Banking (prudential standards) determination No. 2 of 2004 References to accounting standards (Cth)

Banking (prudential standards) determination No. 2 of 2004

References to accounting standards

Banking Act 1959

I, John Francis Laker, Chair of APRA, under subsection 11AF(3) of the Banking Act 1959 (the “Act”), VARY the prudential standards and guidance notes referred to in the Schedule as provided for in the Schedule.

This variation comes into force on 1 January 2005.

Dated   15 December 2004

[Signed]

John Francis Laker

Chair

Note An ADI that does not comply with a standard may be issued with directions by APRA under paragraph 11CA(1)(a) of the Act. Non-compliance with a direction is an offence attracting a penalty of up to $27,500 for each day that the offence continues. Officers of the ADI may also be criminally liable (see section 11CG).

Interpretation

In this Notice

ADI has the meaning given in section 5 of the Act.

APRA means the Australian Prudential Regulation Authority.

Schedule          

[1]           Guidance Note AGN 110.2 – Non-consolidated Subsidiaries, paragraph 2, after ‘Australian accounting standards’

insert

‘as they applied in relation to reporting periods that began immediately before 1 January 2005’

1. Guidance Note AGN 111.1 – Tier 1 Capital, subparagraph 1(a), after ‘Australian Accounting Standards’

insert

‘(as they applied in relation to reporting periods that began immediately before 1 January 2005)’

1. Guidance Note AGN 111.2 – Tier 2 Capital, subparagraph 1(c)

substitute

‘the revaluations must be conducted regularly and subject to audit review consistent with Australian Accounting Standards AASB 1010 and AASB 1041 (as they applied in relation to reporting periods that began immediately before 1 January 2005) and auditing practice; and’

1. Prudential Standard APS 120 – Funds Management & Securitisation, footnote 1 on page 1

omit

‘(as defined in Australian Accounting Standards)’

substitute

‘(as defined in the Australian Accounting Standards as they applied in relation to reporting periods that began immediately before 1 January 2005)’

1. Guidance Note AGN 120.1 – Disclosure and Separation, subparagraph 11(d), after ‘Australian Accounting Standards’

insert

‘(as they applied in relation to reporting periods that began immediately before 1 January 2005)’

1. Prudential Standard APS 221 – Large Exposures, subparagraph 8(c), after ‘Australian accounting standards’

insert

‘as they applied in relation to reporting periods that began immediately before 1 January 2005’