Financial Sector (Collection of Data) (reporting standard) determination No. 36 of 2018

Reporting Standard RRS 320.0 Statement of Financial Position

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. 55 of 2008, including Reporting Standard RRS 320.0 Statement of Financial Position made under that Determination; and

(b)   DETERMINE Reporting Standard RRS 320.0 Statement of Financial Position, 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 April 2018.

This instrument commences on 1 April 2018.

Dated: 21 March 2018

[Signed]

Alison Bliss

General Manager

Data Analytics 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 RRS 320.0 Statement of Financial Position comprises the document commencing on the following page.

Reporting Standard RRS 320.0

Statement of Financial Position

Authority

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

Purpose

2.             Data collected in Reporting Form RRF 320.0 Statement of Financial Position (RRF 320.0) 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 those registered entities outlined in paragraph 5.

4.             This Reporting Standard commences on 1 April 2018.

Information required

5.             Subject to paragraph 6, a registered entity must provide APRA with the information required by RRF 320.0 in respect of a reporting period if, at the end of the most recent complete financial year for the registered entity, it:

(a)          had total assets of $50 million or more;[3] or

(b)          was one of a number of registered entities that, during the reporting period, were:

(i)            of the same category as the first-mentioned registered entity; and

(ii)         related bodies corporate of each other

and, at the end of the most recent complete financial year for the first-mentioned registered entity, had combined total assets of $50 million or more.

6.             However, a registered entity is not required to report in respect of a particular reporting period if another registered entity has reported under this Reporting Standard in respect of that reporting period, and that other entity is both:

(a)          a related body corporate of the first-mentioned registered entity; and

(b)          of the same category as the first-mentioned registered entity.

Example of the application of paragraphs 5 and 6: RE1 Ltd is a registered entity. Under section 11 of the Financial Sector Collection of Data Act it has been allocated to the category of ‘money market corporation’. At the end of the most recent complete financial year, it had assets of $40 million. RE2 Pty Ltd is a subsidiary, and therefore a related body corporate, of RE1. It is also a money market corporation. At the end of the most recent complete financial year, it had assets of $20 million. For the purposes of the test in paragraph 5(b), their respective total assets are added together, producing a total of $60 million. This exceeds the $50 million test in paragraph 5(b). Having regard to paragraph 6, one of the two companies is required to report to APRA under this Reporting Standard in respect of the reporting period (assuming there are no other money market corporations in the group that have reported to APRA in respect of that reporting period).

Form and method of submission

7.             The information required by this Reporting Standard must be given to APRA either:

(a)          in electronic format, using one of the electronic submission mechanisms provided by the 'Direct to APRA' application or by a method notified by APRA, in writing, prior to submission; or

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

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

Reporting periods and due dates

8.             Subject to paragraph 9, a registered entity to which this Reporting Standard applies must provide the information required by this Reporting Standard for each calendar month.

9.             APRA may, by notice in writing to a particular registered entity, vary the timing of a reporting period for the registered entity or vary the duration of a reporting period for the registered entity.

10.         The information required by this Reporting Standard must be provided to APRA within 10 business days after the end of the reporting period to which it relates.

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

Quality control

12.         All information provided by a registered entity under this Reporting Standard must be subject to processes and controls developed by the registered entity 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 of a registered entity submits information under this Reporting Standard using the D2A application, or other method notified by APRA, it will be necessary for the officer to digitally sign the relevant information using a digital certificate acceptable to APRA.

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

(a)          the Principal Executive Officer of the registered entity; or

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

Minor alterations to forms and instructions

15.         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 clarify their application to the form

without changing any substantive requirement in the form or instructions.

16.         If APRA makes such a variation it must notify in writing each registered entity that is required to report under this Reporting Standard.

Interpretation

17.         In this Reporting Standard:

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

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

category means a category to which a registered entity has been allocated under section 11 of the Financial Sector (Collection of Data) Act 2001.

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

registered entity has the meaning given in the Financial Sector (Collection of Data) Act 2001 (that is, a corporation whose name is entered in the Register of Entities kept by APRA under section 8 of that Act).

Note: references to registered financial corporations in the forms and instructions that form part of this Reporting Standard are taken to have the same meaning as registered entity.

related body corporate has the meaning given in section 50 of the Corporations Act 2001.

reporting period means a period defined in paragraph 8 or, if applicable, paragraph 9.

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

Reporting Form RRF 320.0

Statement of Financial Position

Instruction Guide

General directions and notes

All Registered Financial Corporations (RFCs) that have total assets equal to or greater than $50 million, after consolidating all RFCs of the same category in a group of related bodies corporate (e.g. two or more money market corporations in the same group) on a Domestic books basis are required to file this return monthly. Consolidated reporting is preferred, but arrangements may be negotiated for less consolidated reporting.

Reporting entity

Reporting Form RRF 320.0 Statement of Financial Position (RRF 320.0) is to be completed by all RFCs on a Domestic books basis.

