Financial Sector (Collection of Data) (reporting standard) determination No. 26 of 2019

Reporting Standard ARS 322.0 Statement of Financial Position (Consolidated)

Financial Sector (Collection of Data) Act 2001

I, Alison Bliss, 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:

(a)   REVOKE Financial Sector (Collection of Data) (reporting standard) determination No. 22 of 2018, including Reporting Standard ARS 322.0 Statement of Financial Position (Consolidated) made under that Determination; and

(b)   DETERMINE Reporting Standard ARS 322.0 Statement of Financial Position (Consolidated), in the form set out in the Schedule, which applies to the financial sector entities to the extent provided in paragraph 3 of the reporting standard.

Under section 15 of the Act, I DECLARE that the reporting standard shall begin to apply to those financial sector entities, and the revoked reporting standard shall cease to apply, on 1 July 2019.

This instrument commences on 1 July 2019.

Dated: 13 June 2019

[Signed]

Alison Bliss

General Manager

Data Analytics & Insights Division

Interpretation

In this Determination:

APRA means the Australian Prudential Regulation Authority.

financial sector entity has the meaning given by section 5 of the Act.

Schedule

Reporting Standard ARS 322.0 Statement of Financial Position (Consolidated) comprises the document commencing on the following page.

Reporting Standard ARS 322.0

Statement of Financial Position (Consolidated) 

Authority

1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.

Purpose

2.             Information collected by Reporting Form ARF 322.0 Statement of Financial Position (Consolidated) (ARF 322.0) is used by APRA for the purpose of prudential supervision. It may also be used by the Reserve Bank of Australia (RBA) and the Australian Bureau of Statistics (ABS).

Application and commencement

3.             This Reporting Standard applies to an authorised deposit-taking institution (ADI) that is a highest parent entity in relation to a consolidated ADI group. This Reporting Standard does not apply to a branch of a foreign bank.

4.             This Reporting Standard commences on 1 July 2019.

Information required

5.             An ADI to which this Reporting Standard applies must provide APRA with the information required by ARF 322.0 for each reporting period.

Method of submission

6.             The information required by this Reporting Standard must be given to APRA in electronic format, using the ‘Direct to APRA’ application or by a method (i.e. a web-based solution) notified by APRA, in writing, prior to submission.

Note: the Direct to APRA application software (also known as D2A) may be obtained from APRA.

Reporting periods and due dates

7.             Subject to paragraph 9, the information required by this Reporting Standard must be provided in respect of each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the ADI.

8.             The information required by this Reporting Standard must be provided to APRA within 28 calendar days after the end of the reporting period to which the information relates.

9.             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 prudential supervision of the ADI; and

(c)          the requirements of the RBA and the ABS.

10.         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.

Note: For the avoidance of doubt, if the due date for a particular reporting period falls on a day other than a usual business day, an ADI is nonetheless required to submit the information required no later than the due date.

Quality control

11.         All information provided by an ADI under this Reporting Standard must be the product of systems, processes and controls that have been reviewed and tested by the external auditor of the ADI as set out in Prudential Standard APS 310 Audit and Related Matters. Relevant standards and guidance statements issued by the Auditing and Assurance Standards Board provide information 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 information provided by an ADI under this Reporting Standard.

12.         All information provided by an ADI under this Reporting Standard must be subject to systems, processes and controls developed by the ADI for the internal review and authorisation of that information. These systems, processes and controls are to assure the completeness and reliability of the information provided.

Authorisation

13.         When an officer or agent of an ADI submits information under this Reporting Standard using the D2A application, or other method notified by APRA, it will be necessary for the officer or agent to digitally sign the relevant information using a digital certificate or other digital identity credential acceptable to APRA.

Minor alterations to forms and instructions

14.         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.

15.         If APRA makes such a variation, it must notify in writing each ADI that is required to report under this Reporting Standard.

Transition

16.         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 by the determination that makes this Reporting Standard (being the Reporting Standard that this Reporting Standard replaces), as in force immediately before the commencement of this Reporting Standard.

transitional reporting period means a reporting period under the old Reporting Standard:

(a)          that ended on or before 31 December 2018; 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.

Note: For the avoidance of doubt, if an ADI was required to report under an old Reporting Standard, and the reporting documents were due before the date of revocation of the old Reporting Standard, the ADI is still required to provide any overdue reporting documents in accordance with the old Reporting Standard.

Interpretation

17.         In this Reporting Standard:

AASB has the meaning in section 9 of the Corporations Act 2001.

AASB 127 means Australian accounting standard AASB 127 Separate Financial Statements made by the Australian Accounting Standards Board.

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

APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998.

branch of a foreign bank means a ‘foreign ADI’ as defined in section 5 of the Banking Act 1959.

building society means a locally incorporated ADI that assumes or uses the expression ‘building society’ in relation to its banking business.

consolidated ADI group means a group comprising:

(a)          an ADI that is a highest parent entity; and

(b)          each subsidiary under the control (within the meaning of AASB 127) of that ADI, whether the subsidiary is locally-incorporated or not.

credit union means a locally incorporated ADI that assumes or uses the expression ‘credit union’ in relation to its banking business and includes Cairns Penny Savings & Loans Limited.

due date means the relevant due date under paragraph 8 or, if applicable, the date on a notice of extension given under paragraph 10.

foreign ADI has the meaning in section 5 of the Banking Act 1959.

highest parent entity means an ADI that satisfies all of the following conditions:

(a)          it is locally-incorporated;

(b)          it has at least one subsidiary under its control (within the meaning of AASB 127); and

(c)          it is not itself a subsidiary (within the meaning of AASB 127) of an ADI that is locally-incorporated.

locally incorporated means incorporated in Australia or in a State or Territory of Australia, by or under a Commonwealth, State or territory law.

reporting period means a period mentioned in paragraph 7 or, if applicable, the date on a notice given under paragraph 9.

stake means a stake determined under the Financial Sector (Shareholdings) Act 1998, as if the only associates that were taken into account under paragraph (b) of subclause 10(1) of the Schedule to that Act were those set out in paragraphs (h), (j) and (l) of subclause 4(1).

