Federal Register of Legislation - Australian Government

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Determinations/Financial (Other) as made
This instrument revokes the Financial Sector (Collection of Data) (reporting standard) determination No. 23 of 2018, including Reporting Standard ARS 323.0 Statement of Financial Position (Licensed ADI), and determines Reporting Standard ARS 323.0 Statement of Financial Position (Licensed ADI).
Administered by: Treasury
Registered 17 Jun 2019
Tabling HistoryDate
Tabled HR02-Jul-2019
Tabled Senate02-Jul-2019

 

Financial Sector (Collection of Data) (reporting standard) determination No. 27 of 2019

Reporting Standard ARS 323.0 Statement of Financial Position (Licensed ADI)

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. 23 of 2018, including Reporting Standard ARS 323.0 Statement of Financial Position (Licensed ADI) made under that Determination; and

 

(b)   DETERMINE Reporting Standard ARS 323.0 Statement of Financial Position (Licensed ADI), 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 323.0 Statement of Financial Position (Licensed ADI) comprises the document commencing on the following page.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Reporting Standard ARS 323.0

Statement of Financial Position (Licensed ADI)

Objective of this Reporting Standard

This Reporting Standard sets out requirements for the provision of information to APRA relating to an authorised deposit-taking institution’s statement of financial position.

It includes Reporting Form ARF 323.0 Statement of Financial Position (Licensed ADI) and the associated specific instructions.

 

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 323.0 Statement of Financial Position (Licensed ADI) (ARF 323.0) 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) as set out in the table below.

Class of ADI

Applicable

Building Society

Yes

Credit Union

Yes

 

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 323.0 for each relevant 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 of this Reporting Standard, 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 specified in 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 which 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 the 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.

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.

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

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.

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

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.

 

 

 


ARF_323_0: Statement of Financial Position (L)

 

Australian Business Number

Institution Name

Reporting Period

Scale Factor

Quarterly

Whole dollars no decimal place

Reporting Consolidation

 

Solo Book

 

 

Section A: Assets

 

1. Cash and Liquid Assets

 

1.1. Notes and coins

 

1.2. Deposits at call

 

1.2.1. ADIs

 

1.2.2. Registered financial corporations

 

1.2.3. Other financial institutions

 

1.3. Gold bullion

 

1.4. Due from clearing houses

 

1.5. Securities purchased under agreements to resell

 

1.6. Due from  Financial Institutions

 

1.6.1. RBA or central banks

 

1.6.2. ADIs

 

1.6.3. Registered financial corporations

 

1.6.4. Other financial institutions

 

1.7. Total cash and liquid assets

 

 

 

2. Securities held for trading

 

2.1. Australian Commonwealth government securities 

 

2.2. Other Australian government securities

 

2.3. ADIs debt securities

 

2.4. Corporate paper

 

2.5. Asset backed debt securities

 

2.6. Other debt securities

 

2.7. Equity securities

 

2.8. Total securities held for trading

 

 

 

3. Securities not held for trading

 

3.1. Australian Commonwealth government securities

 

3.2. Other Australian government securities

 

3.3. ADI debt securities

 

3.4. Corporate paper

 

3.5. Asset backed debt securities

 

3.6. Other debt securities

 

3.7. ADI equity securities

 

3.8. Insurance corporations equity securities

 

3.9. Other equity securities

 

3.10. Total securities not held for trading

 

 

 

4. Other Deposits

 

4.1. ADIs

 

4.2. Other

 

4.3. Total other deposits

 

 

 

5. Acceptances of customers

 

 

6. Loans and Advances

 

 

 

 

Balance Outstanding

Specific Provision

General Reserve for Credit Losses

(1)

(2)

(3)

6.1. Loans to Households

 

 

 

6.1.1. Housing Loans

 

 

 

6.1.1.1. Owner-occupied

 

 

 

6.1.1.1.1.      of which: Revolving credit secured by residential mortgage

 

 

 

6.1.1.2. Investment

 

 

 

6.1.1.2.1.      of which: Revolving credit secured by residential mortgage

 

 

 

6.1.1.3. Total housing

 

 

 

6.1.1.3.1.      of which: Fixed interest rate loans

 

 

 

6.1.1.3.2.      of which: Variable interest rate loans

 

 

 

6.1.2. Revolving credit

 

 

 

6.1.2.1. of which: Revolving credit secured by residential mortgage

 

 

 

6.1.3. Credit cards

 

 

 

6.1.4. Leasing

 

 

 

6.1.5. Other personal term loans

 

 

 

6.1.5.1. of which: Fixed interest rate loans

 

 

 

6.1.5.2. of which: Variable interest rate loans

 

 

 

6.1.6. Total loans to households

 

 

 

 

 

 

 

6.2. Commercial Lending

 

 

 

6.2.1. Private and public trading corporations

 

 

 

6.2.2. Private unincorporated businesses and CSOs

 

 

 

6.2.3. ADIs and other financial institutions

 

 

 

6.2.4. Government

 

 

 

6.2.5. Total commercial lending

 

 

 

6.2.5.1. of which: Revolving credit

 

 

 

6.2.5.2. of which: Credit cards

 

 