The Domestic books of the registered entity relates to the Australian books of the Australian entity and has the following scope:

• do not consolidate Australian and offshore controlled entities or associated entities that are not required to complete this form;
• exclude offshore branches of the Australian registered entity from this reporting unit;
• report the Australian consolidated entity’s operations/transactions that are booked inside Australia; and
• include transactions with non-residents recorded on Australian books.  These are recorded separately in foreign assets and liabilities issued to non-residents.

Securitisation deconsolidation principle

Where an RFC 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 RFC’s reported amounts in APRA’s regulatory reporting returns.

Where an RFC participates in a securitisation that does not meet APRA’s operational requirements for regulatory capital relief under APS 120, such exposures are to be reported as on-balance sheet assets in APRA’s regulatory reporting returns. 

Reporting period and timeframes for lodgement

The form is to be completed as at the last business day of the month.  All RFCs should submit the completed form to APRA within 10 business days of the end of the relevant month.

Unit of measurement

All RFCs are asked to complete the form in thousands of Australian dollars rounded to the nearest whole number (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;[4]
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; and[5]
3. foreign currency non-monetary items that are measured at fair value will be translated at the exchange rate at the date when fair value was determined.

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

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

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

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

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

Netting

Institutions are to comply with the prerequisite for netting outlined in Australian accounting standards AASB 139, AASB 7 Financial Instruments: Disclosures (AASB 7) and AASB 132 Financial Instruments: Disclosure and Presentation (AASB 132).

Term to maturity

Any references to term to maturity in this form refer to residual term to maturity.

Basis of preparation

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

Sector definitions

Households

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

Exclude:

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

Community service organisations (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.

Non-financial corporations

Private non-financial corporations

Private trading corporations

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

Include:

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

Exclude:

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

Private unincorporated businesses

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

Public non-financial corporations

Commonwealth Government

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

Include:

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

Exclude:

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

State, Territory and local government

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

Include:

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

Exclude:

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

General Government

Commonwealth General Government

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

Include:

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

Exclude:

• government trading enterprises such as Telstra and 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 Reserve Bank of Australia (RBA) of Australia and Commonwealth government financial institutions such as the Australian Industry Development Corporation (AIDC) and the 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.

Financial corporations

RBA

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

Other central bank institutions

This sub-sector includes APRA.

Depository corporations

Banks

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

Include:

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

Exclude:

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

Other ADIs

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

RFCs

RFCs refers to corporations registered under the Financial Sector (Collection of Data) Act 2001 (Cth) that are not licensed to operate in Australia as banks, other authorised depository corporations, life or general insurance corporations, or superannuation funds.

Include:

• money market corporations (also referred to as "merchant banks") (D);
• pastoral finance companies (E);
• non-pastoral finance companies (G, F); and
• cash management trusts.

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

Exclude:

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

Life insurance

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

Include:

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

Exclude:

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

Pension funds

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

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

Include:

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

Exclude:

• retirement savings accounts.

Other insurance corporations

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

Include:

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

Central borrowing authorities (CBAs)

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

Include:

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

Other financial institutions

Financial auxiliaries

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

Include:

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

Financial intermediaries

Securitisers

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

Unit trusts

Include:

• mortgage, fixed interest and equity unit trusts.

Exclude:

• cash management trusts (these are to be included in RFCs); 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.

Resident/non-resident classification

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

Other definitions

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

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

‘Parent entity’, ‘controlled entity’, ‘associated entity’. These terms are defined in accordance with AASB 127 Consolidated and Separate Financial Statements (AASB 127), AASB 3 Business Combinations (AASB 3) and AASB 128 Investments in Associates (AASB 128).

Specific instructions

Section A: Assets

Part 1 - Foreign assets

Report all claims against non-resident institutions, including claims on an overseas parent, subsidiaries, branches or associates. Assign these claims to the following categories:

1. Deposits

Include all deposits with non-residents.  Report transferable deposits (those exchangeable on demand at par without restriction or penalty and are freely transferable by cheque) and other deposits (i.e. claims reflecting evidence of deposit for example, non-transferable savings deposits and time deposits).

2.             Loans

Include financial assets that are created through the lending of funds by a creditor (the Australian reporting entity) to a debtor (non-resident institution) through an arrangement in which the lender receives a non-tradable document or instrument, or no security evidencing a transaction.

3.             Debt securities

Include all debt securities held by the Australian reporting entity and issued by non-residents, which are usually traded (or tradable) in organised or other financial markets.  Include those securities issued by non-resident enterprises and traded on the Australian market.

4.             Equity

Refers to equity held by the Australian reporting entity in non-resident institutions.

5.             Derivative financial instruments

Include all trading and non trading derivatives consistent with the classification and measurement basis used for derivatives by institutions in accordance with AASB 132 and AASB 139.  Derivative financial instruments should be reported at their net fair value in this item when favourable to the reporting entity.  Fair values are obtained from quoted market prices, discounted cash flow models and options pricing models. 

6.             Other

Include the following claims on non-residents: trade credit claims; overdue settlements (or amounts past due and unpaid); miscellaneous accounts receivable and any other claims not classified to the above categories.

