Financial Sector (Collection of Data) determination No. 22 of 2005 (Cth)
Financial Sector (Collection of Data) determination No. 22 of 2005
Reporting Standard GRS 320.0 (2005)
Financial Sector (Collection of Data) Act 2001
I, Charles Watts Littrell, a delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (‘the Act’) MAKE the reporting standard set out in the Schedule, which applies to financial sector entities of the kind specified in paragraph 2 of the reporting standard.
Under section 15 of the Act, I DECLARE that the reporting standard shall begin to apply to those entities on the later of 1 July 2005 and the date of registration on the Federal Register of Legislative Instruments.
Dated 21 June 2005
[signed]
……………………............
Charles Littrell
Executive General Manager
Policy, Research and Statistics Division
APRA
Interpretation
In this Notice
APRA means the Australian Prudential Regulation Authority.
Schedule
Reporting Standard GRS 320.0 (2005)
Reconciliation of Annual Disclosure
Objective of this reporting standard
This reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001 (the Collection of Data Act). It requires all general insurers (insurers) to provide APRA with a reconciliation of their published statutory accounts to the APRA regulatory accounts.
This reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with:
·the versions of Form GRF 320.0 Reconciliation of Annual Disclosure Form (GRF 320.0) designated for a ‘Licensed Insurer’ and ‘Consolidated Insurance Group’ and the instructions to those versions of the form (which are attached and all form part of this reporting standard).
Purpose
Data collected in each version of Form GRF 320.0 is used by APRA to reconcile:
(a) the financial disclosure of insurers in audited reports published to members under section 314 of the Corporations Act 2001; to
(b) the financial disclosures reported to APRA in accordance with the requirements of other reporting standards made under the Collection of Data Act; and
(c) to indicate the extent and materiality of any differences between the disclosures made in subparagraphs 1(a) and (b) above.
Application and commencement
This reporting standard applies to all insurers and shall begin to apply to those entities on the later of 1 July 2005 and the date of registration on the Federal Register of Legislative Instruments.
Information required
An insurer must provide APRA with the information required by the version of Form GRF 320.0 designated for a ‘Licensed Insurer’ for each reporting period.
An insurer that is a highest parent entity in relation to a consolidated insurance group must also provide APRA with the information required by the version of Form GRF 320.0 designated for a ‘Consolidated Insurance Group’ for each reporting period.
Forms and method of submission
The information required by this reporting standard must be given to APRA either:
(a)in electronic form, using one of the electronic submission mechanisms provided by the ‘Direct to APRA’ (also known as ‘D2A’) application; or
(b)manually completed on paper, which must be faxed or mailed to APRA’s head office.
Note: the Direct to APRA application software and paper forms may be obtained from APRA.
Reporting periods and due dates
Subject to paragraph 7, an insurer must provide the information required by this reporting standard in respect of each financial year (within the meaning of the Corporations Act 2001) of the insurer.
Note: The annual information required by paragraph 3 read with paragraph 6, together with certain annual information required by other reporting standards, will form part of the insurer’s yearly statutory accounts within the meaning of section 3 of the Insurance Act 1973 (the Insurance Act). This means that the information must be audited in accordance with paragraph 49J(1)(a) of the Insurance Act. Under subsection 49J(3), the auditor must give the insurer a certificate relating to the yearly statutory accounts, and that certificate must specify the matters provided for in the prudential standards. (The annual information required from a highest parent entity under paragraph 4 read with paragraph 6 is not required to be audited. APRA proposes to determine an exemption, under section 7 of the Insurance Act, in relation to the obligations under Part IV Division 4 of the Act in respect of the auditing of this information.)
APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular insurer to require it to provide the information:
(a) more frequently (if, having regard to the particular circumstances of the insurer, APRA considers it necessary or desirable to obtain information more frequently for the purposes of the prudential supervision of the insurer); or
(b) less frequently (if, having regard to the particular circumstances of the insurer and the extent to which it requires prudential supervision, APRA considers it unnecessary to require the insurer to provide the information as frequently as provided by paragraph 6).
The information required by this reporting standard must be provided to APRA 4 months after the end of the reporting period to which the information relates.
Note: Paragraph 49L(1)(a) of the Insurance Act provides that the auditor’s certificate required under subsection 49J(3) of that Act must be lodged with APRA in accordance with the prudential standards. The prudential standards provide that the certificate must be submitted to APRA together with the yearly statutory accounts. Accordingly, the auditor’s certificate relating to the information required under paragraph 3 read with paragraph 6 must be provided to APRA by the time specified in paragraph 8 of this reporting standard (unless an extension is granted under paragraph 9).
APRA may grant an insurer 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
The information provided by an insurer under this reporting standard (other than the information required from a highest parent entity under paragraph 4) must be the product of processes and controls that have been reviewed and tested by the approved auditor of the insurer. This will require the auditor to review and test the systems, processes and controls supporting the reporting of the information to ensure that they produce accurate data and are otherwise reliable. This review and testing must be done on an annual basis or more frequently if necessary to enable the approved auditor to form an opinion on the accuracy and reliability of the data.