 

6.2.5.3. of which: Term loans - fixed rate

 

 

 

6.2.5.4. of which: Term loans - variable rate

 

 

 

6.2.5.5. of which: Leasing

 

 

 

6.2.5.6. of which: Other loans

 

 

 

 

 

 

 

6.3. Total gross loans and advances

 

 

 

6.3.1. of which: Margin Lending

 

 

 

6.3.2. of which: Loans held at fair value

 

 

 

 

6.4. Less: Deferred fee income

 

 

 

6.5. Loans and advances (net of specific provision, general reserve for credit losses and deferred fee income)

 

 

 

7. Other Investments

 

7.1. Parent entity

 

7.2. Controlled entities

 

7.3. Associates

 

7.4. Equity investments in former SSPs

 

7.5. Joint ventures

 

7.6. Other

 

7.7. Total other investments

 

 

 

8. Fixed Assets

 

8.1. Property

 

8.2. Plant and equipment

 

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

 

8.4. Property, plant and equipment net of accumulated depreciation/impairment

 

8.5. Information technology

 

8.5.1. Work in progress (WIP)

 

8.5.1.1. Hardware and software application costs

 

8.5.1.2.  Development and other on costs

 

8.5.1.3. Total WIP

 

8.5.2. In use

 

8.5.2.1. Hardware and software application costs

 

8.5.2.2. Development and other on costs

 

8.5.2.3. Total in use

 

8.5.3. Other information technology

 

8.5.4. Total information technology (WIP plus In use plus Other information technology)

 

8.6. Less: Accumulated depreciation/impairment - Information technology

 

8.7. Total information technology net of accumulated depreciation/impairment

 

8.8. Other

 

8.9. Less: Accumulated depreciation/impairment - Other

 

8.10. Total other net of accumulated depreciation/impairment

 

8.11. Net fixed assets

 

 

 

9. Intangible Assets

 

9.1. Intangible assets with a finite life

 

9.2. Less: Accumulated amortisation

 

9.3. Net intangible assets with a finite life

 

9.4. Intangible assets with an infinite life

 

9.5. Less: Impairment

 

9.6. Net intangible assets with an infinite life

 

9.7. Goodwill

 

9.8. Less: Impairment

 

9.9. Net goodwill

 

9.10. Net intangible assets

 

 

 

10. Other Assets

 

10.1. Interest receivable

 

10.2. Capitalised debt raising/funding costs

 

10.3. Capitalised costs associated with establishing/setting up securitisation vehicles/programs

 

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

 

10.5. Other capitalised expenses of a general nature

 

10.6. Derivative financial instruments

 

10.6.1. Trading book derivatives

 

10.6.2. Banking book derivatives

 

10.7. Deferred tax asset

 

10.7.1. From tax losses

 

10.7.2. From specific provision and general reserve for credit losses

 

10.7.3. Other

 

10.8. Loan/credit card servicing rights

 

10.9. Defined benefit assets

 

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

 

10.11. Items in suspense

 

10.12. Other

 

10.13. Total other assets

 

 

 

11. Total assets

 

11.1. of which: Deposits, Debt Securities and Loans to Controlled Entities and Associates

 

11.1.1. Subordinated

 

11.1.2. Secured

 

11.1.3. Other

 

11.2. of which: Deposits, Debt Securities and Loans to the Parent Entity

 

11.2.1. Subordinated

 

11.2.2. Secured

 

11.2.3. Other

 

 

 

12. Memo Items

 

12.1. Outstanding principal balance of securitised assets

 

12.1.1. of which: Owner-occupied housing loans

 

12.1.2. of which: Investment housing loans

 

12.1.3.  of which: Other personal loans

 

12.1.4. of which: Loans to selected commercial borrowers

 

12.2. Credit card chargebacks paid to card issuers during the reporting period

 

 

Section B: Liabilities

 

1. Due to clearing houses

 

 

 

2. Due to Financial Institutions

 

2.1. RBA or central banks

 

2.2. ADIs

 

2.3. Registered financial corporations

 

2.4. Other financial institutions

 

2.5. Total due to financial institutions

 

 

 

3. Acceptances

 

 

 

4. Deposits

 

4.1. Call/On Demand

 

4.1.1. Transaction

 

4.1.1.1. Households/retail

 

4.1.1.2. Other

 

4.1.2. Non-Transaction

 

4.1.2.1. Households/retail

 

4.1.2.2. Other

 

4.2. Term Deposits

 

4.2.1. Households/retail

 

4.2.2. Other

 

4.3. Certificates of deposit

 

4.4. Retirement saving accounts

 

4.5. Other

 

4.6. Total deposits

 

 

 

5. Other Borrowings

 

5.1. Securities sold under agreements to repurchase

 

5.2. Promissory notes/commercial paper

 

5.3. Other short-term debt securities

 

5.4. Short-Term Loans from ADIs

 

5.4.1. Variable rate

 

5.4.2. Fixed rate

 

5.5. Short-Term Loans: Other

 

5.5.1. Variable rate

 

5.5.2. Fixed rate

 

5.6. Total other borrowings

 

 

 

6. Income Tax Liability

 

6.1. Current tax liability

 