Part 2 - Domestic assets

1.             Cash and liquid assets

Generally include:

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

Exclude:

• bills of exchange  (reported as either a Trading Security or Investment Security); 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 Banks

Include all deposits with Australian resident banks that are available on demand. Report 11am accounts and 24-hour money.  Exclude exchange settlement accounts.

1.2.2 Other ADIs

Include all deposits with Australian resident ADIs other than banks that are available on demand.  Report 11am accounts and 24-hour money.  Exclude exchange settlement accounts.

1.2.3 RFCs

Include all deposits with entities subject to the Financial Sector (Collection of Data) Act 2001 and not licensed to operate as banks, other authorised depository institutions, life or general insurance corporations, or superannuation funds that are available on demand.  Report 11am accounts and 24-hour money.  Exclude exchange settlement accounts.

1.2.4 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        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 banks and other financial institutions in relation to the payments system;
• items in the course of collection from banks and other financial institutions in relation to the payments 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 Trading Securities or Investment Securities 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 139, AASB 132 and AASB 7.

1.5.1 Due from RBA

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

Funds held with the RBA or any foreign central bank should also be reported in this data item.

1.5.2 Due from banks

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

1.5.3 Due from other ADIs

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

1.5.4 Due from RFCs

Include settlement account balances due from entities subject to the Financial Sector (Collection of Data) Act 2001 and not licensed to operate as banks, other ADIs, life or general insurance corporations, or superannuation funds, as well as securities sold not delivered/security settlements.

1.5.5 Due from other financial institutions

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

1.6        Total cash and liquid assets

Sum all cash and liquid assets reporting items above.

1.6.1 Total cash and liquid assets of which denominated in foreign currency (AUD equivalent)

Of the total amount reported for cash and liquid assets, identify the component that is denominated in a foreign currency. Report the Australian dollar equivalent of this foreign currency amount.

2.             Trading securities

Trading securities are defined in accordance with AASB 139.  Trading securities are recorded at net fair value, which is defined in accordance with AASB 139. Report short sold positions as a negative asset against the appropriate debt or equity security item.

2.1        Debt securities

Include all debt securities consistent with the classification and measurement basis used for Trading Securities by institutions in accordance with AASB 130 Disclosures in the Financial Statements of Banks and Similar Financial Institutions (AASB 130).

2.2        Equity securities

Include all equity trading securities consistent with the classification and measurement basis used for Trading Securities by institutions in accordance with AASB 130.

2.3        Total trading securities

Sum all “Trading securities” reporting items.

2.3.2 Trading securities of which commercial paper and promissory notes issued by selected non-financial entities

Commercial paper and promissory notes (one-name paper) issued by:

• private trading corporations;
• government non-financial corporations;
• insurance corporations;
• financial auxiliaries and other financial intermediaries; and
• individuals, private unincorporated businesses, and CSOs.

2.3.3 Trading securities of which holdings of own bill acceptances and endorsements by selected non-financial entities

Report the amount of bills of exchange that have been accepted, or accepted and endorsed, and continue to be held by this entity at market value by counterparty of drawer.  Only endorsed bills where this entity is the first endorser of a non-ADI or RFC accepted bill should be included.

Include only these counterparties:

• private trading corporations;
• government non-financial corporations;
• insurance corporations;
• financial auxiliaries and other financial intermediaries; and
• individuals, private unincorporated businesses, and CSOs

Exclude:

• bills of exchange neither accepted nor endorsed.

3.             Investment securities

Investment securities are those securities, which are not Trading Securities.  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).

Include:

• strategic investment in the equity securities of entities that are deemed to be "controlled entities", "associated entity" or "joint ventures" and are outside the consolidated reporting unit.  These terms are defined in accordance with AASB 127, AASB 3, AASB 128 and AASB 131 Interests in Joint Ventures.

Investment securities are recorded at cost and adjusted for the amortisation of any premiums and discounts on purchase over the period of maturity.

3.1        Debt securities

Include all debt securities consistent with the classification and measurement basis used for Investment Securities by institutions in accordance with AASB 130 and AASB 7.

3.2        Equity securities

Include all equity securities consistent with the classification used for Investment Securities by institutions in accordance with AASB 130 and AASB 7.

3.2.1 ADIs

Record the holding of equity securities issued by ADIs that are held as Investment Securities.

3.2.2 Insurance corporations

Record the holding of equity securities issued by insurance corporations that are held as Investment Securities.

3.2.3 Other

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

3.3        Total investment securities

Sum all “investment securities” reporting items.

3.3.2 Investment securities of which commercial paper and promissory notes issued by selected non-financial entities

Commercial paper and promissory notes (one-name paper) issued by:

• private trading corporations;
• government non-financial corporations;
• insurance corporations;
• financial auxiliaries and other financial intermediaries; and
• individuals, private unincorporated businesses, and CSOs.

3.3.3 Investment securities of which holdings of own bill acceptances and endorsements

Report the amount of bills of exchange that have been accepted, or accepted and endorsed, and continue to be held by this entity at market value by counterparty of drawer.  Only endorsed bills where this entity is the first endorser of a non-ADI or RFC accepted bill should be included.