The information provided by an insurer under this reporting standard must be subject to processes and controls developed by the insurer for the internal review and authorisation of that information. It is the responsibility of the board and senior management of the insurer to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.
Authorisation
If an insurer submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the insurer to digitally sign, authorise and encrypt the relevant data. For this purpose, APRA’s certificate authority will issue ‘digital certificates’, for use with the software, to officers of the insurer who have authority from the insurer to transmit the data to APRA.
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 insurer; or
(b) the Chief Financial Officer of the insurer (whatever his or her official title may be).
Minor alterations to forms and instructions
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.
If APRA makes such a variation it must notify insurers in writing.
Transitional
If a reporting period of an insurer ended on 30 June 2005, or ends after that date, the insurer must report under this reporting standard in respect of that reporting period.
Interpretation
In this reporting standard:
Accounting Standard AASB 1024 means the accounting standard so designated made by the Australian Accounting Standards Board, being the accounting standard that applied in respect of reporting periods (within the meaning of the accounting standard) commencing immediately before 1 January 2005;
approved auditor means an auditor who has been approved by APRA under section 40 of the Insurance Act;
business days means ordinary business days, exclusive of Saturdays, Sundays and public holidays;
consolidated insurance group means a group comprising:
(a) an insurer that is a highest parent entity; and
(b) each subsidiary under the control (within the meaning of Accounting Standard AASB 1024) of that insurer, whether the subsidiary is incorporated in Australia or not;
highest parent entity means an insurer that satisfies all of the following conditions:
(a) it is incorporated in Australia;
(b) it has at least one subsidiary under its control (within the meaning of Accounting Standard AASB 1024); and
(c) it is not itself a subsidiary of an insurer that is incorporated in Australia;
Insurance Act means the Insurance Act 1973;
insurer means a general insurer within the meaning of the Insurance Act;
Note: In the forms and instructions, a reference to an ‘authorised insurer’, ‘authorised insurance entity’ or ‘licensed insurer’ is a reference to an insurer, and a reference to an ‘authorised reinsurance entity’ is a reference to an insurer whose business consists only of undertaking liability by way of reinsurance.
Principal Executive Officer means the principal executive officer of the insurer for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the insurer;
reporting period means a period mentioned in paragraph 6 or, if applicable, paragraph 7.
Reporting Form GRF 320.0
Reconciliation of Annual Disclosure
Instruction Guide
Introduction
This form enables a reconciliation of the information disclosed by the reporting insurer to APRA in the form of the audited ‘yearly statutory accounts’, to the information disclosed by the insurer in its audited general purpose financial reports prepared in accordance with the Australian Accounting pronouncements (primarily AASB 1023 ‘Financial Reporting of General Insurance Activities’) and published to members under section 314 of the Corporations Act 2001.
This form will not be applicable where the insurer does not prepare and publish general purpose financial statements in accordance with AASB 1023.
Yearly statutory accounts
The forms that comprise the yearly statutory accounts are highlighted in the Reporting Requirements table. The yearly statutory accounts are to be prepared in accordance with the reporting/accounting requirements contained in the suite of prudential forms.
The reference to yearly statutory accounts does not refer to general purpose financial statements that the insurer may be required to prepare in accordance with the Australian accounting pronouncements.
It is a requirement of GGN 220.1 Governance and of section 49J of the Insurance Act 1973 that the Approved Auditor of the insurer must audit the yearly statutory accounts of the insurer.
Audit requirements
This form is required to be subject to review by the Approved Auditor of the insurer.
The scope and nature of audit testing required is outlined in the applicable Audit Guidance Statement issued by the Auditing and Assurance Board of the Australian Accounting Research Foundation.
Information provided in the form in respect of a financial year of an insurer forms part of the insurer’s ‘yearly statutory accounts’ within the meaning of section 3 of the Insurance Act 1973. This means that:
the completed form for the financial year must be audited by the approved auditor of the insurer (see paragraph 49J(1)(a) of the Act);
the insurer must make such arrangements as to enable the auditor to do this (subsection 49J(2));
the auditor must give the insurer a certificate relating to the completed form (and other completed forms that are part of the insurer’s yearly statutory accounts), which must contain statements of the auditor’s opinion on the matters required by the prudential standards to be dealt with in the certificate (subsection 49J(3));
the certificate must be lodged with APRA as provided for in the prudential standards (paragraph 49L(1)(a)), namely by the due date for lodging the form in respect of the financial year for the insurer.
Reporting entity
Forms are to be completed for the following:
Branch insurers of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);
Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and
Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity)
Unit of measurement
The form is to be completed in Australian currency, rounded in thousands of dollars with no decimal place.
Reporting period
Insurers are required to report the information in the reporting form on an annual basis.
The annual information is to be completed in respect of the financial year of the insurer.
The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer. See the Reporting Requirements table for details.
Reporting lag
This form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in the Reporting Requirements table.
Specific instructions
Audited financial statements
This refers to the audited financial statements of the reporting insurer, for the applicable financial year, that have been prepared in accordance with Australian accounting pronouncements.
APRA forms
For the purposes of this form, this refers to GRF 300.0 Statement of Financial Position and GRF 310.0 Statement of Financial Performance. These forms comprise part of the audited yearly statutory accounts that are to be prepared in accordance with the prudential reporting requirements.
