Financial Sector (Collection of Data) determination No. 39 of 2005 Reporting Standard ARS 323.0 (2005) Statement of Financial Position (Licensed ADI) (Cth)

Financial Sector (Collection of Data) determination No. 39 of 2005

Reporting Standard ARS 323.0 (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 the financial sector entities referred to 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 ARS 323.0 (2005)

Statement of Financial Position (Licensed ADI)

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 credit unions, building societies and Cairns Penny Savings & Loans Limited, to report to APRA, in relation to their statement of financial position. 

This reporting standard outlines the overall requirements for the provision of relevant information to APRA.  It should be read in conjunction with:

·        Form ARF 323.0 Statement of Financial Position (Licensed ADI) (Form ARF 323.0) and the associated instructions (which are attached and all form part of this reporting standard).

Purpose

1.       Data collected in Form ARF 323.0 is used by APRA for the purpose of prudential supervision.  It may also be used by the Reserve Bank of Australia and the Australian Bureau of Statistics.

Application and commencement

2.       This reporting standard applies to credit unions, building societies, specialist credit card institutions and Cairns Penny Savings & Loans Limited, 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

3.       A relevant ADI must provide APRA with the information required by Form ARF 323.0 for each relevant reporting period.

Forms and method of submission

4.       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

5.       Subject to paragraph 6, a relevant ADI must provide APRA with the information required by this reporting standard in respect of the following reporting periods:

(a)in the case of a relevant ADI that is a Monetary Aggregates Reporter:

(i)each calendar month (including the month during which the ADI became a Monetary Aggregates Reporter); and

(ii)each quarter based on the financial year, within the meaning of the Corporations Act 2001, of the ADI (including the quarter during which the ADI became a Monetary Aggregates Reporter); and

(b)in the case of a relevant ADI that it not a Monetary Aggregates Reporter, each quarter based on the financial year, within the meaning of the Corporations Act 2001, of the ADI.

6.       APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular ADI to require it to provide the information:

(a)      more frequently (if, having regard to the particular circumstances of the ADI, APRA considers it necessary or desirable to obtain information more frequently for the purposes of the prudential supervision of the ADI); or

(b)     less frequently  (if, having regard to the particular circumstances of the ADI and the extent to which it requires prudential supervision, APRA considers it is unnecessary to require the ADI to provide the information as frequently as provided by paragraph 5).

7.       The information required by this reporting standard must be provided to APRA by the following times:

(a)      in the case of monthly information referred to in sub-subparagraph 5(a)(i) – 10 business days after the end of the reporting period to which the information relates; and

(b)     in the case of quarterly information referred to in sub-subparagraphs 5(a)(ii) and subparagraph 5(b) – 15 business days after the end of the reporting period to which the information relates.

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

Quality control

9.       The information provided by an ADI under this reporting standard must be the product of processes and controls that have been reviewed and tested by the external auditor of the ADI.  AGS 1008 ‘Audit Implications of Prudential Reporting Requirements for Authorised Deposit-taking Institutions’, issued by the Auditing and Assurances Standards Board of the Australian Accounting Research Foundation, provides guidance on the scope and nature of the review and testing required from external auditors.  This review and testing must be done on an annual basis or more frequently if necessary to enable the external auditor to form an opinion on the accuracy and reliability of the data.

10.     The information provided by an ADI under this reporting standard must also be subject to processes and controls developed by the ADI for the internal review and authorisation of that information. It is the responsibility of the board and senior management of the ADI to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.

Authorisation

11.     If an ADI submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the ADI 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 ADI who have authority from the ADI to transmit the data to APRA.

12.     If information provided under this reporting standard is provided in paper form, it must be signed by either:

(a)      the Principal Executive Officer of the ADI; or

(b)     the Chief Financial Officer of the ADI (by whatever name called).

Minor alterations to forms and instructions

13.     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.

14.     If APRA makes such a variation it must notify an affected ADI in writing.

Transitional

15.     If a reporting period of a relevant ADI ended on 30 June 2005, or ends after that date, the ADI must report under this reporting standard in respect of that reporting period.

Interpretation - classifications of ADIs

16.     In this reporting standard:

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

ADI list means the attached ADI list.

building society means an ADI whose name appears under the heading ‘Building Societies’ in the ADI list.

credit union means an ADI whose name appears under the heading ‘Credit Unions’ in the ADI list.

Monetary Aggregates Reporter means a relevant ADI in respect of which:

(a)APRA has made a determination in writing that the ADI has had assets of more than $50 million for at least three consecutive quarters immediately preceding the determination and has notified the ADI of that determination; and

(b)APRA has not revoked the determination on the ground that, after the making the determination, the value of the ADI’s assets has fallen significantly below $50 million.

relevant ADI means an ADI covered by paragraph 2 of this reporting standard.

specialist credit card institution means an ADI whose name appears under the heading ‘Specialist Credit Card Institutions (SCCIs)’ in the ADI list.