18.         Unless the contrary intention appears, any reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force or existing from time to time.

19.         Where this Reporting Standard provides for APRA to exercise a power or discretion, this power or discretion is to be exercised in writing.

Reporting Form ARF 322.0

Statement of Financial Position (Consolidated)

Instruction Guide

General directions and notes

Other definitions

In these Instructions:

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

Commercial: 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.

‘Parent entity’, ‘controlled entity’ (subsidiary), ‘associated entity’: these terms are defined in accordance with AASB 127, AASB 3 and AASB 128 Investments in Associates and Joint Ventures (AASB 128).

‘Related parties’: related parties of the reporting entity include the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity.

Reporting entity

This is to be completed by all authorised deposit-taking institutions (ADIs) on a consolidated group basis (where applicable).

The basis of consolidation required in this form is in accordance with the accounting consolidated group. The accounting consolidated group is to be determined in accordance with the requirements of the Australian accounting standards, notably AASB 127 Separate Financial Statements (AASB 127) and AASB 3 Business Combinations (AASB 3).

ADIs that do not have any controlled entities are not required to submit forms for this reporting entity.

Branches of foreign banks are not required to complete this form.

Consolidated ADI group

This refers to the global operations of the ADI and all its controlled entities (where relevant), consolidated in accordance with Australian accounting standards (AASB 127 and AASB 3).

The terms ‘controlled entity’ and ‘parent entity’ are defined in accordance with AASB 127 and AASB 3.

Exclude from the accounting consolidated group special purpose vehicles (SPVs) whose assets have satisfied the clean sale requirements set out in Prudential Standard APS 120 Securitisation (APS 120) (refer to Securitisation Deconsolidation Principle below).

Securitisation deconsolidation principle

1. Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that meets APRA’s operational requirements for regulatory capital relief under Prudential Standard APS 120 Securitisation (APS 120):

(a)          special purpose vehicles (SPVs) holding securitised assets may be treated as non-consolidated independent third parties for regulatory reporting purposes, irrespective of whether the SPVs (or their assets) are consolidated for accounting purposes; and

(b)          the assets, liabilities, revenues and expenses of the relevant SPVs may be excluded from the ADI’s reported amounts in APRA’s regulatory reporting returns.

2.             Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that does not meet APRA’s operational requirements for regulatory capital relief under APS 120, or the ADI undertakes a funding-only securitisation or synthetic securitisation, such assets are to be reported as on-balance sheet in APRA’s regulatory reporting returns.

Reporting period and timeframe for lodgement

The form is to be completed as at the last day of each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the ADI. ADIs must submit the completed form to APRA within 28 calendar days after the end of the relevant reporting quarter or by the date specified in a notice of extension granted by APRA.

Unit of measurement

ADIs 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;[1]
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;[2]
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 9 Financial Instruments (AASB 9), AASB 7 Financial Instruments: Disclosures (AASB 7) and AASB 132 Financial Instruments: Presentation. However, those foreign currency derivatives that are not within the scope of AASB 9 (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.             in relation to financial reports of foreign operations:

A foreign operation is defined in AASB 121 to mean 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.

• Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.
• Translation of financial reports should otherwise follow the requirements in AASB 121.

Netting

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 7 and AASB 132 and any relevant prudential standards.

Term to maturity

Any references to ‘term to maturity’ in Reporting Form ARF 322.0 Statement of Financial Position (Consolidated) (ARF 322.0) refer to residual term to maturity.

Basis of preparation

The nature of the disclosure and format of this form may not be strictly consistent with the annual financial statements prepared by the institution. Notwithstanding this, in completing this form (unless otherwise specifically stated for individual items of assets, liabilities or equity), institutions are requested to follow the basis that is used for the preparation of its annual financial statements in accordance with the Australian Accounting Standards, specifically in regard to the:

• interpretation/definition of specific asset, liability and equity items;
• appropriate measurement basis for asset, liability and equity items; and
• netting of financial assets and financial liabilities.

Classification schema

This information is provided as a reference guide for the disclosure of the loans and advances portfolios and deposit portfolios as required in ARF 322.0, it can be also be used as a general guide for other classifications in the form. 

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

1. Private/public classification

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.

2. Level of Government classification

The level of Government classification is:

• National/Central;
• State/Territory; and
• Local.

3. Resident/non-resident classification

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, resident in Australia whose dealings with other sectors are for personal or household purposes.

Exclude:

• sole proprietors, partnerships, family trusts, and any other unincorporated enterprises owned by households. Show these as private unincorporated businesses.

Community service organisations

Include:

• institutions financed mostly by members’ contributions, e.g. trade unions, professional societies, consumer associations, political parties, churches and religious societies, and social, cultural, recreational and sports clubs; and
• charities and aid organisations financed by voluntary transfers.

Exclude:

• community service organisations and non-profit institutions controlled and mainly financed by government (include in General Government).

Non-financial corporations

Private non-financial corporations

Private trading 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:

• all resident private corporate trading enterprises, and non-profit institutions that are market producers of goods or non-financial services;
• intra-group financiers (Financial Sector (Collection of Data) Act 2001 Category I) and parent companies with significant holdings of shares in private trading companies;
• privately owned schools and hospitals;
• any unincorporated unit that is a branch in Australia of a non-resident company and which is not included in the financial sector; and
• any unincorporated business owned and operated by trading corporations (e.g. joint ventures).

Exclude:

• unincorporated businesses, except for branches of non-resident companies and joint ventures or partnerships owned by corporations; and
• non-resident enterprises.