6.2. Deferred tax liability

 

6.3. Total income tax liability

 

 

 

7. Provisions

 

7.1. Dividends

 

7.2. Employee entitlements

 

7.3. Non-lending losses

 

7.4. Restructuring costs

 

7.5. Other provisions

 

7.6. Total provisions

 

 

 

8. Bonds, Notes and Long-Term Borrowings

 

8.1. Debt securities

 

8.2. Loans

 

8.2.1. Variable rate

 

8.2.2. Fixed rate

 

8.3. Total bonds, notes and long-term borrowings

 

 

 

9. Creditors and Other Liabilities

 

9.1. Defined benefit liabilities - current

 

9.2. Defined benefit liabilities - non current

 

9.3. Interest payable

 

9.4. Unearned interest

 

9.5. Derivative financial Instruments

 

9.5.1. Trading book derivatives

 

9.5.2. Banking book derivatives

 

9.6. Items in suspense

 

9.7. Due to merchants

 

9.8. Liabilities included in disposal groups classified as held for sale

 

9.9. Share capital repayable on demand

 

9.10. Other

 

9.11. Total creditors and other liabilities

 

 

 

10. Loan Capital and Hybrid Securities

 

10.1. Members withdrawable shares

 

10.2. Loan capital

 

10.3. Hybrid securities

 

10.4. Total loan capital and hybrid securities

 

 

 

11. Total liabilities

 

11.1. of which: Deposits, Debt Securities and Loans from Controlled Entities and Associates

 

11.1.1. Subordinated

 

11.1.2. Secured

 

11.1.3. Other

 

11.2. of which: Deposits, Debt Securities and Loans from the Parent Entity

 

11.2.1. Subordinated

 

11.2.2. Secured

 

11.2.3. Other

 

11.3. of which: Other secured deposits, debt securities and loans

 

 

 

12. Net assets

 

 

Section C: Shareholders' Equity

 

1. Share Capital

 

1.1. Ordinary shares

 

1.2. Preference shares

 

1.3. Other

 

1.4. Total share capital

 

 

 

2. Reserves

 

2.1. General reserves

 

2.2. Capital profits reserve

 

2.3. Asset Revaluation Reserve

 

2.3.1. Owner-occupied property

 

2.3.2. Plant and equipment

 

2.3.3. Intangibles revaluation surplus

 

2.3.4. Investment in subsidiaries

 

2.3.5. Investments in associates/share of associates

 

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

 

2.3.7. Other

 

2.3.8. Total asset revaluation reserve

 

2.4. Foreign currency translation reserve

 

2.5. Fair value through OCI reserve

 

2.5.1. Marketable securities

 

2.5.2. Other

 

2.6. Cash flow hedge reserve

 

2.7. Share based payments reserve

 

2.8. Other reserves

 

2.9. Total reserves

 

 

 

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

 

 

 

4. Total shareholders' equity

 


Reporting Form ARF 323.0

Statement of Financial Position (Licensed ADI)

Instruction Guide

This form relates to the operations of an authorised deposit-taking institution (ADI). If an ADI has subsidiaries or interest in joint venture operations, the ADI must also complete ARF 322.0 Statement of Financial Position (Consolidated) (ARF 322.0).

General directions and notes

Reporting entity

ARF 323.0 Statement of Financial Position (Licensed ADI) should be completed by Credit Unions, Building Societies, Cairns Penny Savings & Loans Limited on a Licensed ADI basis.

Licensed ADI

This refers to the operations of the reporting ADI on a stand-alone basis.

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). The completed form must be submitted 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

The form is to be completed 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 (AASB 132). 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 AASB 7 and AASB 132 and any relevant prudential standards.

Term to maturity

Any references to ‘term to maturity’ in this form 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.

If additional clarification is required for specific asset, liability or equity items in this form, reference should be made to the section ‘Specific instructions’, which is provided as a guide.

Specific instructions

Section A: Assets

1. Cash and liquid assets

Generally include the following in this category:

·               Australian notes and coins;

·               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 the following from this reporting category:

·               bills of exchange (reported as either Securities held for trading or Securities not held for trading); and

·               bills receivable and remittances in transit.

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

1.2.1 ADIs

Include:

·               all deposits with Australian resident ADIs that are available on demand.  Report 11am accounts and 24-hour money.

Exclude:

·               exchange settlement accounts.

1.2.2 Registered Financial Corporations (RFCs)

Include:

·               all deposits with RFCs that are available on demand.  Report 11am accounts and 24-hour money.

Exclude:

·               exchange settlement accounts.

1.2.3 Other financial institutions

Include:

·               all deposits with other financial institutions 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 such as the Australian Stock Exchange Clearing House (ASXCH) and Sydney Futures Exchange Clearing House (SFECH) in Australia.

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 banks and non-bank financial institutions;

·               amounts owing from ADIs and other financial institutions in relation to the payments system;

·               items in the course of collection from ADIs and other financial institutions in relation to the payments system;

·               amounts due to the reporting entity in relation to an involvement in an overseas payment system;

·               securities sold not delivered/security settlements - record receivables for unsettled sales of securities. This item arises only if the reporting institution record securities on a settlement date basis as opposed to trade date basis; and

·               margin deposit accounts with brokers.