Statement of Financial Position
Net Assets (per AASB 1023 Audited Financial Statements)
Report the net asset value as disclosed in the financial statements prepared in accordance with AASB 1023 ‘Financial Reporting of General Insurance Activities’.
Add back the following items (disclosed in AASB 1023 based Statement of Financial Position):
This section refers to values disclosed in the annual financial statements prepared in accordance with Australian accounting standards notably AASB 1023. Disclose values in this section as positives.
Outstanding Claims Provision (OCP)
Current liabilities
Report in this field the value of the OCP that is reported in the financial statements of the insurer as a current liability.
Non current liabilities
Report in this field the value of the OCP that is reported in the financial statements of the insurer as a non-current liability.
Unearned premiums Provision
Current liabilities
Report in this field the value of the Unearned premiums Provision that is reported as a Current Liability in the financial statements of the insurer.
Non current liabilities
Report in this field the value of the Unearned premiums Provision that is reported as a Non-Current Liability in the financial statements of the insurer.
Deferred Income Tax Expense (or Deferred Tax Liabilities)
Report in this field the value of the Deferred Income Tax Expense (or Deferred Tax Liabilities) recognised in the financial statements of the insurer.
Subtract the following items (disclosed in AASB 1023 based Statement of Financial Position):
This section refers to values disclosed in the annual financial statements prepared in accordance with Australian accounting standards notably AASB 1023. Disclose values in this section as positives.
Deferred Acquisition costs
Current assets
Report in this field the value of the Deferred Acquisition Costs reported as a current in accordance with AASB 1023 in the financial statements of the insurer.
Non current assets
Report in this field the value of the Deferred Acquisition Costs reported as a non-current asset in accordance with AASB 1023 in the financial statements of the insurer.
Deferred Reinsurance Expense
Current assets
Report in this field the value of the Deferred Reinsurance Expenses reported as a current asset in accordance with AASB 1023 in the financial statements of the insurer.
Non current assets
Report in this field the value of the Deferred Reinsurance Expenses reported as a non-current asset in accordance with AASB 1023 in the financial statements of the insurer.
Reinsurance recoveries associated with the Outstanding Claims Provision:
This item relates only to reinsurance recoveries associated with the outstanding claims provision. Do not include other reinsurance recoveries.
Current assets
Report in this field the value of the reinsurance recoveries associated with the outstanding claims provision reported as a current asset in accordance with AASB 1023 in the financial statements of the insurer.
Non current assets
Report in this field the value of the reinsurance recoveries associated with the outstanding claims provision reported as a non-current asset in accordance with AASB 1023 in the financial statements of the insurer.
Future Income tax Benefits (Deferred Taxation Assets)
Report in this field the value of the Future Income tax Benefits (Deferred Taxation Assets) recognised in the financial statements of the insurer.
Net adjustments
Represents the aggregate value of items in the section “Add back the following items disclosed in AASB 1023 based Statement of Financial Position” (i.e. items 2 – 4), less the aggregate value of the items in the section “Subtract the following items disclosed in AASB 1023 based Statement of Financial Position” (i.e. items 5 – 8).
Add back the following items as disclosed in the APRA forms:
This section refers to values disclosed in GRF 300.0 Statement of Financial Position on an annual basis, prepared in accordance with the instructions to the APRA forms. Disclose values in this section as positives.
Expected Reinsurance Recoveries associated with Premium Liabilities
Current assets
Report the value of Expected Reinsurance Recoveries reported as a current asset in accordance with GRF 300.0 Statement of Financial Position.
Non current assets
Report the value of Expected Reinsurance Recoveries reported as a non-current asset in accordance with GRF 300.0 Statement of Financial Position.
Reinsurance recoveries associated with Outstanding Claims Provision:
Current assets
Report the value of Reinsurance recoveries associated with Outstanding Claims Provision reported as a current asset in accordance with GRF 300.0 Statement of Financial Position.
Non current assets
Report the value of Reinsurance recoveries associated with Outstanding Claims Provision, reported as a non-current asset in accordance with GRF 300.0 Statement of Financial Position.
Future Income tax Benefits (Deferred Taxation Assets)
Report in this field the value of the Future Income tax Benefits (Deferred Taxation Assets) recognised in GRF 300.0 Statement of Financial Position.
Current assets
Report the value of Future Income tax Benefits (Deferred Taxation Assets) reported as a current asset in accordance with GRF 300.0 Statement of Financial Position.
Non current assets
Report the value of Future Income tax Benefits (Deferred Taxation Assets), reported as a non-current asset in accordance with GRF 300.0 Statement of Financial Position.
Subtract the following items as disclosed in the APRA forms:
This section refers to values disclosed in GRF 300.0 Statement of Financial Position on an annual basis, prepared in accordance with the instructions to the APRA forms. Disclose values in this section as positives.
Premium Liabilities
Current liabilities
Report in this field the value of Premium Liabilities disclosed in the APRA forms as a current liability and measured in Accordance with GPS 210 Liability Valuation for General Insurers.