Include only these counterparties:

• private trading corporations;
• government non-financial corporations;
• insurance corporations;
• financial auxiliaries and other financial intermediaries; and
• individuals, private unincorporated businesses, and CSOs.

Exclude:

• bills of exchange neither accepted nor endorsed.

4.             Acceptances of customers

4.1        Total acceptances of customers - Net

Acceptances comprise undertakings by a RFC to pay bills of exchange drawn on customers. These bills of exchange are not held as part of the RFC’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 RFC’s claim against each drawer of the bills of exchange.

Bills of exchange that have been accepted and held in a RFC’s asset portfolio can be included in the Statement of Financial Position under either Trading Securities or Investment Securities.

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

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

5.             Loans and advances

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

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 should be brought to account at the gross value of the outstanding balance.

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

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

Note: Specific provision and collective provision for products and counterparties where indicated in the form are to be reported only if the data is already recorded and allocated on that basis by the institution.  Otherwise the specific provision and collective provision can be disclosed in aggregate.  The specific provision and collective provision is a prudential classification determined in accordance with prudential standards.

5.1        Loans to households and persons

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.

5.1.1.1          (1) Housing: Owner-occupied – Gross of specific provisions and collective provision

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 collective provisions.

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

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

5.1.1.1          (3) Housing: Owner-occupied – Collective provision

Report the collective provision applied to this loan item if this is recorded or allocated by the institution on this basis.

5.1.1.1.1        (1) Housing: Owner-occupied – Of which revolving credit secured by residential mortgage – Gross of specific provisions and collective provision

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 collective provision.

5.1.1.2         (1) Housing: Investment – Gross of specific provisions and collective provision

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 collective provision.

5.1.1.2          (2) Housing: Investment – Specific provisions

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

5.1.1.2          (3) Housing: Investment – Collective provision

Report the collective provision for this reporting line, if this is recorded or allocated by the institution on this basis.

5.1.1.2.1        (1) Housing: Investment – Of which revolving credit secured by residential mortgage – Gross of specific provisions and collective provision

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 collective provision.

5.1.1.3          (2) Total housing – Specific provisions

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

5.1.1.3          (3) Total housing – Collective provision

Report the collective provision for this reporting line, if this is recorded or allocated by the institution on this basis.

5.1.1.3.1        (1) Total housing loans of which fixed interest rate – Gross of specific provisions and collective provision

Of the total reported for “Housing loans” identify the component that has a fixed interest rate.  This reporting item should be reported gross of any specific provisions and collective provision.

5.1.1.3.2        (1) Total housing loans of which variable interest rate – Gross of specific provisions and collective provision

Of the total reported for “Housing loans” identify the component that has a variable interest rate.  This reporting item should be reported gross of any specific provisions and collective provision.

5.1.2 (1) Revolving credit – Gross of specific provisions and collective provision

Include the gross value of loans of a revolving credit nature to Australian householders, which were 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 collective provision.

5.1.2 (2) Revolving credit – Specific provisions

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

5.1.2 (3) Revolving credit – Collective provision

Report the collective provision for this reporting line if this is recorded or allocated by the institution on this basis.

5.1.2.1          (1) Revolving credit – Of which revolving credit secured by residential mortgage – Gross of specific provisions and collective provision

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 collective provision.

5.1.2.2          (1) Revolving credit – Of which credit cards – Gross of specific provisions and collective provision

Include the gross value of credit card liabilities of Australian householders.  This reporting item should be reported gross of any specific provisions and collective provision.

5.1.2.2          (2) Revolving credit – Of which credit cards – Specific provisions

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

5.1.2.2          (3) Revolving Credit – Of which credit cards – Collective provision

Report the collective provision for this reporting line if this is recorded or allocated by the institution on this basis.

5.1.2.3          (1) Revolving credit – Of which margin lending – Gross of specific provisions and collective provision

Of the total reported for “Revolving credit”, identify the component that is revolving credit facilities for the purpose of purchasing equities, where the underlying security is equities.  This reporting item should be reported gross of any specific provisions and collective provision.

5.1.2.3          (2) Revolving Credit – Of which margin lending – Specific provisions

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

5.1.2.3          (3) Revolving Credit – Of which margin lending – Collective provision

Report the collective provision for this reporting line if this is recorded or allocated by the institution on this basis.

5.1.3 (1) Leasing - Gross of specific provisions and collective provision

Include the gross value of lease financing to Australian householders.  This reporting item should be reported net of unearned revenue and gross of specific provisions.

5.1.3 (2) Leasing – Specific provisions

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

5.1.3 (3) Leasing – Collective provision

Report the collective provision for this reporting line if this is recorded or allocated by the institution on this basis.

5.1.4 (1) Other personal term loans – Gross of specific provisions and collective provision

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 collective provision.

5.1.4 (2) Other personal term loans – Specific provisions

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

5.1.4 (3) Other personal term loans – Collective provision

Report the collective provision for this reporting line if this is recorded or allocated by the institution on this basis.