Exclude:

·               Certificates of deposit. 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, unless a legal right of set-off exists in accordance with AASB 9, AASB 132 and AASB 7.

·               Deposits that are not on a call basis (e.g. deposits lodged at term that are not on a call basis).

1.6.1 Due from the Reserve Bank of Australia (RBA)

Include:

·               settlement account balances due from the RBA and other central banks, as well as securities sold not delivered/security settlements; and

·               funds held with the RBA or any foreign central bank.

1.6.2 Due from ADIs

Include:

·               settlement account balances due from ADIs, as well as securities sold not delivered/security settlements.

1.6.3 Due from RFCs

Include:

·               settlement account balances due from RFCs, as well as securities sold not delivered/security settlements.

1.6.4 Due from other financial institutions

Include:

·               settlement account balances due from other financial institutions, as well as securities sold not delivered/security settlements.

1.7 Total cash and liquid assets

Sum all cash and liquid assets reporting items above.

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 ARF 330.0 Statement of Financial Performance (ARF 330.0) 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 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.

All securities borrowed or purchased under resale agreements should be excluded.  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’.

Include holdings of debt securities issued by the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity.

Debt securities

Include:

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

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 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).

2.4 Corporate paper

Include:

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

2.5 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.

2.6 Other debt securities

2.7 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.

2.8 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).

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.

All securities borrowed or purchased under resale agreements should be excluded.  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’.

Include holdings of debt securities issued by the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity.

Debt securities

Include:

·               all debt securities, consistent with the classification and measurement basis used for Securities not held for trading by institutions.

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 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).

3.4 Corporate paper

Include:

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

3.5 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.

3.6 Other debt securities

Equity securities

Include:

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

3.7 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’.

3.8 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’.

3.9 Other equity securities

Record the holding of equity securities issued by corporations other than ADIs and insurance corporations that are held in 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 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. Acceptances of customers

Total acceptances of customers – Net

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

Loans and advances are investments of the ADI and 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;

·               subordinated loans; and

·               loans to controlled entities, associates and joint ventures.

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 (IFRS)[3] are to be treated as specific provisions in the reporting forms for regulatory reporting purposes (Prudential Standard 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 provisions and General Reserve for Credit Losses can be disclosed in aggregate.

Do not include associated deferred tax assets (DTA) in the amounts reported for in General Reserve for Credit Losses or specific provisions.  Include associated DTA in 'Other Assets – Deferred tax asset - From specific provisions and general reserve for credit losses'.

6.1 Loans to households

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

Exclude:

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

6.1.1.1 Housing: Owner-occupied – Balance outstanding (1)

Include:

·                the value of housing loans to Australian householders, 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.

6.1.1.1 Housing: Owner-occupied – Specific provisions (2)

Report the specific provision for doubtful debts applied to this loan item. Where an ADI adopts a standardised approach under APS 220, the value of the prescribed provision should also be included here.

6.1.1.1 Housing: Owner-occupied – 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.

6.1.1.1.1 Housing: owner-occupied – Of which revolving credit secured by residential mortgage – Balance outstanding (1)

Of the total reported for ‘Housing: Owner-occupied’ identify the component that is revolving credit facilities secured by residential mortgage.

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

6.1.1.2 Housing: Investment – Balance outstanding (1)

Include:

·               the value of investment housing loans to Australian householders, for the construction or purchase of dwellings for non-owner occupation; and

·               revolving credit or redraw facilities originally approved for a purpose of predominantly investment housing.

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

6.1.1.2 Housing: Investment – Specific provisions (2)

Report the specific provisions applied to this loan item. Where an ADI adopts a standardised approach under APS 220, the value of the prescribed provision should also be included here.

6.1.1.2 Housing: Investment – 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.

6.1.1.2.1 Housing: Investment – Of which revolving credit secured by residential mortgage – Balance outstanding (1)

Of the total reported for ‘Housing: Investment’ identify the component that is revolving credit facilities secured by residential mortgage.

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

 6.1.2 Revolving credit – Balance outstanding (1)

Include:

·               the gross value of loans of a revolving credit nature to Australian householders, other than credit cards, or loans originally approved 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.

6.1.2 Revolving credit – Specific provisions (2)

Report the specific provision for doubtful debts applied to this loan item, if this is recorded or allocated by the institution on this basis. Where an ADI adopts a standardised approach under APS 220, the value of the prescribed provision should also be included here.

6.1.2 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.

6.1.2.1 Revolving credit – of which revolving credit secured by residential mortgage – Balance outstanding (1)

Of the total reported for ‘Revolving credit’, identify the component that is revolving credit facilities secured by residential mortgage originally approved for a purpose other than housing.

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

6.1.3 Credit cards – Balance outstanding (1)

Include:

·               the gross value of credit card liabilities of Australian householders.

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

6.1.3 Credit cards – Specific provisions (2)

Report the specific provisions applied to this loan item, if this is recorded or allocated by the institution on this basis. Where an ADI adopts a standardised approach under APS 220, the value of the prescribed provision should also be included here.

6.1.3 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.