Non current liabilities
Report in this field the value of Premium Liabilities disclosed in the APRA forms as a non-current liability and measured in Accordance with GPS 210 Liability Valuation for General Insurers.
Outstanding Claims Provision (OCP)
Current liabilities
Report in this field the value of OCP disclosed in the APRA forms as a current liability and measured in accordance with GPS 210 Liability Valuation for General Insurers.
Non current liabilities
Report in this field the value of OCP disclosed in the APRA forms as a non-current liability and measured in accordance with GPS 210 Liability Valuation for General Insurers.
Deferred Income Tax Expense (or Deferred Tax Liabilities)
Report in this field the value of the Deferred Income Tax Expense (or Deferred Tax Liabilities) recognised in GRF 300.0 Statement of Financial Position.
Net adjustment for APRA Items
This represents the aggregate value of the items in the “Add back the following items as disclosed in the APRA forms” section (i.e. items 10 – 12), less the aggregate value of the items in the “Subtract the following items as disclosed in the APRA forms” (i.e. items 13 – 15).
Other reconciling differences.
Asset valuation differences (market value in APRA forms compared to net market value in AASB 1023).
The APRA forms are to be prepared using market value, however net market value can be used. This differs from AASB 1023 ‘Financial Reporting of General Insurance Activities’ which requires net market value to be used. The difference in valuation is generally attributable to transaction costs.
If this is material report the differences in valuation.
Detail other items not specifically listed above that is required to be taken into account to reconcile the Net Assets per the Statement of Financial Position prepared in accordance with AASB 1023 to the Net Assets per the Statement of Financial Position prepared in accordance with APRA regulatory forms. Disclose subtractions as negative values and additions as positive values.
Adjusted Net Assets
This represents the Net Asset value reported in item number 1, adjusted for item 9. “Net Adjustment” and item 16 “Net adjustment for APRA forms” and any items disclosed in 17. “Other reconciling differences”.
Net Assets (per APRA Forms)
Report the Net Assets as disclosed in GRF 300.0 Statement of Financial Position prepared in accordance with APRA regulatory forms. The value disclosed in this field must agree to the “Adjusted Net Assets” figure calculated in item number 18 “Adjusted Net Assets”.
Statement of Financial Performance
Net profit/loss after income tax attributable to members of the company (as disclosed in AASB 1023 Audited Financial Statements)
Report the net profit/loss after income tax attributable to members of the company as disclosed in the financial statements prepared in accordance with AASB 1023 “Financial Reporting of General Insurance Activities”.
Add back the following items as disclosed in the AASB 1023 based Statement of Financial Performance:
This section refers to values disclosed in the annual financial statements (i.e. GRF 310.0 Statement of Financial Performance) prepared in accordance with Australian accounting standards notably AASB 1023 “Financial Reporting of General Insurance Activities”. Disclose values in this section as positives.
Tax Expense
Report in this field the value of taxation expense that is reported in the financial statements (GRF 310.0 Statement of Financial Performance) for the financial year ended of the insurer.
Claims Expense
Report in this field the value of the claims expense that is reported in the financial statements (GRF 310.0 Statement of Financial Performance) for the financial year ended of the insurer as a current liability.
Underwriting Costs (i.e. AASB 1023 acquisition Costs)
Report in this field the value of the underwriting costs, that is reported in the financial statements (GRF 310.0 Statement of Financial Performance).
Reinsurance expense
Report in this field the value of the amortised reinsurance expense underwriting costs, that is reported in the financial statements (GRF 310.0 Statement of Financial Performance).
Subtract the following items as disclosed in the AASB 1023 based Statement of Financial Performance
This section refers to values disclosed in the annual financial statements prepared in accordance with Australian accounting standards notably AASB 1023 “Financial Reporting of General Insurance Activities”. Disclose values in this section as positives.
Earned Premium Revenue
Report in this field the value of the earned premium revenue that is reported in the GRF 310.0 Statement of Financial Performance for the financial year of the insurer prepared in accordance with AASB 1023.
Reinsurance recoveries revenue
Report in this field the value of the reinsurance recoveries revenue that is reported in the GRF 310.0 Statement of Financial Performance for the financial year of the insurer prepared in accordance with AASB 1023.
Net adjustments
This represents the aggregate value of the items disclosed in the “Add back the following items as disclosed in the AASB 1023 based Statement of Financial Performance” section (i.e. items 21 – 24), less the aggregate value of the items disclosed in the “Subtract the following items as disclosed in the AASB 1023 based Statement of Financial Performance” (i.e. items 25 and 26).
Add back the following items as disclosed in the APRA forms:
This section refers to values disclosed in the GRF 310.0 Statement of Financial Performance on a financial year basis, prepared in accordance with the instructions to the APRA forms. Disclose values in this section as positives.
Premium Revenue
Report in this field the value of the premium revenue that is reported in accordance with GRF 310.0 Statement of Financial Performance for the financial year of the insurer.
Reinsurance recoveries revenue (per APRA returns):
Report in this field the value of the Reinsurance recoveries revenue that is reported in accordance with GRF 310.0 Statement of Financial Performance for the financial year of the insurer. Reinsurance recoveries revenue is to be reported for the following:
·Relating to future years (i.e. expected reinsurance recoveries); and
·Relating to current and prior years.
