.             Bonds, notes and long-term borrowings

Bonds, notes and long term borrowings have a residual term to maturity of more than one year. This includes loans and debt securities.


8.1        Debt securities

Report debt securities that have been issued and have a residual term to maturity of more than one year. Measurement is to be consistent with Australian accounting standards.

As a guide include:

As a guide exclude:

8.2 - 8.3     Loans

Report the face value of all loans and borrowings that have a residual term to maturity of more than one year.

Include:

Exclude:

8.2        Loans – Variable rate

Report the face value of all variable interest rate loans and borrowings that have a residual term to maturity of more than one year.

8.3        Long term loans – Fixed rate

Report the face value of all fixed interest rate loans and borrowings that have a residual term to maturity of more than one year.

8.4        Total bonds, notes and long term borrowings

Sum the total face value of all "Bonds, notes and long term borrowings" issued.

9.             Intra-company borrowings

Report borrowings from other offices within the ADI (including the Australian head office).

10.        Creditors and other liabilities

10.1 - 10.2       Defined benefit liabilities

Include:

Distinctions between current and non-current defined benefit liabilities are to be made in accordance with AASB 101 Presentation of Financial Statements.

10.3   Interest payable

Include;

10.4   Unearned interest

Include:

10.5   Derivative financial instruments

Include:

10.6   Amounts payable to client - Outstanding security settlements

For those institutions that have broking activity with clients who are other than financial institutions, record the amount due to clients in relation to security settlement transactions. Do not include amounts payable to financial institutions or clearing houses in relation to security settlements, as these are to be recorded in a separate liability heading “Due to Financial Institutions” and “Due to Clearing Houses”.

10.7   Items in suspense

Report suspense or unreconciled/unidentified transactions/balances here that are in a liability position. A list of examples is not provided as these may vary between institutions. It is recommended that the institution’s internal procedures be adopted regarding the recording and reporting of these types of balances.

10.8   Liabilities included in disposal groups classified as held for sale

Include:

10.9   Share capital repayable on demand

Applicable to Credit Unions and Building Societies, this includes members’ shares in co-operatives classified as liabilities consistent with AASB 132 and AASB 7.

10.10   Other

Include:

Exclude:

10.11   Total creditors and other liabilities

Sum the reporting items listed under “Creditors and other liabilities”.

11.        Loan capital and hybrid securities

Report the face value of all loan capital and hybrid securities that have been issued in Australia and have a residual term to maturity of more than one year.

Classification is to be consistent with AASB 132 and AASB 7.

As a guide include:

11.1   Loan capital

As a guide include:

11.2   Hybrid securities

As a guide include:

11.3   Total loan capital and hybrid securities

Total all loan capital and hybrid securities items listed above.

12.        Total liabilities

Sum total liabilities.

12.1.1    Total liabilities of which deposits, debt securities and loans from controlled entities and associates – Subordinated

Report the total amount of liabilities of a subordinated nature from controlled entities or associates of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

A subordinated debt is a debt security that ranks below other debts should a company be wound up. This includes all debt securities both short and long term.

A subordinated loan is a loan that ranks below other debts should a company be wound up.

12.1.2    Total liabilities of which deposits, debt securities and loans from controlled entities and associates – Secured

Report the total amount of liabilities of a secured nature from controlled entities or associates of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

A secured debt is a debt security that ranks above other debts should a company be wound up. This includes all debt securities both short and long term.

A secured loan is a loan that ranks above other debts should a company be wound up.

12.1.3    Total liabilities of which deposits, debt securities and loans from controlled entities and associates – Other

Report the total amount of liabilities other than subordinated or secured in nature, from controlled entities or associates of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

12.2.1    Total liabilities of which deposits, debt securities and loans from the parent entity – Subordinated

Report the total amount of liabilities of a subordinated nature from the parent entity of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

A subordinated debt is a debt security that ranks below other debts should a company be wound up. This includes all debt securities both short and long term.

A subordinated loan is a loan that ranks below other debts should a company be wound up.

12.2.2    Total liabilities of which deposits, debt securities and loans from the parent entity – Secured

Report the total amount of liabilities of a secured nature from the parent entity of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

A secured debt is a debt security that ranks above other debts should a company be wound up. This includes all debt securities both short and long term.

A secured loan is a loan that ranks above other debts should a company be wound up.

12.2.3    Total liabilities of which deposits, debt securities and loans from the parent entity – Other

Report the total amount of liabilities other than subordinated or secured in nature, from the parent entity of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

12.3   Total liabilities of which other secured deposits, debt securities and loans

Report the total amount of liabilities of a secured nature from parties other than the parent, controlled or associated entities of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

A secured debt is a debt security that ranks above other debts should a company be wound up. This includes all debt securities both short and long term.

A secured loan is a loan that ranks above other debts should a company be wound up.

13.        Net assets

Calculated as total assets less total liabilities.

Section C: Shareholders’ equity

1.             Share capital

1.1        Ordinary shares

Include:

1.2        Preference shares

Preference shares have a priority over dividend payments and to the assets of the reporting company.

1.3        Other

Include:

2.             Reserves

2.1        General reserves

This is derived from revenue profits and is mostly available for dividend payment.

Exclude:

2.2        Capital profits reserve

Capital profits reserve represents the realised value of revaluations associated with an asset or class of assets that have been disposed of. These assets have been subject to the fair value basis of measurement and revaluations accounted for in accordance with accounting standard AASB 116. Due to the disposal of these assets, the balance of the asset revaluation reserve (ARR) associated with these assets has been transferred to a capital profits reserve.

Include:

Include:

Include:

Include:

Include:

Include:

Asset revaluation reserve relating to the revaluation of other assets.

Sum the reporting items listed under “ARR”.

2.4        Foreign currency translation reserve

Include:

2.5.1.       Available for sale reserve – Marketable securities

Include:

2.5.2.       Available for sale reserve – Other

Include:

2.6        Cash flow hedge reserve

Include:

2.7        Share based payments reserve

Include:

2.8        Other reserves

Include:

2.9        Total reserves

Sum the reporting items listed under “Reserves”.

3.             Retained profits or accumulated losses at the end of the period

4.             Total shareholders’ equity

Sum the reporting items: “Shareholders’ equity”.

[1] Examples of non-monetary items include amounts prepaid for goods and services (e.g. prepaid rent); goodwill; intangible assets; physical assets; and provisions that are to be settled by the delivery of a non-monetary asset.