6.1.4 Leasing – Balance outstanding (1)

Include:

·               the gross value of lease financing to Australian householders.

This reporting item should be reported net of unearned revenue and gross of specific provision for doubtful debts.

6.1.4 Leasing – Specific provisions (2)

Report the specific provisions applied to this loan item, if this is recorded or allocated by the institution on this basis. Where an ADI adopts a standardised approach under APS 220, the value of the prescribed provision should also be included here.

6.1.4 Leasing – General Reserve for Credit Losses (3)

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

6.1.5 Other personal term loans – Balance outstanding (1)

Include:

·               the gross value of personal term loans to Australian householders 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.

6.1.5 Other personal term loans – Specific provisions (2)

Report the specific provisions applied to this loan item, if this is recorded or allocated by the institution on this basis. Where an ADI adopts a standardised approach under APS 220, the value of the prescribed provision should also be included here.

6.1.5 Other personal term loans – 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.

6.1.5.1 Other personal term loans of which fixed interest rate – Balance outstanding (1)

Of the total reported for ‘Other personal term loans’ identify the component that has a fixed interest rate. 

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

6.1.5.1 Other personal term loans of which fixed interest rate – Specific provisions (2)

Report the specific provision for doubtful debts applied to this loan item, if this is recorded or allocated by the institution on this basis. Where an ADI adopts a standardised approach under APS 220, the value of the prescribed provision should also be included here.

6.1.5.1 Other personal term loans of which fixed interest rate – 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.

6.1.5.2 Other personal term loans of which variable interest rate – Balance outstanding (1)

Of the total reported for ‘Other personal term loans’ identify the component that has a variable interest rate. 

Include:

·               the gross value of variable rate term loans to Australian householders 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.

6.1.5.2 Other personal term loans of which variable rate – Specific provisions (2)

Report the specific provisions applied to this loan item, if this is recorded or allocated by the institution on this basis. Where an ADI adopts a standardised approach under APS 220, the value of the prescribed provision should also be included here.

6.1.5.2 Other personal term loans of which variable rate – 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.

6.1.6 Total loans to households – Balance outstanding (1)

Sum the gross value of loans to Australian householders.

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

6.1.6 Total loans to households – Specific provisions (2)

Report the specific provisions applying to loans to Australian householders. Where an ADI adopts a standardised approach under APS 220, the value of the prescribed provision should also be included here.

6.1.6 Total loans to households – General Reserve for Credit Losses (3)

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

6.2 Commercial lending

6.2.1 Loans to private and public trading corporations

Private trading corporations

Private trading corporations are those owned and controlled by the private sector.

Include:

·               all resident private corporate trading enterprises;

·               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.

Public non-financial corporations

Commonwealth, state, territory and local government

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

Include:

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

Exclude:

·               government departments (show as Commonwealth general government);

·               government-owned financial institutions (these are classified as financial institutions);

·               state government owned financial institutions and entities in the general government; and

·               state and territory central borrowing authorities.

 6.2.1 Loans to public and private trading corporations – Balance outstanding (1)

Include:

·               the gross value of loans to Australian private trading corporations that are denominated in Australian dollars. 

6.2.1 Loans to public and private trading corporations – Specific provisions (2)

Report the specific provisions applied to this loan item. Where an ADI adopts a standardised approach under APS 220, the value of the prescribed provision should also be included here.

6.2.1 Loans to public and private trading corporations – General Reserve for Credit Losses (3)

Report the General Reserve for Credit Losses applied to this loan item.

6.2.2 Loans to private unincorporated businesses and CSOs

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.

Community service organisations (CSOs)

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:

·               CSOs and non-profit institutions controlled and mainly financed by government (include in general government).

6.2.2 Loans to unincorporated business and CSOs – Balance outstanding (1)

Include:

·               the total gross value of loans to Australian CSOs and unincorporated businesses. 

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

6.2.2 Loans to unincorporated business and CSOs – Specific provisions (2)

Report the specific provisions applied to this loan item. Where an ADI adopts a standardised approach under APS 220, the value of the prescribed provision should also be included here.

6.2.2 Loans to unincorporated business and CSOs – General Reserve for Credit Losses (3)

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

6.2.3 Loans to ADIs and other financial institutions

Include:

·               treasury related short-term lending to other banks;

·               corporate banking customer relationship lending to other financial institutions;

·               loans and advances to other banks;

·               loans with banks and non-bank financial institutions; and

·               loans and advances to the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity that are 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.

Include the following counterparties:

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.

ADIs

ADIs refers to corporations, in relation to which an authority under subsection 9(3) 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).

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 is available on request.

Exclude:

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

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.

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.

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: include in RFCs; and

·               property and trading trusts, include in private trading corporations.

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.

6.2.3 Loans to ADIs and other financial Institutions – Balance outstanding (1)

Include:

·               the gross value of loans to ADIs and other financial institutions. This reporting item should be reported gross of any specific provisions and General Reserve for Credit Losses.

6.2.3 Loans to ADIs and other financial Institutions – Specific provisions (2)

Report the specific provisions applied to this loan item. Where an ADI adopts a standardised approach under APS 220, the value of the prescribed provision should also be included here.