17.     If an ADI is not listed in the ADI list, then:

(a)      if the ADI assumes or uses the expression ‘building society’ in relation to its financial business, it is taken to be a building society for the purposes of reporting this reporting standard;

(b)     if the ADI assumes or uses the expression ‘credit union’, ‘credit society’ or ‘credit co-operative’ in relation to its financial business, it is taken to be a credit union for the purposes of this reporting standard; and

(c) if the ADI engages in credit card issuing or credit card acquiring, or both, and does not otherwise carry on banking business within the meaning of section 5 of the Banking Act 1959, it is taken be a specialist credit card institution for the purposes of this reporting standard.

18.     APRA may in writing determine that an ADI is taken to be a building society, credit union or specialist credit card institution for the purposes of this reporting standard (even if, under paragraph 16 or 17, it comes within a different classification).

Interpretation - other definitions

19.     In this reporting standard:

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

Principal Executive Officer means the principal executive officer of the ADI 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.

reporting period means a reporting period referred to in paragraph 5 or, if appropriate, paragraph 6.

The ADI list

Australian-owned Banks

·        Adelaide Bank Limited

·        AMP Bank Limited

·        Australia and New Zealand Banking Group Limited

·        Bank of Queensland Limited

·        Bendigo Bank Limited

·        Commonwealth Bank of Australia

·        Commonwealth Development Bank of Australia Limited (a subsidiary of Commonwealth Bank of Australia)

·        Elders Rural Bank Limited

·        Macquarie Bank Limited

·        Members Equity Bank Pty Limited

·        National Australia Bank Limited

·        St George Bank Limited

·        Suncorp-Metway Limited

·        Westpac Banking Corporation

Foreign Subsidiary Banks

·        Arab Bank Australia Limited

·        Bank of Cyprus Australia Pty Limited

·        BankWest (the trading name of Bank of Western Australia Limited, a foreign subsidiary bank following its sale to Bank of Scotland in December 1995)

·        Citibank Pty Limited (a subsidiary of Citibank N.A.)

·        HSBC Bank Australia Limited

·        ING Bank (Australia) Limited

·        Investec Bank (Australia) Limited

·        Laiki Bank (Australia) Limited

·        NM Rothschild & Sons (Australia) Limited

·        Rabobank Australia Limited (a subsidiary of Rabobank Nederland from October 1994)

Branches of Foreign Banks

·        ABN AMRO Bank N.V.

·        Bank of America, National Association

· Bank of China (subject to depositor protection provisions of the Banking Act 1959)

·        Bank of Tokyo-Mitsubishi, Ltd

·        Barclays Capital (the trading name of Barclays Bank plc)

·        BNP Paribas

·        Citibank N.A.

·        Credit Suisse

·        Deutsche Bank AG

·        HSBC Bank plc

·        ING Bank NV

·        JPMorgan Chase Bank, National Association

·        Mizuho Corporate Bank, Ltd

·        Oversea-Chinese Banking Corporation Limited

·        Rabobank Nederland (the trading name of Co-operative Central Raiffeisen-Boerenleenbank B.A.)