5.1.4.1          (1) Other personal term loans – Of which fixed interest rate – Gross of specific provisions and collective provision

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 collective provision.

5.1.4.2          (1) Other personal term loans – Of which variable interest rate – Gross of specific provisions and collective provision

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.

Of the total reported for “Other personal term loans” identify the component that has a variable interest rate.  This reporting item should be reported gross of any specific provisions and collective provision.

5.1.5 (1) Total loans to households and persons – Gross of specific provisions and collective provision

Sum the gross value of loans to Australian householders.  This reporting item should be reported gross of any specific provisions and collective provision.

5.1.5 (2) Total loans to households and persons – Specific provisions

Report the specific provisions debts applied to this loan item.

5.1.5 (3) Total loans to households and persons – Collective provision

Report the collective provision for this reporting line.

5.2        Commercial lending to residents

5.2.1 (1) Loans to private trading corporations – Gross of specific provisions and collective provision

Include the gross value of loans to Australian private trading corporations.

5.2.1 (2) Loans to private trading corporations – Specific provisions

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

5.2.1 (3) Loans to private trading corporations – Collective provision

Report the collective provision for this reporting line if this is recorded or allocated by the institution on this basis.

5.2.1.1          (1) Loans to private trading corporations: 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 and collective provision.

5.2.1.2          (1) Loans to private trading corporations: Credit cards

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

5.2.1.3          (1) Loans to private trading corporations: Term loans

Include the gross value of term loans.  Exclude loans to householders for the purpose of housing.

5.2.1.4          (1) Loans to private trading corporations: Leasing

Include the gross value of lease financing to counterparties.

This reporting item should be reported net of unearned revenue and gross of specific provisions.

5.2.1.5          (1) Loans to private trading corporations: FX denominated

Include the gross value of loans that are denominated in currencies other than Australian dollars, converted to AUD using the spot exchange rate effective as at the reporting date.

5.2.2 (1) Loans to public non-financial corporations – Gross of specific provisions and collective provision

Include the gross value of loans to Australian public non-financial corporations.

5.2.2 (2) Loans to public non-financial corporations – Specific provisions

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

5.2.2 (3) Loans to public non-financial corporations – Collective provision

Report the collective provision for this reporting line if this is recorded or allocated by the institution on this basis.

5.2.2.1          (1) Loans to public non-financial corporations: 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 and collective provision.

5.2.2.2          (1) Loans to public non-financial corporations: Credit cards

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

5.2.2.3          (1) Loans to public non-financial corporations: Term loans

Include the gross value of term loans.  Exclude loans to householders for the purpose of housing.

5.2.2.4          (1) Loans to public non-financial corporations: Leasing

Include the gross value of lease financing to counterparties.

This reporting item should be reported net of unearned revenue and gross of specific provisions and collective provision.

5.2.2.5          (1) Loans to public non-financial corporations: FX denominated

Include the gross value of loans that are denominated in currencies other than Australian dollars, converted to AUD using the spot exchange rate effective as at the reporting date.

5.2.3 (1) Loans to unincorporated businesses and community service organisations – Gross of specific provisions and collective provision

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

5.2.3 (2) Loans to unincorporated businesses and CSOs – Specific provisions

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

5.2.3 (3) Loans to unincorporated businesses and CSOs– Collective provision

Report the collective provision for this reporting line if this is recorded or allocated by the institution on this basis.

5.2.3.1          (1) Loans to unincorporated businesses and CSOs: 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 and collective provision.

5.2.3.2          (1) Loans to unincorporated businesses and CSOs: Credit cards

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

5.2.3.3          (1) Loans to unincorporated businesses and CSOs: Term loans

Include the gross value of term loans.  Exclude loans to householders for the purpose of housing.

5.2.3.4          (1) Loans to unincorporated businesses and CSOs: Leasing

Include the gross value of lease financing to counterparties.

This reporting item should be reported net of unearned revenue and gross of specific provisions and collective provision.

5.2.3.5          (1) Loans to unincorporated businesses and CSOs: FX denominated

Include the gross value of loans that are denominated in currencies other than Australian dollars, converted to AUD using the spot exchange rate effective as at the reporting date.

5.2.4 (1) Loans to Banks – Gross of specific provisions and collective provision

Include the gross value of loans to Australian banks.

5.2.4 (2) Loans to Banks – Specific provisions

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

5.2.4 (3) Loans to Banks – Collective provision

Report the collective provision for this reporting line if this is recorded or allocated by the institution on this basis.

5.2.5 (1) Loans to other ADIs – Gross of specific provisions and collective provision

Include the gross value of loans to other Australian ADIs.

5.2.5 (2) Loans to other ADIs – Specific provisions

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

5.2.5 (3) Loans to other ADIs – Collective provision

Report the collective provision for this reporting line, if this is recorded or allocated by the institution on this basis.

5.2.6 (1) Loans to RFCs – Gross of specific provisions and collective provision

Include the gross value of loans to RFCs.