6.2.3 Loans to ADIs and other financial Institutions – General Reserve for Credit Losses (3)

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

6.2.4. Loans to government

All levels of Australian government

Include:

·               overdrafts;

·               secured and unsecured borrowings;

·               financial lease agreements;

·               account balances which do not qualify as deposits;

·               credit card outstanding balances; and

·               term loans.

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

Commonwealth 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:

·               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 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);

·               departments of the ACT and Northern Territory governments (record as State, Territory and local general government); and

·               the RBA and Commonwealth Government financial institutions such as Australian Industry Development Corporation (AIDC) and Export Finance and Insurance Corporation (EFIC) (record as financial institutions as appropriate).

State, Territory and local general government

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:

·               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.

6.2.4 Loans to government – Balance outstanding (1)

Include:

·               the gross value of loans to Australian Commonwealth government. This reporting item should be reported gross of any specific provisions and General Reserve for Credit Losses.

6.2.4 Loans to government – Specific provisions (2)

If applicable sum the specific provisions applying to loans to Australian government bodies. Where an ADI adopts a standardised approach under APS 220, the value of the prescribed provision should also be included here.

6.2.5 Total commercial lending – Balance outstanding (1)

Sum the gross value of commercial lending.

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

6.2.5 Total commercial lending – Specific provisions (2)

Report the aggregate specific provisions applying to commercial lending. Where an ADI adopts a standardised approach under APS 220, the value of the prescribed provision should also be included here.

6.2.5 Total commercial lending – General Reserve for Credit Losses (3)

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

6.2.5.1 Total commercial lending of which: Revolving credit

Include:

·               the gross value of loans of a revolving credit nature. Exclude loans to Australian householders, for the purpose of housing.

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.

6.2.5.2 Total commercial lending of which: Credit cards

Include:

·               the gross value of credit card liabilities by Australian counterparties.

6.2.5.3 Total commercial lending of which: Term loans – Fixed rate

Include:

·               the gross value of term loans that have a fixed interest rate. Exclude loans to householders for the purpose of housing.

6.2.5.4 Total commercial lending of which: Term loans – variable rate

Include:

·               the gross value of term loans that have a variable interest rate. Exclude loans to householders for the purpose of housing.

6.2.5.5 Total commercial lending of which: Leasing

Include:

·               the gross value of lease financing to counterparties.

This reporting item should be reported net of unearned revenue and gross of specific provision for doubtful debts.

6.2.5.6 Total commercial lending of which: Other loans

Include:

·               the gross value of loans to counterparties other than revolving credit loans; credit cards; housing loans; term loans; and leasing finance.

6.3 Total gross loans and advances – Balance outstanding (1)

Sum the gross value of loans and advances (to households and Commercial Lending).

6.3 Total gross loans and advances – Specific provision (2)

Record the specific provisions applying to the total loan portfolio. Where an ADI adopts a standardised approach under APS 220, the value of the prescribed provision should also be included here.

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

Record the General Reserve for Credit Losses applying to the total loan portfolio.

6.3.1 Total gross loans and advances of which: Margin lending

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

6.3.2 Total gross loans and advances of which: Loans held at fair value

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

6.4 Less: Deferred fee income

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

6.5 Loans and advances (net of specific provision, General Reserve for Credit Losses and deferred fee income)

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

7. Other Investments

7.1 Parent entity

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

7.2 Controlled entities

Report the total amount of equity investments in controlled entities defined in accordance with AASB 127 and AASB 3.

7.3 Associates

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

7.4 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.

7.5 Joint ventures

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

7.6 Other

Report any other investments not included above.

7.7 Total other investments

Sum all reporting line items for ‘Other investments’.

8. 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 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’.

8.1 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).

8.2 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.

8.3 Accumulated depreciation/impairment - Property, plant and equipment

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

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

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

8.5 Information technology

Separately identify computer equipment and software. However when computer equipment and software is treated as an intangible for accounting purposes (for example, in audited financial statements) it must be reported as part of intangible assets for prudential purposes and in this form.

8.6 Accumulated depreciation/impairment - Information technology

Report total depreciation and impairment for all Information technology items here.

8.7 Total information technology net of accumulated depreciation/impairment

Deduct ‘Accumulated depreciation / impairment – Information technology’ from the gross values for ‘Information technology’.

8.8 Other

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

8.9 Accumulated depreciation/impairment - Other

Report total depreciation and impairment for all ‘Other’ items.

8.10 Accumulated depreciation/amortisation

Report total depreciation and amortisation for all ‘Fixed assets’ items.

8.11 Net fixed assets 

Deduct ‘Accumulated depreciation/amortisation’ from the gross values for ‘Property, plant and equipment’, ‘Information technology’ and ‘Other’.

9. 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.

9.1 Intangible assets with a finite life

Include:

·               total intangible assets with a finite life.

9.2 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.

9.3 Net Intangible assets with a finite life

Subtract the ‘Accumulated amortisation’ from the ‘Intangible assets with a finite life’.

9.4 Intangible assets with an infinite life

Include:

·               total intangible assets with an infinite life.

9.5 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.

9.6 Net intangible assets with an infinite life

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

9.7 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.