Subtract the following items as disclosed in the APRA forms:
This section refers to values disclosed in the APRA forms (GRF 310.0 Statement of Financial Performance”) on a financial year basis, prepared in accordance with the instructions to the APRA forms. Disclose values in this section as positives.
Tax Expense
Report in this field the value of the taxation expense disclosed in GRF 310.0 Statement of Financial Performance for the financial year ended of the insurer.
Claims Expense
Relating to Premium liabilities
Report in this field that component of the value of claims expense relating to Premium Liabilities as disclosed in GRF 310.0 Statement of Financial Performance.
Relating to Outstanding Claims Provision
Report in this field that component of the value of claims expense relating to the outstanding claims provision as disclosed in GRF 310.0 Statement of Financial Performance.
Acquisition costs
Report in this field the value of acquisition costs (which will include fully expense value of acquisition costs) that is disclosed in GRF 310.0 Statement of Financial Performance.
Reinsurance expense
Report in this field the value of reinsurance expense (which will constitute the fully expense value the cost of reinsurance cover) that is disclosed in GRF 310.0 Statement of Financial Performance.
Net adjustment for APRA Items
This represents the aggregate value of the items in the “Add back the following items as disclosed in the APRA forms” section (i.e. items 28 and 29), less the aggregate value of the items in the “Subtract the following items as disclosed in the APRA forms” (i.e. items 30 – 33).
Other reconciling differences
The APRA forms are to be prepared using market value, however net market value can be used. This differs from AASB 1023 ‘Financial Reporting of General Insurance Activities’ which requires net market value to be used. The difference in valuation is generally attributable to transaction costs.
If this is material report the differences in valuation.
Detail other items not specifically listed above that is required to reconcile the “Net profit/loss after income tax attributable to members of the company” prepared in accordance with AASB 1023 to the “Net profit/loss after income tax attributable to members of the company” prepared in accordance with APRA regulatory forms. Disclose subtractions as negative values and additions as positive values.
Adjusted Net profit/loss after income tax attributable to members of the company
This represents the Net profit/loss after income tax attributable to members of the company reported in item number 20, adjusted for item 27 “Net Adjustment” and item 34. “Net adjustment for APRA Items” and the aggregate value of any items disclosed in item number 35.
Net profit/loss after income tax attributable to members of the company (per APRA Forms)
Report the Net profit/loss after income tax attributable to members of the company as disclosed in GRF 310.0 Statement of Financial Performance Statement prepared in accordance with APRA regulatory forms. The value disclosed in this field must agree to the “Adjusted Net profit/loss after income tax attributable to members of the company” figure calculated in item number 36.
Reporting Form GRF 320.0
Reconciliation of Annual Disclosure
Instruction Guide
Introduction
This form enables a reconciliation of the information disclosed by the reporting insurer to APRA in the form of the audited ‘yearly statutory accounts’, to the information disclosed by the insurer in its audited general purpose financial reports prepared in accordance with the Australian Accounting pronouncements (primarily AASB 1023 ‘Financial Reporting of General Insurance Activities’) and published to members under section 314 of the Corporations Act 2001.
This form will not be applicable where the insurer does not prepare and publish general purpose financial statements in accordance with AASB 1023.
Yearly statutory accounts
The forms that comprise the audited yearly statutory accounts are highlighted in the Reporting Requirements table. The yearly statutory accounts are to be prepared in accordance with the reporting/accounting requirements contained in the suite of prudential forms.
The reference to yearly statutory accounts does not refer to general purpose financial statements that the insurer may be required to prepare and publish in accordance with the Australian accounting pronouncements.
It is a requirement of GGN 220.1 Governance and of section 49J of the Insurance Act 1973 that the Approved Auditor of the Insurer must audit the yearly statutory accounts of the insurer.
Audit requirements
This form is required to be subject to review by the Approved Auditor of the insurer.
The scope and nature of audit testing required is outlined in the applicable Audit Guidance Statement issued by the Auditing and Assurance Board of the Australian Accounting Research Foundation.
Information provided in the form in respect of a financial year of an insurer forms part of the insurer’s ‘yearly statutory accounts’ within the meaning of section 3 of the Insurance Act 1973. This means that:
the completed form for the financial year must be audited by the approved auditor of the insurer (see paragraph 49J(1)(a) of the Act);
the insurer must make such arrangements as to enable the auditor to do this (subsection 49J(2));
the auditor must give the insurer a certificate relating to the completed form (and other completed forms that are part of the insurer’s yearly statutory accounts), which must contain statements of the auditor’s opinion on the matters required by the prudential standards to be dealt with in the certificate (subsection 49J(3));
the certificate must be lodged with APRA as provided for in the prudential standards (paragraph 49L(1)(a)), namely by the due date for lodging the form in respect of the financial year for the insurer.
Reporting entity
Forms are to be completed for the ‘Consolidated Insurance Group’ where appropriate.
Unit of measurement
The form is to be completed in Australian currency, rounded in thousands of dollars with no decimal place.