Private unincorporated businesses

This comprises 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.

Public non-financial corporations

Commonwealth Government

Trading enterprises owned by the Commonwealth are those businesses which are owned and controlled by the Australian 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:

• government departments (show as Commonwealth General Government); and
• government-owned financial institutions (these are classified as financial institutions).

State, Territory and local government

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 50% or more owned 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:

• State government owned financial institutions and entities in the general government; and
• State and Territory central borrowing authorities.

General Government

Commonwealth General Government

Australian 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:

• departments and agencies such as Department of Finance, Department of Defence, ABC, SBS, Australian Film Commission and CSIRO;
• Commonwealth government unincorporated enterprises which provide goods and services to the Australian Commonwealth Government and/or to the public for free or at prices that are not economically significant (e.g. government employee cafeterias, munitions factories);
• non-profit institutions controlled and mainly financed by the Commonwealth government;
• Commonwealth Government quasi-corporations which sell their output, at near market prices, exclusively to other government units (e.g. government printers and defence force housing schemes); and
• public universities.

Exclude:

• government trading enterprises such as Australia Post (record as Trading enterprises owned by the Commonwealth Government); and
• departments of the ACT and Northern Territory Governments (record as State, Territory and local general government); and
• Reserve Bank of Australia (RBA) and Commonwealth Government financial institutions such as Export Finance and Insurance Corporation (EFIC) (record as financial institutions as appropriate).

State, Territory and local general government

State, Territory and local general government 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 and hence provided free of charge or at nominal prices well below the cost of production.

Include:

• State and local government unincorporated enterprises which provide goods and services to their government and/or to the public for free or at prices that are not economically significant (e.g. government employee cafeterias, municipal swimming pools);
• non-profit institutions controlled and mainly financed by State and local government;
• State government quasi-corporations which sell their output, at near market prices, exclusively to other government units (e.g. government printers);
• ACT and Northern Territory Government departments and agencies; and
• state schools, technical and further education colleges and state owned hospitals.

Exclude:

• all State and local government trading enterprises and financial enterprises (e.g. rail, and municipal water authorities); and
• State and Territory central borrowing authorities.

Financial corporations

RBA

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.

Other central bank institutions

This sub-sector includes APRA.

Depository corporations

ADIs

ADIs refers to corporations, in relation to which an authority under subsection 9(3) of the Banking Act 1959 is in force.

Include:

• development banks; and
• foreign banks licensed to operate in Australia under the Banking Act 1959.

Exclude:

• merchant banks (record as non-bank financial intermediaries); and
• non-resident banks (report as non-resident counterparties).

Registered Financial Corporations (RFCs)

RFCs refers to corporations registered under the Financial Sector (Collection of Data) Act 2001 that are classified as Categories D and Other and cash management trusts.

Include:

• money market corporations (also referred to as ‘merchant banks’) (D);
• pastoral finance companies, finance companies and general financiers (other); and
• cash management trusts.

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

Exclude:

• intra group financiers registered under the Financial Sector (Collection of Data) Act 2001 Category I (record as private trading corporations).

Life insurance

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

Include:

• benefit fund friendly societies that are regulated under the Life Insurance Act 1995.

Exclude:

• insurance companies offering house, car and marine insurance (these are general insurance companies); and
• health benefit funds of friendly societies that are regulated under the National Health Act 1959.

Pension funds

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:

• Pooled Superannuation Trusts;
• public sector superannuation funds (including SIS-exempt funds);
• private sector superannuation funds;
• ADFs; and
• superannuation funds established by life insurance companies.

Exclude:

• retirement savings accounts.

Other insurance corporations

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:

• EFIC; and
• private sector and government-owned general and health insurance enterprises, both proprietary and mutual.

Central borrowing authorities (CBAs)

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

Include:

• New South Wales Treasury Corporation (NSW TCorp);
• Treasury Corporation of Victoria (TCV);
• Queensland Treasury Corporation (QTC);
• South Australian Government Financing Authority (SAFA);
• Western Australian Treasury Corporation (WATC);
• Tasmanian Public Finance Corporation (Tas Corp);
• Northern Territory Treasury Corporation (NT TCorp); and
• ACT Treasury

Other financial institutions

Financial auxiliaries

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:

• fund managers as principal;
• stockbrokers; and
• insurance brokers.

Exclude:

• non-resident enterprises.

Financial intermediaries

Securitisers

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 fulfil interest and principal requirements for investors.

Unit trusts

Include:

• mortgage, fixed interest and equity unit trusts.

Exclude:

• cash management trusts. These are to be included in RFCs;
• property and trading trusts, include in private trading corporations; and
• non-resident enterprises.

Other financial intermediaries

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

Include:

• economic development corporations owned by governments;
• co-operative housing societies;
• investment companies; and
• common funds including cash common funds.

Exclude:

• non-resident enterprises.

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 one based on 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:

• foreign branches and foreign subsidiaries of Australian enterprises; and
• residents of Norfolk Island and other external territories of Australia.

Exclude:

• Australian branches or subsidiaries of an overseas company.

Specific instructions

Section A: Assets

1. Cash and liquid assets

Generally include:

• Australian notes and coin;
• foreign currency;
• cash at branches;
• cash at bankers;
• deposits at call;
• money at short call;
• exchange settlement accounts;
• securities purchased under agreement to resell;
• margin deposit accounts; and
• gold bullion.

Exclude:

• bills of exchange (reported as either Securities held for trading or Securities not held for trading);
• bills receivable and remittances in transit; and
• cheques received but not yet deposited.

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 Australian and foreign currency notes and coins of the reporting entity. Notes and coins in transit between any branches or offices of the reporting entity should be reported.