9.8 Impairment

Include:

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

9.9 Net goodwill

Include:

·               the net amount of goodwill after impairment.

9.10 Net intangible assets 

Deduct ‘Accumulated amortisation’ and ‘Impairment’ from the gross values for ‘Intangible assets with a finite life’, ‘Intangible asset with an infinite life’ and ‘Goodwill’.

10. Other assets

10.1 Interest receivable

Include:

·               interest accrued for but not yet received.

10.2 Capitalised debt raising/funding costs

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

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

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

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

Report origination fees and commissions deferred.

10.5 Other capitalised expenses of a general nature

Report any other capitalised expenses not reported above.

10.6 Derivative financial instruments

Include:

·               all derivatives 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).

10.7 DTA

Recognition of DTA are to be made in accordance with AASB 112 Income Taxes (AASB 112).

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

10.7.1 From tax losses

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

10.7.2 From specific provision and General Reserve for Credit Losses

Report all DTA associated with specific provision and General Reserve for Credit Losses.

10.7.3 Other

Report all deferred tax assets other than from tax losses, specific provision and General Reserve for Credit Losses.

10.8 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.

10.9 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).

10.10 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).

10.11 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.

10.12 Other

Include all other assets not separately identified above.

Include:

·               commodities other than gold bullion;

·               valuables;

·               artwork;

·               other receivables (commissions and fees); and

·               prepayments.

Exclude:

·               deposits, loans and other claims on related parties of the reporting entity, including claims on the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity.  These claims should be reported to the relevant item above.

10.13 Total other assets

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

11. Total assets

Sum all assets.

11.1.1 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 included where appropriate.

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

11.1.2 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 included where appropriate.

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

11.1.3 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 included where appropriate.

11.2.1 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 included where appropriate.

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

11.2.2 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 included where appropriate.

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

11.2.3 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 included where appropriate.

12. Memo items

12.1 Outstanding principal balance of securitised assets

Report and provide a break-up of the outstanding principle balance of all loans and other assets that have been sold to or originated into a SPV by or on behalf of the ADI or by a third party to a SPV sponsored by the ADI (e.g. warehouse trust).  Do not include in these amounts any assets reported in ‘Total assets’ above.

Include loans to:

·               households;

·               CSOs/non-profit institutions serving households;

·               non-financial corporations;

·               life insurance corporations;

·               pension funds;

·               other insurance corporations; and

·               other financial institutions (as defined in ‘Other Definitions’ above).

Exclude loans to:

·               general government;

·               RBA;

·               ADIs;

·               RFCs; and

·               central borrowing authorities.

Also exclude any securitised intra-group loans.

12.2 Credit card chargebacks paid to card issuers during the reporting period

Section B: Liabilities

1. Due to clearing houses

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

2. Due to financial institutions

Include:

·               settlement account balances – Austraclear, and RITS balances with ADIs and other financial institutions;

·               amounts owing to ADIs and other financial institutions in relation to the payments system;

·               items in the course of collection – due to ADIs and other financial institutions in relation to the payments system;

·               amounts due in relation to an involvement in an overseas payments system;

·               securities purchased not delivered/security settlements – record payables for unsettled purchases of securities only with financial institutions here. This item only arises if securities are recorded on a settlement date basis as opposed to a trade date basis; and

·               Vostro balances from ADIs and other 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.

2.1 Due to RBA or central banks

Include:

·               settlement account balances due to the RBA. Funds borrowed from the RBA should also be reported in this data item.

2.2 Due to ADIs

Include:

·               settlement account balances due to ADIs.

2.3 Due to RFCs

Include:

·               settlement account balances due to RFCs.

2.4 Due to other financial institutions

Include:

·               settlement account balances due to other financial institutions.

2.5 Total due to financial institutions

Sum the reporting items for amounts due to Australian resident financial institutions.

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

4.1.1 Deposits: Call/on demand: Transaction accounts

Transaction accounts 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).

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.

4.1.1.1 Deposits: Call/on demand: Transaction accounts – Households/retail

The term households/retail is to be interpreted in the same way as for loans and advances.

4.1.1.2 Deposits: Call/on demand: Transaction accounts – Other

Include:

·               all other transaction call deposit accounts from other parties that are not classified as being from households or from ADIs; and

·               $A equivalent of foreign currency deposits.

4.1.2 Deposits: Call/on demand: Non-transaction accounts

Non-transaction accounts include the following:

NOW, Savings and other accounts without any transaction facilities attached (cheque, Electronic Funds Transfer at Point of Sale (EFTPOS), ATM).

Include:

·               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:

·               accounts with transaction facilities e.g. cheque book facilities, EFTPOS facilities, ATM;

·               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.

4.1.2.1 Deposits: Call/on demand: Non-transaction accounts – Households/retail

The term households/retail is to be interpreted in the same way as for loans and advances.

4.1.2.2 Deposits: Call/on demand: Non-transaction accounts – Other

Include:

·               all other non-transaction deposit call accounts from other parties that are not classified as being from households.

4.2 Term deposits

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

4.2.1 Term deposits – Households/retail

The term households/retail is to be interpreted in the same way as for loans and advances.