5.2.6 (2) Loans to RFCs – Specific provisions

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

5.2.6 (3) Loans to RFCs – Collective provision

Report the collective provision for this reporting line if this is recorded or allocated by the institution on this basis.

5.2.7 (1) Loans to other financial corporations – Gross of specific provisions and collective provision

Include the gross value of loans to all other Australian financial corporations that are not banks or ADIs. This includes life insurance corporations, pension funds, other insurance corporations, central borrowing authorities and other financial institutions.

5.2.7 (2) Loans to other financial corporations – Specific provisions

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

5.2.7 (3) Loans to other financial corporations – Collective provision

Report the collective provision for this reporting line if this is recorded or allocated by the institution on this basis.

5.2.8 (1) Loans to Government – Gross of specific provisions and collective provision

Include the total gross value of loans to Commonwealth general government and State, Territory and local general government. This reporting item should be reported gross of any specific provisions and collective provision.

5.2.8 (2) Loans to Government – Specific provisions

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

5.2.8 (3) Loans to Government – Collective provision

Report the collective provision for this reporting line if this is recorded or allocated by the institution on this basis.

5.2.9 (1) Total commercial lending - Gross of specific provisions and collective provision

Sum the gross value of commercial lending.  This reporting item should be reported gross of any specific provisions and collective provision.

5.2.9 (2) Total commercial lending – Specific provisions

Report the aggregate specific provisions applying to commercial lending.

5.2.9 (3) Total commercial lending –  Collective provision

Report the aggregate collective provision for this reporting line.

5.2.9.1          (1) Total commercial lending of which: Leasing

Report the gross total of leases from commercial lending. Leasing includes all finance, operating and leveraged leases.

5.3        (1) Total gross loans and advances – Gross of specific provisions and collective provision

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

5.3        (2) Total gross loans and advances – Specific provisions

Record the specific provisions applying to the total loan portfolio.

5.3        (3) Total gross loans and advances – Collective provision

Record the collective provision  applying to the total loan portfolio.

5.3.1 (1) Total gross loans and advances of which: Margin lending

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

5.3.2 (1) Total gross loans and advances of which: Loans and advances to rural producers

Record loans to rural producers.  Use the following Australian and New Zealand Standard Industrial Classification (ANZSIC) categories[6]:

5.3.3 (1) Total gross loans and advances of which: Loans held for sale

Loans held for sale are loans (e.g. mortgages) acquired and held by an RFC with the intention of resale in the short-term (i.e. within 12 months of acquisition).

5.4        Intra-group loans and advances

5.4.1 Total (gross of provisions for impairment and collective provision)

Report all intra-group loans and advances (which include loan categories as defined above) to related parties that are resident entities.

Include:

• loans to related parties that are resident entities.

Exclude:

• holdings of debt securities issued by related parties that are resident entities (report as Investment or Trading securities);
• other accounts receivable (e.g. fees and commissions receivable) from related parties that are resident entities; and
• account balances that qualify as deposits.

5.4.2 Total (net of provisions for impairment and collective provision)

Record the net loans and advances to related parties

Note: Specific provision and collective provision for Intragroup loans and advances are to be reported only if the data is already recorded and allocated on that basis by the institution. Otherwise the specific provision and collective provision can be disclosed in aggregate.

6.             Intangible assets

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

Classification of assets as intangible must be in compliance with AASB 138 Intangible Assets. As a guide an ADI should adopt the disclosure used in its annual financial report.

6.1        Intangible assets with a finite life

Include total intangible assets with a finite life.

6.2        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.

6.3        Net intangible assets with a finite life

Subtract the “accumulated amortisation” from the “intangible assets with a finite life”.

6.4        Intangible assets with an infinite life (including goodwill)

Include total intangible assets with an infinite life.

6.5        Impairment

Include the total amount of impairment of intangible assets (including goodwill impairment) over the period from the date of acquisition to the end of the reporting period.

6.6        Net intangible assets with an infinite life

Subtract the “impairment” from the “intangible assets with an infinite life”.

7.             Other domestic assets

7.1        Financial assets

7.1.1 Interest accruals not elsewhere included

Include:

• interest accrued but not yet received and not accounted for elsewhere.

Exclude:

• interest added to loan accounts; and
• interest accrued on securities included in their carrying value.

7.1.2 Trade day vs settlement adjustments

Include any timing adjustments made to asset total for recording securities held on a settlement-day rather than trade-day basis.

7.1.3 Claims arising from repos and stock lending/borrowing

Include securities purchased under agreements to resell, stock borrowing.

Treatment is to be consistent with AASB 139.  Where the transferee of the stock effectively receives a lenders 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. 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 institution's physical stock positions recorded on the balance sheet in either Trading Securities or Investment Securities sections is not affected.

7.1.4 Derivative financial instruments

Include all trading and non trading derivatives consistent with the classification and measurement basis used for derivatives by institutions in accordance with AASB 132, AASB 7 and AASB 139.  Derivative financial instruments should be reported at their net fair value in this item when favorable to the reporting entity.  Fair values are obtained from quoted market prices, discount cash flow models and options pricing model.