1.2 Deposits at call:

Include:

• all deposits with Australian resident ADIs that are available on demand. Report 11am accounts and 24-hour money.
• all deposits with RFCs that are available on demand. Report 11am accounts and 24-hour money.
• all deposits with other financial institutions resident in Australia that are available on demand. Report 11am accounts and 24-hour money.

Exclude:

• exchange settlement accounts.

1.3 Gold bullion

Include:

• gold coin;
• gold bullion held in Australia and elsewhere; and
• gold certificates held as investments.

Exclude:

• loans repayable in gold bullion.

1.4 Due from clearing houses

Include:

• net claims on recognised clearing houses in Australia such as the Australian Stock Exchange Clearing House (ASXCH) and Sydney Futures Exchange Clearing House (SFXCH).

1.5 Securities purchased under agreements to resell

Treatment is to be consistent with AASB 9.

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 securities held for trading or securities not held for trading sections is not affected.

1.6 Due from financial institutions

Generally include:

• settlement account balances – Austraclear and the Reserve Bank Information and Transfer System (RITS) balances with Australian ADIs and non-bank financial institutions;
• amounts owing from Australian ADIs and other financial institutions in relation to the payments system;
• items in the course of collection from Australian ADIs and other financial institutions in relation to the payments system; and
• margin deposit accounts with brokers.

Exclude:

• certificates of deposits. These items should be reported as short-term debt securities in either the Securities held for trading or Securities not held for trading category.

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.

1.7 Total cash and liquid assets

Sum all cash and liquid assets reporting items above, due from residents.

2. Securities held for Trading

Securities held for trading are defined in accordance with AASB 9.

Securities held for trading are recorded at net fair value, which is defined in accordance with AASB 9.

Interest earned on securities held for trading is reported as interest income in the ADI Statement of Financial Performance. 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:

• all securities (stock) lent or sold under repurchase agreements.  The payable due to counterparties with whom the stock has been lent or sold and from whom cash has been lodged is recorded in Securities sold under agreements to repurchase.
• holdings of debt securities issued by related parties that are resident entities (claims on non-resident related parties should be reported to the appropriate memo item)

Exclude:

• all securities borrowed or purchased under resale agreements. The receivable due from counterparties from whom the stock has been borrowed or purchased and with whom cash has been lodged is recorded in Securities purchased under agreements to resell.

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

2.1 Australian Commonwealth Government securities

Include:

• debt securities issued by the Australian Commonwealth government. Do not include securities issued by Government business enterprises.

2.2 Other Australian Government securities

Include:

• debt securities issued by Australian State and Territory governments and Australian State and Territory central borrowing authorities. Do not include securities issued by Australian State and Territory government business enterprises.

2.3 Foreign government securities

2.4 ADI debt securities

Include:

• debt securities that have been issued by ADIs (e.g. negotiable certificates of deposits, transferable certificates of deposits, medium term notes, debentures, unsecured notes).

2.5 Corporate debt paper

Include:

• debt securities that have been issued by corporate entities other than ADIs.

2.6 Asset backed debt securities

An asset-backed security is a debt security that is secured or supported by a pool of assets. These forms of securities are usually issued by a SPV.

2.7 Other debt securities

2.8 Equity securities

Include:

• all equity securities held for trading consistent with the classification and measurement basis used for Securities held for trading by institutions in accordance with AASB 7.

2.9 Total securities held for trading

Sum all ‘securities held for trading’ reporting items.

3. Securities not held for trading

Securities not held for trading are those securities, which do not fall within the definition of ‘Securities held for trading’ (as defined in accordance with 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 where it is not technically possible to hold to maturity).

The ADI’s strategic investment in the equity securities of entities that are deemed to be controlled entities, associates or joint ventures, defined in accordance with AASB 127, AASB 3 and AASB 128, are to be disclosed in ‘Other Investments’ in ARF 322.0.

Securities not held for trading are to be recorded in accordance with AASB 9.

Interest earned on securities not held for trading 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:

• all securities (stock) lent or sold under repurchase agreements.  The payable due to counterparties with whom the stock has been lent or sold and from whom cash has been lodged is recorded in Securities sold under agreements to repurchase.
• holdings of debt securities issued by related parties that are resident entities.

Exclude:

• All securities borrowed or purchased under resale agreements.  The receivable due from counterparties from whom the stock has been borrowed or purchased and with whom cash has been lodged is recorded in Securities purchased under agreements to resell.

3.1 Australian Commonwealth Government securities

Include:

• debt securities issued by the Australian Commonwealth Government. Do not include securities issued by government business enterprises.

3.2 Other Australian Government securities

Include:

• debt securities issued by Australian State and Territory governments and Australian State and Territory central borrowing authorities. Do not include securities issued by Australian State and Territory government business enterprises.

3.3 Foreign government securities

3.4 ADI debt securities

Include:

• debt securities that have been issued by ADIs (e.g. negotiable certificates of deposits, transferable certificates of deposits, medium term notes, debentures; unsecured notes).

3.5 Corporate debt paper

Include:

• debt securities that have been issued by corporate entities other than ADIs.

3.6 Asset backed debt securities

An asset-backed security is a debt security that is secured or supported by a pool of assets. These forms of securities are usually issued by a SPV.

3.7 Other debt securities

Equity securities

Include:

• all equity securities consistent with the classification used for Securities not held for trading by institutions.

3.8 ADI equity securities

Record the holding of equity securities issued by ADIs that are held as Securities not held for trading.

Exclude:

• equity investments in ‘Parent Entity’ or ‘Controlled Entities’ or ‘Associates’. These investments are to be reported in the classification ‘Other Investments’.

3.9 Insurance corporations equity securities

Record the holding of equity securities issued by insurance corporations that are held as Securities not held for trading.

Exclude:

• equity investments in ‘Parent Entity’, ‘Controlled Entities’ or ‘Associates’. These investments are to be reported in the classification ‘Other Investments’.