Reporting period
Insurers are required to report the information in the reporting form on an annual basis.
The annual information is to be completed in respect of the financial year of the insurer.
The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer. See the Reporting Requirements table for details.
Reporting lag
This form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in the Reporting Requirements table.
Specific instructions
Audited financial statements
This refers to the audited financial statements of the reporting insurer, for the applicable financial year, that have been prepared in accordance with Australian accounting pronouncements.
APRA forms
For the purposes of this form, this refers to GRF 300.0 Statement of Financial Position and GRF 310.0 Statement of Financial Performance. These forms comprise part of the audited yearly statutory accounts that are to be prepared in accordance with the prudential reporting requirements.
Statement of Financial Position
Net Assets (per AASB 1023 Audited Financial Statements)
Report the net asset value as disclosed in the financial statements prepared in accordance with AASB 1023 “Financial Reporting of General Insurance Activities”.
Add back the following items (disclosed in AASB 1023 based Statement of Financial Position):
This section refers to values disclosed in the annual financial statements prepared in accordance with Australian accounting standards notably AASB 1023. Disclose values in this section as positives.
Outstanding Claims Provision (OCP)
Current liabilities
Report in this field the value of the OCP that is reported in the financial statements of the insurer as a current liability.
Non current liabilities
Report in this field the value of the OCP that is reported in the financial statements of the insurer as a non-current liability.
Unearned premiums Provision
Current liabilities
Report in this field the value of the Unearned premiums Provision that is reported as a Current Liability in the financial statements of the insurer.
Non current liabilities
Report in this field the value of the Unearned premiums Provision that is reported as a Non-Current Liability in the financial statements of the insurer.
Deferred Income Tax Expense (or Deferred Tax Liabilities)
Report in this field the value of the Deferred Income Tax Expense (or Deferred Tax Liabilities) recognised in the financial statements of the insurer.
5A. Liabilities of subsidiaries not forming part of the APRA 'Consolidated Insurance Group'.
Report the value of total liabilities of entities which are included in the audited consolidated financial statements, but which are no included in the APRA definition of the consolidated group for reporting purposes.
The consolidated operations of the Licensed Australian Insurer for the purposes of APRA prudential reporting, is interpreted as including the accounts of the ultimate or highest parent entity in a group structure, which is an Australian licensed general insurance entity, and includes all subsidiaries, associates and joint ventures both register in Australia and overseas of that parent entity.
The parent entity of the reporting group (as defined for APRA reporting), does not include a company (e.g. non-operating holding company) that is not a licensed general insurance entity.
Definition of controlled entities should be consistent with the requirements of Australian accounting standards AASB 1024 “Consolidated Accounts” and definition of associates should be consistent with AASB 1016 “Accounting for Investments in Associates”.
Subtract the following items (disclosed in AASB 1023 based Statement of Financial Position):
This section refers to values disclosed in the annual financial statements prepared in accordance with Australian accounting standards notably AASB 1023 “Financial Reporting of General Insurance Activities”. Disclose values in this section as positives.
Deferred Acquisition costs
Current assets
Report in this field the value of the Deferred Acquisition Costs reported as a current in accordance with AASB 1023 in the financial statements of the insurer.
Non current assets
Report in this field the value of the Deferred Acquisition Costs reported as a non-current asset in accordance with AASB 1023 in the financial statements of the insurer.
Deferred Reinsurance Expense
Current assets
Report in this field the value of the Deferred Reinsurance Expenses reported as a current asset in accordance with AASB 1023 in the financial statements of the insurer.
Non current assets
Report in this field the value of the Deferred Reinsurance Expenses reported as a non-current asset in accordance with AASB 1023 in the financial statements of the insurer.
Reinsurance recoveries associated with the Outstanding Claims Provision:
This item relates only to reinsurance recoveries associated with the outstanding claims provision. Do not include other reinsurance recoveries.
Current assets
Report in this field the value of the reinsurance recoveries associated with the outstanding claims provision reported as a current asset in accordance with AASB 1023 in the financial statements of the insurer.
Non current assets
Report in this field the value of the reinsurance recoveries associated with the outstanding claims provision reported as a non-current asset in accordance with AASB 1023 in the financial statements of the insurer.
Future Income tax Benefits (Deferred Taxation Assets)
Report in this field the value of the Future Income tax Benefits (Deferred Taxation Assets) recognised in the financial statements of the insurer.
9A. Assets of subsidiaries not forming part of the APRA 'Consolidated Insurance Group'.
Report the value of total assets of entities which are included in the audited consolidated financial statements, but which are no included in the APRA definition of the consolidated group for reporting purposes.
The consolidated operations of the Licensed Australian Insurer for the purposes of APRA prudential reporting, is interpreted as including the accounts of the ultimate or highest parent entity in a group structure, which is an Australian licensed general insurance entity, and includes all subsidiaries, associates and joint ventures both register in Australia and overseas of that parent entity.
The parent entity of the reporting group (as defined for APRA reporting), does not include a company (e.g. non-operating holding company) that is not a licensed general insurance entity.
Definition of controlled entities should be consistent with the requirements of Australian accounting standards AASB 1024 “Consolidated Accounts” and definition of associates should be consistent with AASB 1016 “Accounting for Investments in Associates”.