7.1.5 Other accounts receivable

Include:

• prepaid commissions, fees, premiums and other prepayments;
• items in suspense - Report suspense or unreconciled/unidentified transactions/balances here; and
• receivables not elsewhere included.

7.1.6 Defined benefit asset

Include defined benefit asset consistent with the classification and measurement basis used in AASB 119 Employee Benefits (AASB 119).

7.1.7 Tax asset

This is defined in accordance with AASB 112 Income Taxes (AASB 112).

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

7.2        Non-financial assets

Report any other investments not included elsewhere. The reporting of non-financial assets should be in accordance with applicable Australian accounting standards.

7.2.1 Operating lease arrangement receivables – Machinery and equipment

Report any receivables from operating leases of terms of one year or more for tangible assets (e.g. motor vehicles and other plant and equipment).  Exclude Leasing of land and buildings.

7.2.2 Other non-financial assets

Report any other non financial assets not reported elsewhere.

Include:

• plant, equipment, property, capitalised software;
• physical stocks of commodities other than gold bullion;
• valuables and artwork;
• property purchased/held available for sale;
• all property that has been acquired or is held available for sale. This may include land developments, land and buildings, Investment property and other property (e.g. motor vehicles); and
• 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 servicing right.

8.             Total domestic assets

Sum all domestic assets.

Part 3 - Total assets

Sum all foreign and domestic assets.

Part 4 - Memo items

1. Outstanding principal balance of securitised assets

Report and provide a break up of the outstanding principal balance of all loans and other assets that have been sold to or originated into a SPV by or on behalf of the RFC or by a third party to a SPC Sponsored by the RFC (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;
• banks;
• other ADIs;
• RFCs;
• central borrowing authorities; and
• also exclude any securitized intra-group loans.

Section B: Liabilities

Part 1 - Liabilities issued to non-residents

Report all non-equity liabilities to non-residents, including liabilities to an overseas parent, subsidiaries, branches or associates. This includes:

1. Deposits

Include all deposit liabilities repayable to non-residents.  This includes transferable deposits (those exchangeable on demand at par without restriction or penalty and are freely transferable by cheque) and other deposits, i.e. liabilities reflecting evidence of deposit, for example non-transferable savings deposits, time deposits.

2.             Loans

Include financial liabilities that are created through the lending of funds by a creditor (the non-resident investor) to a debtor (the Australian reporting entity) through an arrangement in which the lender receives a non-tradable document or instrument or no security evidencing a transaction.

3.             Debt securities

Include all debt securities issued by the Australian reporting entity to non-residents which are usually traded (or tradable) in organised or other financial markets.

4.             Derivative financial instruments

Include all trading and non trading derivative contracts in a net liability position consistent with the classification and measurement basis used for derivatives by institutions in accordance with AASB 132, AASB 7 and AASB 139. Derivative financial instruments should be reported at their net fair value in this item when unfavourable to the reporting entity.  Fair values are obtained from quoted market prices, discount cash flow models and options pricing models.

5.             Other

Include the following liabilities issued to non-residents: trade credit liabilities; overdue settlements (arrears, or amounts past due and unpaid), miscellaneous accounts payable and any other liabilities not classified to the above categories.

Part 2 - Liabilities issued to residents

1. Deposits and placements due to

Deposits

This refers to deposits repayable to other domestic institutions. All deposits are to be reported net of any set-offs. Use the classification schema information that was provided as a reference guide at the start of this document to appropriately classify the sector disclosure required. 

Include:

• account balances from Australian banks and non-bank financial intermediaries such as merchant banks;
• deposits from Australian banks and non-bank financial institutions;
• AUD equivalent of foreign currency deposits;
• deposits from controlled and associated entities; and
• purchased payment facilities such as smart cards and electronic cash.

Exclude:

• negotiable and transferable certificates of deposit;
• subordinated debt issues;
• subordinated loans;
• loans due to controlled entities and associates;
• securities sold under agreements to repurchase;
• treasury related short-term borrowings from other banks;
• promissory notes; and
• commercial paper.

Placements due to

This includes settlement account balances due to other domestic 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:

• settlement account balances – Austraclear, and RITS balances with banks and non-bank financial institutions;
• amounts owing to banks and other financial institutions in relation to the payments system;
• items in the course of collection – due to banks and other financial institutions in relation to the payments system; and
• 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.

1.2.1 Placements due to banks

Include settlement account balances due to other Australian resident banks.

1.2.2 Placements due to other ADIs and RFCs

Include settlement account balances due to other ADIs and RFCs.

1.2.3 Placements due to RBA

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

1.2.4 Placements due to other financial institutions

Include settlement account balances due to other financial institutions.

1.6        Total deposit and placement liabilities

Sum the reporting items for amounts reported for deposit and placement liabilities.

1.6.1 Total deposit and placement liabilities of which denominated in foreign currency (AUD equivalent)

Of the total amount reported for “total deposit and placement liabilities” identify the component that is denominated in a foreign currency.  Report the Australian dollar equivalent of this foreign currency amount.