3.10 Other equity securities

Record the holding of equity securities issued by corporations other than ADIs and insurance corporations that are held in the Securities not held for trading.

Exclude:

• equity investments in ‘Parent Entity’, ‘Controlled Entities’ or ‘Associates’. These investments are to be reported in the classification ‘Other Investments’.

3.11 Total securities not held for trading

Sum all ‘Securities not held for trading’ reporting items.

4. Other deposits

Include:

• deposits that are not invested on a call or short term basis i.e. term deposits that are not on a call/demand basis. Disclose total deposits invested with the following counterparty classifications.

4.1 ADIs

4.2 Other

4.3 Total other deposits

5. Net Acceptances of Customers

Acceptances comprise undertakings by an ADI to pay bills of exchange drawn on 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 securities held for trading or securities not held for trading.

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.

6. Loans and advances

Note: Loans and advances are investments of the ADI, which are deemed for this form not to 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 Securities held for trading or Securities not held for trading.

Generally include:

• overdrafts;
• secured and unsecured lending;
• financial lease agreements;
• account balances which do not qualify as deposits;
• credit card outstanding balances;
• term loans;
• mortgage lending;
• commercial loans;
• equity participation in leveraged leases;
• redeemable preference share finance; and
• subordinated loans.

Exclude:

• bills of exchange, commercial paper and promissory notes (report as Securities held for trading or Securities not held for trading);
• bills of exchange both discounted and held notes (report as Securities held for trading or Securities not held for trading);
• bonds, debentures, medium term notes (MTNs), transferable certificates of deposit (TCDs), floating-rate notes (FRNs) (show as Securities held for trading or Securities not held for trading);
• FRNs (show as Securities held for trading or Securities not held for trading);
• account balances with financial intermediaries such as ADIs (show as deposits or due from other financial institutions); and
• receivables due from counterparties arising from the first leg of a repurchase agreement.  This receivable should be reported to Securities purchased under agreements to resell.

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. where 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[3] (IFRS) 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 220.

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'.

Loans and Advances

6.1 Revolving credit – Balance Outstanding (1)

Include:

• the gross value of loans of a revolving credit nature to, for a purpose other than housing.

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.

6.1 Revolving credit – Specific provision (2)

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

6.1 Revolving credit – General Reserve for Credit Losses (3)

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

6.2 Credit cards – Balance Outstanding (1)

Include:

• the gross value of credit card liabilities.

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

6.2 Credit cards – Specific provisions (2)

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

6.2 Credit cards – General Reserve for Credit Losses (3)

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

6.3 Housing – variable rate – Balance outstanding (1)

Include:

• the value of variable rate housing loans, for the construction or purchase of dwellings for owner occupation; and
• revolving credit or redraw facilities originally approved for a purpose of predominantly owner-occupied housing.

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

6.3 Housing – variable rate – Specific provisions (2)

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

6.3 Housing – variable rate – General Reserve for Credit Losses (3)

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

6.4 Housing – fixed rate – Balance outstanding (1)

Include:

• the value of fixed rate housing loans, for the construction or purchase of dwellings for non-owner occupation; and
• revolving credit or redraw facilities originally approved for a purpose of predominantly non-owner occupied housing.

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

6.4 Housing – fixed rate – Specific provisions (2)

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

6.4 Housing – fixed rate – General Reserve for Credit Losses (3)

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

6.5 Term loans – variable rate – Balance outstanding (1)

Include:

• the gross value of variable rate term loans for purposes other than housing and other than revolving credit, credit card and lease financing.

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

6.5 Term loans – variable rate – Specific provisions (2)

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

6.5 Term loans – variable rate – General Reserve for Credit Losses (3)

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

6.6 Term loans – fixed rate – Balance outstanding (1)

Include:

• the gross value of fixed rate term loans for purposes other than housing and other than revolving credit, credit card and lease financing.

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

6.6 Term loans – fixed rate – Specific provisions (2)

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

6.6 Term loans – fixed rate – General Reserve for Credit Losses (3)

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

6.7 Lease financing – Balance outstanding (1)

Include:

• the gross value of lease financing.

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

6.7 Lease financing - Specific provisions (2)

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

6.7 Lease financing – General Reserve for Credit Losses (3)

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

6.8 Other loans and advances – Balance outstanding (1)

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

6.8 Other loans and advances - Specific provisions (2)

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

6.8 Other loans and advances – General Reserve for Credit Losses (3)

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

6.9 Total loans and advances – Balance outstanding (1)

Sum the gross value of loans and advances.

6.9 Total loans and advances – Specific provision (2)

Record the specific provisions for impairment applying to all loans.

6.9 Total loans and advances – General Reserve for Credit Losses (3)

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

6.10 Less: Deferred fee income

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

6.11 Total net loans and advances (net of specific provision, general reserve for credit losses and deferred fee income)

Subtract ‘General Reserve for Credit Losses’, and ‘specific provisions’ and ‘Deferred Fee Income’ from ‘total gross loans and advances’.

6.11.1 of which: Loans to associates/joint ventures

6.11.2 of which: Loans held at fair value

Record loans held at fair value in accordance with AASB 9.

7. Investments relating to Life Insurance Business

7.1 Total investments relating to life insurance business

7.1.1 Of which: Excess of net market values of the investment in life insurance subsidiaries over recognised net assets of subsidiary

8. Other investments

8.1 Investment in parent entity (where not part of consolidated group)

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

8.2 Investment in associates

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

8.3 Interest in joint ventures

Report the total amount of interests in joint ventures (entities).

8.4 Equity investments in former Special Service Providers (SSPs)

Report the total value of shareholdings in former SSPs and is to be completed by ADIs that have affiliations with SSPs.

8.5 Other

Report any other investments not included above.