Net adjustments
Represents the aggregate value of items in the section “Add back the following items disclosed in AASB 1023 based Statement of Financial Position” (i.e. items 2 – 5A), less the aggregate value of the items in the section “Subtract the following items disclosed in AASB 1023 based Statement of Financial Position” (i.e. items 5 – 9A).
Add back the following items as disclosed in the APRA forms:
This section refers to values disclosed in GRF 300.0 Statement of Financial Position - Consolidated Insurance Group on an annual basis, prepared in accordance with the instructions to the APRA forms. Disclose values in this section as positives.
Expected Reinsurance Recoveries associated with Premium Liabilities
Current assets
Report the value of Expected Reinsurance Recoveries reported as a current asset in accordance with GRF 300.0 Statement of Financial Position - Consolidated Insurance Group.
Non current assets
Report the value of Expected Reinsurance Recoveries reported as a non-current asset in accordance with GRF 300.0 Statement of Financial Position - Consolidated Insurance Group.
Reinsurance recoveries associated with Outstanding Claims Provision:
Current assets
Report the value of Reinsurance recoveries associated with Outstanding Claims Provision reported as a current asset in accordance with GRF 300.0 Statement of Financial Position - Consolidated Insurance Group.
Non current assets
Report the value of Reinsurance recoveries associated with Outstanding Claims Provision, reported as a non-current asset in accordance with GRF 300.0 Statement of Financial Position - Consolidated Insurance Group.
Future Income tax Benefits (Deferred Taxation Assets)
Report in this field the value of the Future Income tax Benefits (Deferred Taxation Assets) recognised in GRF 300.0 Statement of Financial Position - Consolidated Insurance Group.
Current assets
Report the value of Future Income tax Benefits (Deferred Taxation Assets) reported as a current asset in accordance with GRF 300.0 Statement of Financial Position - Consolidated Insurance Group.
Non current assets
Report the value of Future Income tax Benefits (Deferred Taxation Assets), reported as a non-current asset in accordance with GRF 300.0 Statement of Financial Position - Consolidated Insurance Group.
Subtract the following items as disclosed in the APRA forms:
This section refers to values disclosed in GRF 300.0 Statement of Financial Position - Consolidated Insurance Group on an annual basis, prepared in accordance with the instructions to the APRA forms. Disclose values in this section as positives.
Premium Liabilities
Current liabilities
Report in this field the value of Premium Liabilities disclosed in the APRA forms as a current liability and measured in accordance with GPS 210 Liability Valuation for General Insurers.
Non current liabilities
Report in this field the value of Premium Liabilities disclosed in the APRA forms as a non-current liability and measured in accordance with GPS 210 Liability Valuation for General Insurers.
Outstanding Claims Provision (OCP)
Current liabilities
Report in this field the value of OCP disclosed in the APRA forms as a current liability and measured in accordance with GPS 210 Liability Valuation for General Insurers.
Non current liabilities
Report in this field the value of OCP disclosed in the APRA forms as a non-current liability and measured in Accordance with GPS 210 Liability Valuation for General Insurers
Deferred Income Tax Expense (or Deferred Tax Liabilities)
Report in this field the value of the Deferred Income Tax Expense (or Deferred Tax Liabilities) recognised in GRF 300.0 Statement of Financial Position.
Net adjustment for APRA Items
This represents the aggregate value of the items in the “Add back the following items as disclosed in the APRA forms” section (i.e. items 10 – 12), less the aggregate value of the items in the “Subtract the following items as disclosed in the APRA forms” (i.e. items 13 – 15).
Other reconciling differences.
Asset valuation differences (market value in APRA forms compared to net market value in AASB 1023).
The APRA forms are to be prepared using market value, however net market value can be used. This differs from AASB 1023 ‘Financial Reporting of General Insurance Activities’ which requires net market value to be used. The difference in valuation is generally attributable to transaction costs.
If this is material report the differences in valuation.
Detail other items not specifically listed above that is required to be taken into account to reconcile the Net Assets per the Statement of Financial Position prepared in accordance with AASB 1023 to the Net Assets per the Statement of Financial Position prepared in accordance with APRA regulatory forms. Disclose subtractions as negative values and additions as positive values.
Adjusted Net Assets
This represents the Net Asset value reported in item number 1, adjusted for item 9. “Net Adjustment” and item 16 “Net adjustment for APRA forms” and any items disclosed in 17. “Other reconciling differences”.
Net Assets (per APRA Forms)
Report the Net Assets as disclosed in GRF 300.0 Statement of Financial Position - Consolidated Insurance Group prepared in accordance with APRA regulatory forms. The value disclosed in this field must agree to the “Adjusted Net Assets” figure calculated in item number 18 “Adjusted Net Assets”.
Statement of Financial Performance
Net profit/loss after income tax attributable to members of the company (as disclosed in AASB 1023 Audited Financial Statements)
Report the net profit/loss after income tax attributable to members of the company as disclosed in the financial statements prepared in accordance with AASB 1023.