2.             Due to clearing houses

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

3.             Acceptances

Acceptances comprise undertakings by an RFC to pay bills of exchange drawn on customers.  The RFC expects most acceptances to be presented before being reimbursed by the customers.  These bills of exchange are not held as part of the RFC’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 RFC’s claim against each drawer of the bills of exchange.

Bills of exchange that have been accepted and held in a RFC’s asset portfolio can be included in the Statement of Financial Position under either Trading Securities or Investment Securities.

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

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

4.             Other borrowings

Include:

• subordinated loans with a residual maturity of 12 months or less;
• short-term loans due to controlled entities and associates;
• treasury related short-term borrowings from other banks;
• promissory notes with a residual maturity of 12 months or less;
• commercial paper with a residual maturity of 12 months or less;
• short-term debt securities from controlled and associated entities;
• negotiable and transferable certificates of deposits; and
• subordinated loans, promissory notes, commercial paper with a residual maturity greater than 12 months.

Exclude:

• deposits.

4.1        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 securities”.

4.2        Other short-term debt securities

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

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 securities”.

4.3        Long-term debt securities

Report all borrowings by the reporting entity in the form of long-term debt securities. Include all debt securities issued with a residual term to maturity of greater than 12 months.

4.4.1 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/banks.

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 “Deposits and Placements due to financial corporations: Banks”.

4.4.2 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/banks.

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 “Deposits and Placements due to financial corporations: Banks”.

4.5.1 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 banks and other 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 “Deposits and Placements due to financial corporations”.

4.5.2 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 banks and other 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 “Deposits and Placements due to financial corporations”.

4.6.1 Long-term loans – Variable

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

A loan is considered to be long-term if its residual term to maturity is greater than 12 months.

4.6.2 Long-term loans - Fixed

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

A loan is considered to be long-term if its residual term to maturity is greater than 12 months.

4.7        Total other borrowings

Sum the component parts listed under “Other Borrowings”.

5.             Income tax liability

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

5.3        Total income tax liability

Sum the income tax liability items determined in accordance with AASB 112 above.

6.             Other liabilities

6.1        Interest accruals not elsewhere included

Include:

• interest accrued but not yet paid and not accounted for elsewhere.

Exclude:

• interest added to loan and deposit accounts; and
• interest accrued on securities included in their carrying value.

6.2        Trade day vs settlement adjustments

Include:

• any timing adjustments made to liability total for recording securities held on a settlement-day rather than trade-day basis.

6.3        Claims arising from repos, stock lending

Include:

Securities sold under agreements to repurchase, stock lending

These transactions are to be recorded in accordance with AASB 139.  Where the transferee of the stock effectively receives a lenders 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. 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 RFC’s physical stock positions recorded on the balance sheet in either Trading Securities or Investment Securities sections is not affected.

6.4        Derivative financial instruments

Include all trading and non trading derivatives consistent with the classification and measurement basis used for derivatives by institutions in accordance with AASB 132, AASB 7 and AASB 139.  Derivative financial instruments should be reported at their net fair value in this item when unfavorable to the reporting entity.  Fair values are obtained from quoted market prices, discount cash flow models and options pricing models.

6.5        Other accounts payable

Include:

• tax payable;
• employee entitlements accrued;
• prepaid commissions, fees, premiums and other prepayments received;
• items in suspense - Report suspense or unreconciled/unidentified transactions/balances here; and
• payables not elsewhere included.

6.6-6.7 Defined benefit liabilities

Include defined benefit liabilities 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.

7.             Total liabilities issued to residents

Sum all liabilities issued to residents.

Part 3 - Total liabilities

Sum all liabilities issued to residents and non-residents.

Part 4 - Memo items

1. Contingent liabilities arising from bill endorsements

Endorsement of a bill of exchange creates a contingent liability by the endorser to pay out the funds conditional on the bearer/holder demanding payment.

Bills of exchange that have been endorsed and sold and are not in an RFC’s asset portfolio are included in this Memo item.

Bills of exchange that have been endorsed and held in an RFC’s asset portfolio are included in the Statement of Financial Position under either Trading Securities or Investment Securities.

Only endorsed bills where this entity is the first endorser of a non-ADI or RFC accepted bill should be included. 

Include only these counterparties:

• private trading corporations;
• government non-financial corporations;
• insurance corporations;
• financial auxiliaries and other financial intermediaries; and
• individuals, private unincorporated businesses, and CSOs.

Exclude:

• bills of exchange accepted and then sold by the institution (these appear in acceptances); and
• bills of exchange neither accepted nor endorsed.

Section C: Shareholders’ equity

Shareholders’ equity attributable to shareholders of the company.

[1]  ‘Category’ is defined in paragraph 17 of this Reporting Standard.

[2]  An example of how this Reporting Standard applies in relation to related bodies corporate of the same category is set out as a note to paragraph 6.

[3]  For the purposes of this test, assets are to be valued in accordance with their current market value.

[4] 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.

[5] 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.

[6] Australian and New Zealand Standard Industrial Classifications – Australian Bureau of Statistics publication (Catalogue No. 1292.0) – February 2006.