8.6 Total other investments

Sum all reporting line items for ‘Other Investments’.

9. Fixed assets

The reporting of all fixed asset 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’.

9.1 Property

Include:

• property (owner-occupied and investment) consistent with the classification and measurement basis used in AASB 116 Property, Plant and Equipment (AASB 116) and AASB 140 Investment Property (AASB 140).

9.2 Plant and equipment

Include:

• furniture, equipment (excluding ‘Information technology’), re-modelling costs to existing premises, and interest capitalised during the period of construction of buildings in accordance with AASB 116.

9.3 Less: Accumulated depreciation/impairment - Property, plant and equipment

Report total depreciation and impairment for all property, plant and equipment items.

9.4 Property, plant and equipment net of accumulated depreciation /impairment

Deduct ‘Accumulated depreciation/impairment’ from the gross values for ‘Property’ and ‘Plant and equipment’.

9.5 Information technology

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

9.5.1 Work in progress (WIP):

9.5.1.1 Hardware and software application costs

Include:

• the cost of hardware and software purchased from third parties not yet in use i.e. material costs.

9.5.1.2 Development and other on costs

Include:

• software development, hardware installation costs and associated overheads that are carried out internally not yet in use i.e. labour and overhead costs.

9.5.1.3 Total WIP

Sum of line items hardware and software application costs and development and other on costs.

9.5.2 In use:

9.5.2.1 Hardware and software application costs 

Include:

• the cost of hardware and software purchased from third parties in use i.e. material costs.

9.5.2.2 Development and other on costs

Include:

• software development, hardware installation costs and associated overheads that are carried out internally which are in use i.e. labour and overhead costs.

9.5.2.3 Total in use

Sum of line items hardware and software application costs and Development and other on costs.

9.5.3 Other information technology 

Report other information technology expenditure which is not separately reported above.

9.5.4 Total information technology

Report total gross value of Information technology WIP and in use here.

9.6 Less: Accumulated depreciation/impairment - Information technology

Report accumulated depreciation/impairment in total for all Information technology assets.

9.7 Total information technology net of accumulated depreciation/impairment

Subtract ‘Accumulated depreciation/impairment - Information technology’ from ‘Total information technology (WIP plus In Use plus Other information technology)’.

9.8 Other

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

9.9 Less: Accumulated depreciation

Report accumulated depreciation/impairment relating to other fixed assets.

9.10 Total other net of accumulated depreciation/impairment

Subtract ‘Less: Accumulated depreciation’ from ‘Other’.

9.11 Net fixed assets

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

10. 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 Standards. As a guide, ADIs are suggested to follow the disclosure adopted in its annual financial report.

10.1 Intangible assets with a finite life

Include:

• total intangible assets with a finite life.

10.2 Less: Accumulated amortisation

Include:

• the total amount of amortisation of intangible assets, over the period from the date of acquisition to the end of the reporting period.

10.3 Net intangible assets with a finite life

Subtract the ‘accumulated amortisation’ from the ‘intangible assets with a finite life’.

10.4 Intangible assets with an infinite life

Include:

• total intangible assets with an infinite life.

10.5 Less: Impairment

Include:

• the total amount of impairment of intangible assets over the period from the date of acquisition to the end of the reporting period.

10.6 Net intangible assets with an infinite life

Subtract the ‘Impairment’ from the ‘Intangible assets with an infinite life’.

10.7 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.

10.8 Less: Impairment

Include:

• the total amount of impairment over the period from the date of acquisition to the end of the reporting period.

10.9 Net goodwill

Include:

• the net amount of goodwill after impairment.

10.10 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.

11. Other assets

11.1 Interest receivable

Include:

• interest accrued for but not yet received.

11.2 General insurance premiums and other receivables

11.3 Deferred acquisition costs – general insurance policies

11.4 Capitalised debt raising/funding costs

Report costs associated with debt raisings and other similar transaction related costs.

11.5 Capitalised costs associated with establishing/setting up securitisation vehicles/programs

Report the balance of securitisation establishment costs that are capitalised and deferred.

11.6 Capitalised loan and lease origination fees and commissions paid to mortgage originators and brokers

Report origination fees and commissions deferred.

11.7 Other capitalised expenses of a general nature

Report any other capitalised expenses not reported above.

11.8 Derivative financial instruments

Include:

• all derivatives entered into after adoption of International Financial Reporting Standards (IFRS) consistent with the classification and measurement basis used for derivatives by institutions in accordance with AASB 132, AASB 7 and AASB 9. This applies to trading and banking book derivatives. Derivative financial instruments in existence prior to adoption of IFRS are to be reported in accordance with AASB 1 First-time Adoption of Australian Accounting Standards (AASB 1).

11.8.1 Trading book derivatives

11.8.2 Banking book derivatives

11.9 Amounts receivable from clients – Outstanding security settlements

For those institutions that have broking activity (i.e. equity broking) 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’.

11.10 Deferred tax assets

Tax assets are defined in accordance with AASB 112 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:

11.10.1 From tax losses

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

11.10.2 From specific provision and General Reserve for Credit Losses

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

11.10.3 Other

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

11.11 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.

11.12 Defined benefit assets

Include:

• defined benefit assets i.e. surplus consistent with the classification and measurement basis used in AASB 119 Employee Benefits (AASB 119).

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

Include:

• non-current assets and disposal groups classified as held for sale consistent with classification and measurement basis used in AASB 5 Non-current Assets Held for Sale and Discontinued Operations (AASB 5).

11.14 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 institution’s internal procedures be adopted regarding the recording and reporting of these types of balances.

11.15 Other

Include all other assets not separately identified above.

For example, include:

• commodities other than gold bullion;
• valuables;
• artwork;
• other receivables (e.g. fees and commissions receivable); and
• prepayments.