Add back the following items as disclosed in the AASB 1023 based Statement of Financial Performance:
This section refers to values disclosed in the annual financial statements (GRF 310.0 Statement of Financial Performance) prepared in accordance with Australian accounting standards notably AASB 1023. Disclose values in this section as positives.
Tax Expense
Report in this field the value of taxation expense that is reported in the financial statements (GRF 310.0 Statement of Financial Performance) for the financial year ended of the insurer.
Claims Expense
Report in this field the value of the claims expense that is reported in the financial statements (GRF 310.0 Statement of Financial Performance) for the financial year ended of the insurer as a current liability.
Underwriting Costs (i.e. AASB 1023 acquisition Costs)
Report in this field the value of the underwriting costs, that is reported in the financial statements (GRF 310.0 Statement of Financial Performance).
Reinsurance expense
Report in this field the value of the amortised reinsurance expense underwriting costs, that is reported in the financial statements (GRF 310.0 Statement of Financial Performance).
Subtract the following items as disclosed in the AASB 1023 based Statement of Financial Performance
This section refers to values disclosed in the annual financial statements prepared in accordance with Australian accounting standards notably AASB 1023. Disclose values in this section as positives.
Earned Premium Revenue
Report in this field the value of the earned premium revenue that is reported in GRF 310.0 Statement of Financial Performance for the financial year of the insurer prepared in accordance with AASB 1023.
Reinsurance recoveries revenue
Report in this field the value of the reinsurance recoveries revenue that is reported in GRF 310.0 Statement of Financial Performance for the financial year of the insurer prepared in accordance with AASB 1023.
Net adjustments
This represents the aggregate value of the items disclosed in the “Add back the following items as disclosed in the AASB 1023 based Statement of Financial Performance” section (i.e. items 21 – 24), less the aggregate value of the items disclosed in the “Subtract the following items as disclosed in the AASB 1023 based Statement of Financial Performance” (i.e. items 25 and 26).
Add back the following items as disclosed in the APRA forms:
This section refers to values disclosed in GRF 310.0 Statement of Financial Performance on a financial year basis, prepared in accordance with the instructions to the APRA forms. Disclose values in this section as positives.
Premium Revenue
Report in this field the value of the premium revenue that is reported in accordance with GRF 310.0 Statement of Financial Performance for the financial year of the insurer.
Reinsurance recoveries revenue (per APRA returns):
Report in this field the value of the Reinsurance recoveries revenue that is reported in accordance with GRF 310.0 Statement of Financial Performance for the financial year of the insurer. Reinsurance recoveries revenue is to be reported for the following:
·Relating to future years (i.e. expected reinsurance recoveries)
·Relating to current and prior years
Subtract the following items as disclosed in the APRA forms:
This section refers to values disclosed in GRF 310.0 Statement of Financial Performance on a financial year basis, prepared in accordance with the instructions to the APRA forms. Disclose values in this section as positives.
Tax Expense
Report in this field the value of the taxation expense disclosed in the APRA forms (GRF 310.0 Statement of Financial Performance) for the financial year ended of the insurer.
Claims Expense
Relating to Premium liabilities
Report in this field that component of the value of claims expense relating to Premium Liabilities as disclosed in GRF 310.0 Statement of Financial Performance.
Relating to Outstanding Claims Provision
Report in this field that component of the value of claims expense relating to the outstanding claims provision as disclosed in GRF 310.0 Statement of Financial Performance.
Acquisition costs
Report in this field the value of acquisition costs (which will include fully expense value of acquisition costs) that is disclosed in GRF 310.0 Statement of Financial Performance.
Reinsurance expense
Report in this field the value of reinsurance expense (which will constitute the fully expense value the cost of reinsurance cover) that is disclosed in GRF 310.0 Statement of Financial Performance.
Net adjustment for APRA Items
This represents the aggregate value of the items in the “Add back the following items as disclosed in the APRA forms” section (i.e. items 28 and 29), less the aggregate value of the items in the “Subtract the following items as disclosed in the APRA forms” (i.e. items 30 – 33).
Other reconciling differences.
The APRA forms are to be prepared using market value, however net market value can be used. This differs from AASB 1023 which requires net market value to be used. The difference in valuation is generally attributable to transaction costs.
If this is material report the differences in valuation.
Detail other items not specifically listed above that is required to reconcile the “Net profit/loss after income tax attributable to members of the company” prepared in accordance with AASB 1023 to the “Net profit/loss after income tax attributable to members of the company” prepared in accordance with APRA regulatory forms. Disclose subtractions as negative values and additions as positive values.
Adjusted Net profit/loss after income tax attributable to members of the company
This represents the Net profit/loss after income tax attributable to members of the company reported in item number 20, adjusted for item 27 “Net Adjustment” and item 34. “Net adjustment for APRA Items” and the aggregate value of any items disclosed in item number 35.
Net profit/loss after income tax attributable to members of the company (per APRA Forms)
Report the Net profit/loss after income tax attributable to members of the company as disclosed in GRF 310.0 Statement of Financial Performance prepared in accordance with APRA regulatory forms. The value disclosed in this field must agree to the “Adjusted Net profit/loss after income tax attributable to members of the company” figure calculated in item number 36.
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