4.2.2 Term deposits – Other

Include:

·               all other term deposit accounts from other parties that are not classified as being from households.

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: Retirement saving accounts (RSAs)

RSAs are low risk/low return capital guaranteed products subject to the same restrictions as other superannuation products. Only an approved deposit taking institution, life insurance company or a prescribed financial institution can be approved as an RSA. Some superannuation funds offer RSA lookalike products, but RSA's themselves are specifically approved non-trustee institutions.

4.5 Deposits: Other

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

4.6 Total deposits

Sum the total of ‘Transaction’, ‘Non-transaction’, ‘Term deposits’, ‘Certificates of deposit’, ‘Retirement saving accounts’ 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 consistent with Australian accounting standard 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 debt’.

5.3 Other short-term debt securities

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’.

5.4.1 Short-term loans from ADIs - Variable

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

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

Settlement account balances due to other banks should be separately identified and reported as ‘Due to financial institutions: ADIs’.

5.4.2 Short-term loans from ADIs - Fixed

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

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

Settlement account balances due to other banks should be separately identified and reported as ‘Due to financial institutions: ADIs’.

5.5.1 Short-term loans: Other - Variable

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

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’.

5.5.2 Short-term loans: Other - Fixed

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

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’.

5.6 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 Restructuring costs

Report all provisions raised for the restructuring of an organisation.

Include:

·               severance, termination and redundancy payments; and

·               integration costs.

7.5 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.

7.6 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:

·               bonds;

·               debentures;

·               unsecured notes;

·               fixed-interest securities;

·               medium-term notes;

·               inflation-indexed bonds;

·               floating-rate notes;

·               other floating-rate debt securities;

·               mortgage-backed bonds;

·               asset-backed bonds;

·               Euro notes;

·               Euro bonds;

·               Euro medium-term notes;

·               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); and

·               subordinated bonds and 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;

·               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.

8.2 Loans

Report the face value of all loans and borrowings 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 the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity.

Exclude:

·               loan capital (e.g. subordinated loans);

·               short-term loans due to the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity; and

·               treasury related short-term borrowings from other banks.

8.2.1 Long-term 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.

8.2.2 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.

8.3 Total bonds, notes and long-term borrowings

Sum the total face value of all ‘Bonds, notes and long-term borrowings’.

9. Creditors and other liabilities

9.1 - 9.2 Defined benefit liabilities

Include:

·               defined benefit liabilities i.e. deficit, 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).

9.3 Interest payable

Include:

·               interest accrued for but not yet paid.

9.4 Unearned interest

Include:

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

9.5 Derivative financial instruments

Include:

·               all derivatives 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.

9.6 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.

9.7 Due to merchants

9.8 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.

9.9 Share capital repayable on demand

Include:

·               members’ shares in co-operatives classified as liabilities consistent with AASB 132 and AASB 7.

9.10 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.

Exclude:

·               deposits, loans and other liabilities to related parties of the reporting entity, including liabilities to the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity.  These liabilities should be reported to the relevant item above.

9.11 Total creditors and other liabilities

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

10. Loan capital and hybrid securities

Report the face value of all loan capital and hybrid securities that 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.

10.1 Members withdrawable shares

Include the value of credit union member withdrawable shares.  This item should be prepared in accordance with the APRA prudential treatment and not applicable accounting standards.  For prudential purposes, a credit union 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.

10.2 Loan capital

As a guide include:

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

10.3 Hybrid securities

As a guide include:

·               converting preference shares; and

·               convertible notes.

10.4 Total loan capital and hybrid securities

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

11. Total liabilities

Sum all liabilities.

11.1.1 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 loan/debt security that ranks below other debts should a company be wound up. This includes all debt securities both short and long-term.

11.1.2 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 loan/debt security that ranks above other debts should a company be wound up. This includes all debt securities both short and long-term.

11.1.3 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.

11.2.1 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 loan/debt security that ranks below other debts should a company be wound up. This includes all debt securities both short and long-term.

11.2.2 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 loan/debt security that ranks above other debts should a company be wound up. This includes all debt securities both short and long-term.

11.2.3 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.

11.3 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 loan/debt security that ranks above other debts should a company be wound up. This includes all debt securities both short and long-term.

12. 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

Total all ‘Share capital’ items listed above.

2. Reserves

2.1 General reserves

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

Exclude from General Reserves 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 ARR – Owner-occupied property

Include:

·               the balance of the ARR relating to the revaluation of owner-occupied property.

2.3.2 ARR – Plant and equipment

Include:

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

2.3.3 ARR - Intangibles revaluation surplus

Include:

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

2.3.4 ARR – Investment in subsidiaries

Include:

·               the balance of the ARR relating to the revaluation of investment in subsidiaries.

2.3.5 ARR – Investments in associates/share of associates

Include:

·               the balance of the ARR relating to the revaluation of investments in associates.

2.3.6 ARR – 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.

2.3.7 ARR - Other

ARR relating to the revaluation of other assets.

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 Fair Value Through OCI reserve – 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 7.

2.5.2 Fair Value Through OCI reserve – 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 or accumulated losses at the end of the period

4. 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.