Exclude:

• deposits, loans and other claims on related parties that are resident entities (claims on non-resident related parties should be reported to the appropriate memo item). These claims should be reported to the relevant item above.

11.16 Total other assets

Sum all the reporting items listed under ‘Other assets’.

12. Total assets

Sum total assets including Australian dollar denominated assets and foreign currency denominated assets.

12.1 Of which: Due from associated entities/joint ventures

Section B: Liabilities

1. Due to clearing houses

Include:

• amounts due to recognised clearing houses such as the ASXCH and SFXCH in Australia. Include margin calls from stock and derivative exchanges which are payable.

2. Due to financial institutions

2.1 Total due to financial institutions

Include:

• settlement account balances – Austraclear, and RITS balances with Australian banks and non-bank financial institutions;
• amounts owing to Australian banks and other financial institutions in relation to the payments system; and
• items in the course of collection – due to Australian banks and other financial institutions in relation to the payments system.
• settlement account balances due to the RBA. Funds borrowed from the RBA should also be reported in this data item.
• settlement account balances due to Australian ADIs.
• settlement account balances due to RFCs.
• settlement account balances due to other Australian financial institutions.

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.

3. Acceptances

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 securities held for trading or securities not held for trading.

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. Deposits

4.1 Call/on demand

Include the following:

• Cheque

Accounts which provide checking facilities of any kind. This account can either be interest bearing or non-interest bearing. This account may be linked with other accounts offering transaction or non-transaction facilities. Do not include accounts which have a cheque facility but a cheque book has never been issued.

• Other payment methods

Accounts from which payments may be made to third parties – Automated Teller Machines (ATMs), debit card or another electronic device.

All deposits are to be reported net off any setoffs (only if in accordance with AASB 132, AASB 7 and AASB 9).

• notice of withdrawal account

A written notice required before funds can be withdrawn or transferred out of the account;

• demand deposits;
• savings deposits;
• money market deposit accounts on a call/demand basis;
• other savings deposits on a call/demand basis; and
• 11am accounts and 24-hour money.

Exclude from this classification:

• negotiable and transferable certificates of deposit;
• subordinated debt issues;
• subordinated loans;
• loans due to the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity;
• securities sold under agreements to repurchase;
• treasury related short-term borrowings from other ADIs; and
• promissory notes.

4.2 Term deposits

An account in which money has be placed for a fixed period for a stated interest rate.

4.3 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 Other

Record in aggregate all other forms of deposits that are not included in the deposit account classifications noted above.

4.5 Total deposits

Sum the total of ‘Call/on demand’, ‘Term deposits’, ‘Certificates of deposit’ and ‘Other’.

5. Other borrowings

Include:

• securities sold under agreements to repurchase;
• subordinated loans with a residual maturity of 12 months or less;
• short-term loans due to the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity;
• treasury related short-term borrowings from other ADIs;
• promissory notes with a residual maturity of 12 months or less;
• commercial paper with a residual maturity of 12 months or less; and
• short-term debt securities from the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity.

Exclude:

• negotiable and transferable certificates of deposits;
• subordinated loans, promissory notes, commercial paper with a residual maturity greater than 12 months; and
• deposits.

5.1 Securities sold under agreements to repurchase

These transactions are to be recorded consistently with AASB 9. 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 Securities held for trading or Securities not held for trading sections is not affected.

5.2 Promissory notes/commercial paper

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 borrowings’.

5.3 Short-term loans

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:

• all debt securities issued with a residual term to maturity of 12 months or less. Other debt securities with a residual maturity greater than 12 months should be reported as ‘long-term debt’.

5.3.1 Short-term loans: Variable

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

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

Amounts due to clearing houses should be separately identified and reported as ‘Due to clearing houses’. Settlement account balances should be separately identified and reported as ‘Due to financial institutions’.

5.3.2 Short-term loans: Fixed

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

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

Amounts due to clearing houses should be separately identified and reported as ‘Due to clearing houses’. Settlement account balances should be separately identified and reported as ‘Due to financial institutions’.

5.4 Total other borrowings

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. In addition, this should relate to Australian business operations.

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

Include:

• 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:

• provision for self insurance;
• frauds;
• litigation, fraud detection and prevention;
• forgeries; and
• non-transferred insurance risks.

7.4 Mortgage insurance claims and unearned premiums

7.5 Restructuring costs

Report all provisions raised for the restructuring of an organization.

Include:

• severance, termination and redundancy payments; and
• integration costs.

7.6 Other provisions

Report all other provisions not identified above.

Include:

• specific provision for off-balance sheet credit related commitments;
• leased premises surplus to current requirements; and
• provision for subsidiary integration costs.

7.7 Total provisions

Sum all the ‘provisions’ reporting items.

8. General Insurance Outstanding Claims and Unearned Premium Liability

9. Life Insurance Policy Liabilities

10. Unvested Policy Holder Benefits

11. 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.

11.1 Debt securities

Report debt securities that have been issued in Australia 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:

• bonds;
• debentures;
• unsecured notes;
• fixed-interest securities;
• MTNs;
• inflation-indexed bonds;
• FRNs;
• other floating-rate debt securities;
• asset-backed bonds;
• non-participating preference shares (a special type where the holder has no entitlement to a share in the residual value on dissolution of the issuing company);
• subordinated bonds and notes;
• Euro notes;
• Euro bonds; and
• Euro medium-term notes.

As a guide exclude:

• hybrid securities;
• trading derivatives;
• convertible notes prior to conversion;
• negotiable and transferable certificates of deposit;
• subordinated debt issues with a residual maturity of 12 months or less;
• promissory notes with a residual maturity of 12 months or less; and
• commercial paper with a residual maturity of  12 months or less.

11.2 Loans

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

Include:

• secured and unsecured borrowings;
• financial lease agreements;
• term loans;
• mortgages;
• commercial loans;
• equity participation in leveraged leases;
• redeemable preference share finance; and
• loans due to related parties that are resident entities.

Exclude:

• loan capital (e.g. subordinated loans);
• short-term loans due to related parties that are resident entities; and
• treasury related short-term borrowings from other banks.

11.2.1 Loans – Variable rate

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

11.2.2 Loans – Fixed rate

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

11.3 Total bonds, notes and long-term borrowings

Sum the total face value of all ‘Bonds, notes and long-term borrowings’ issued or raised in Australia.

12. Creditors and other liabilities

12.1 – 12.2 Defined benefit liabilities

Include:

• defined benefit liabilities i.e. deficit broken up into current and non-current, consistent with the classification and measurement basis used in AASB 119.

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

12.3 Interest payable

Include:

• interest accrued for but not yet paid.

12.4 Unearned interest

Include:

• interest received but not yet earned e.g. interest received in advance on fixed interest loan portfolio.

12.5 Amounts payable to clients - 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’.

12.6 Derivative financial instruments

Include:

• all derivatives entered into after adoption of IFRS consistent with the classification and measurement basis used for derivatives by institutions in accordance with AASB 132, AASB 7 and AASB 9. This applies to trading and banking book derivatives. Derivative financial instruments in existence prior to adoption of IFRS are to be reported in accordance with AASB 1.

12.7 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 institutions internal procedures be adopted regarding the recording and reporting of these types of balances.

12.8 Due to merchants

12.9 Liabilities included in disposal groups classified as held for sale

Include:

• liabilities included in disposal groups classified as held for sale consistent with AASB 5 (paragraph 38).

12.10 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.

12.11 Other

Include:

• other liabilities not separately identified above e.g. unearned fees and commission received in advance but not recognised as earned for accounting purposes.

12.12 Total creditors and other liabilities

Sum the reporting items listed under ‘Creditors and other liabilities’.

13. 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:

• preference shares;
• convertible notes; and
• subordinated loans of a residual maturity of more than one year.

13.1 Members withdrawable shares

Include the value of ADI member withdrawable shares.  This item should be prepared in accordance with the APRA prudential treatment and not applicable accounting standards.  For prudential purposes, an ADI member share is classified as a liability and is not capital.  In the event of redemption, the liability would be reduced by the issue value of shares redeemed.

13.2 Loan capital

As a guide include:

• subordinated loans of a residual maturity of more than one year.

13.3 Hybrid securities

As a guide include:

• converting preference shares; and
• convertible notes.

13.4 Total loan capital and hybrid securities

Total all ‘Loan capital and hybrid securities’ items listed above.

14. Total liabilities

Sum total liabilities.

14.1 Of which: Due to associated entities/joint ventures

15. Net Assets

Calculated as ‘Total assets’ less ‘Total liabilities’.

Section C: Shareholders’ equity

1. Share capital

1.1 Ordinary shares

Include:

• ordinary share capital on issue.

1.2 Preference shares

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

1.3 Other

Include:

• any other form of share capital not included above (e.g. income securities).

1.4 Total share capital

2. Reserves

2.1 General reserve

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

Exclude:

• from General Reserve any portion of General Reserve for Credit Losses that forms part of Shareholders’ Equity.  These excluded amounts are to be recorded in the General Reserve for Credit Losses column in the assets section of this form.

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.

2.3 Asset revaluation reserve

2.3.1 Owner-occupied property

Include:

• ARR relating to the revaluation of owner-occupied property.

2.3.2 Plant and equipment

Include:

• balance of the ARR relating to the revaluation of property, plant and equipment.

2.3.3 Investments in associates/share of associates

Include:

• the balance of the ARR relating to the revaluation of investments in associates

2.3.4 Intangibles revaluation surplus

Include:

• balance of the ARR relating to the revaluation of intangible assets.

2.3.5 Relating to non-current assets or disposal groups held for sale

Include:

• the balance of the ARR relating to revaluation of non-current assets or disposal groups held for sale in accordance with AASB 5.

2.3.6 Other

ARR relating to the revaluation of other assets.

2.3.7 Total asset revaluation reserve

Sum the reporting items listed under ‘Asset revaluation reserve’.

2.4 Foreign currency translation reserve

Include:

• the exchange rate differences arising on translation of assets and liabilities in accordance with AASB 121.

2.5 Fair Value Through OCI Reserve

 2.5.1 Marketable securities

Include:

• Fair value through OCI reserve for all marketable securities (debt and equity) consistent with the classification and measurement basis used by institutions in accordance with AASB 130 and AASB 7.

2.5.2 Other

Include:

• Fair value through OCI reserve for loans and advances and all other items not separately identified above, consistent with the classification and measurement basis used in AASB 9, AASB 132 and AASB 7.

2.6 Cash flow hedge reserve

Include:

• the effective portion of the gain or loss on the cash flow hedging instrument as required by AASB 9, AASB 132 and AASB 7.

2.7 Share based payments reserve

Include:

• the equity settled share based payments reserve amounts as required by AASB 2 Share based Payments (AASB 2).

2.8 Other reserves

Include:

• all reserves not separately identified above. Report dividend reinvestment plan reserve in this reporting item.

2.9 Total reserves

Sum the reporting items listed under ‘Reserves’.

3. Retained profits

4. Shareholders’ Equity attributable to Shareholders of the Company

5. Minority interests

6. Total shareholders’ equity

Sum the reporting items ‘Shareholders’ equity’.

[1]  Monetary items are defined to mean units of currency held and assets and liabilities to be received or paid in a fixed or determinable number of units of currency. Spot rate means the exchange rate for immediate delivery.

[2]  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.

[3] The IFRS are the International Financial Reporting Standards (IFRS), being the standards set by the International Accounting Standards Board, as existing at 1 July 2019.