·        Royal Bank of Canada

·        Société Générale

·        Standard Chartered Bank

·        State Bank of India

·        State Street Bank and Trust Company

·        The International Commercial Bank of China

·        The Royal Bank of Scotland Plc

·        The Toronto-Dominion Bank

·        Taiwan Business Bank

·        UBS AG

·        United Overseas Bank Limited

·        WestLB AG

Building Societies

·        ABS Building Society Ltd

·        B & E Ltd

·        Greater Building Society Ltd

·        Heritage Building Society Limited

·        Home Building Society Ltd

·        Hume Building Society Ltd

·        IMB Ltd

·        Lifeplan Australia Building Society Limited

·        Mackay Permanent Building Society Ltd

·        Maitland Mutual Building Society Limited

·        Newcastle Permanent Building Society Ltd

·        Pioneer Permanent Building Society Limited

·        The Rock Building Society Limited

·        Wide Bay Australia Ltd

Credit Unions

·        Amcor Credit Co-operative Limited

·        AMP Employees' & Agents Credit Union Limited

·        Austral Credit Union Limited

·        Australian Central Credit Union Limited

·        Australian Defence Credit Union Ltd

·        Australian National Credit Union Limited

·        AWA Credit Union Limited

·        Bananacoast Community Credit Union Ltd

·        Bankstown City Credit Union Ltd

·        Berrima District Credit Union Ltd

·        Big River Credit Union Ltd

·        Big Sky Credit Union Ltd

·        Blue Mountains and Riverlands Community Credit Union Ltd

·        Broadway Credit Union Ltd

·        Calare Credit Union Ltd

·        Capital Credit Union Ltd

·        Capricornia Credit Union Ltd

·        Carboy (SA) Credit Union Limited

·        Central Murray Credit Union Limited

·        Central West Credit Union Limited

·        Circle Credit Co-operative Limited

·        Coastline Credit Union Limited

·        Collie Miners Credit Union Ltd

·        Combined Australian Petroleum Employees' Credit Union Ltd

·        Community Alliance Credit Union Limited

·        Community First Credit Union Limited

·        Companion Credit Union Limited

·        Comtax Credit Union Limited

·        Connect Credit Union of Tasmania Limited

·        Country First Credit Union Ltd

·        CPS Credit Union (SA) Ltd

·        CPS Credit Union Co-operative (ACT) Limited

·        Credit Union Australia Ltd

·        Credit Union Home Loans Australia Limited

·        Credit Union Incitec Pivot Limited

·        Croatian Community Credit Union Limited

·        CSR and Rinker Employees Credit Union Limited

·        Dairy Farmers Credit Union Ltd

·        Dana Employees Credit Union

·        Defence Force Credit Union Limited

·        Discovery Credit Union Ltd

·        Dnister Ukrainian Credit Co-operative Limited

·        ELCOM Credit Union Ltd

·        Electricity Credit Union Ltd

·        Encompass Credit Union Limited

·        Ericsson Employees Credit Co-operative Limited

·        Esso Employees' Credit Union Ltd

·        Eurobodalla Credit Union Ltd

·        Family First Credit Union Limited

·        Fire Brigades Employees' Credit Union Limited

·        Fire Service Credit Union Limited

·        Firefighters & Affiliates Credit Co-operative Limited

·        First Pacific Credit Union Limited

·        Fitzroy & Carlton Community Credit Co-operative Limited

·        Flying Horse Credit Union Co-operative Limited

·        Ford Co-operative Credit Society Limited

·        Gateway Credit Union Ltd

·        Geelong & District Credit Co-operative Society Limited

·        GMH (Employees) Q.W.L. Credit Co-operative Limited

·        Goldfields Credit Union Ltd

·        Gosford City Credit Union Ltd

·        Goulburn Murray Credit Union Co-operative Limited

·        H.M.C. Staff Credit Union Ltd

·        Heritage Isle Credit Union Limited

·        Hibernian Credit Union Limited

·        Holiday Coast Credit Union Ltd

·        Horizon Credit Union Ltd

·        Hoverla Ukrainian Credit Co-operative Ltd

·        Hunter Mutual Limited

·        Hunter United Employees' Credit Union Limited

·        Industries Mutual Credit Union Limited

·        Intech Credit Union Limited

·        Island State Credit Union Ltd

·        Karpaty Ukrainian Credit Union Limited

·        La Trobe Country Credit Co-operative Limited

·        La Trobe University Credit Union Co-operative Limited

·        Laboratories Credit Union Ltd

·        Latvian Australian Credit Co-operative Society Limited

·        Lithuanian Co-operative Society (Talka) Limited

·        Lysaght Credit Union Ltd

·        M.S.B. Credit Union Limited

·        MacArthur Credit Union Ltd

·        Macaulay Community Credit Co-operative Limited

·        Macquarie Credit Union Limited

·        Maleny and District Community Credit Union Limited

·        Manly Warringah Credit Union Ltd

·        Maritime Workers of Australia Credit Union Ltd

·        Maroondah Credit Union Ltd

·        MECU Limited

·        Media Credit Union Queensland Ltd

·        Melbourne University Credit Union Limited

·        Memberfirst Credit Union Limited

·        N.R.M.A. Employees' Credit Union Ltd

·        NACOS Credit Union Limited

·        New England Credit Union Ltd

·        Newcom Colliery Employees' Credit Union Ltd

·        North East Credit Union Co-operative Limited

·        Northern Inland Credit Union Ltd

·        Nova Credit Union Limited

·        NSW Teachers Credit Union Ltd

·        Old Gold Credit Union Co-operative Limited

·        Orana Credit Union Ltd

·        Orange Credit Union Limited

·        Phoenix (NSW) Credit Union Ltd

·        Pinnacle Credit Union Limited

·        Plenty Credit Co-operative Limited

·        Police & Nurses Credit Society Limited

·        Police Association Credit Co-operative Limited

·        Police Credit Union Limited

·        Polish Community Credit Union Ltd

·        Power Credit Union Limited

·        Powerstate Credit Union Ltd

·        Prospect Credit Union Limited

·        Pulse Credit Union Limited

·        Qantas Staff Credit Union Limited

·        Queensland Community Credit Union Limited

·        Queensland Country Credit Union Ltd

·        Queensland Police Credit Union Limited

·        Queensland Professional Credit Union Ltd

·        Queensland Teachers' Credit Union Limited

·        Queenslanders Credit Union Limited

·        RACV Credit Union Limited

·        Railways Credit Union Limited

·        Randwick Credit Union Limited

·        RegionalOne Credit Union Limited

·        Reliance Credit Union Ltd

·        Resources Credit Union Limited

·        RTA Staff Credit Union Limited

·        Satisfac Direct Credit Union Limited

·        Savings and Loans Credit Union (S.A.) Ltd

·        Security Credit Union Ltd

·        Select Credit Union Ltd

·        Service One Credit Union Ltd

·        SGE Credit Union Ltd

·        Shell Employees' Credit Union Limited

·        Shoalhaven Paper Mill Employee's Credit Union Ltd

·        South West Slopes Credit Union Ltd

·        Southern Cross Credit Union Limited

·        South-West Credit Union Co-operative Limited

·        St Mary's Swan Hill Co-operative Credit Society Limited

·        St Patrick's Mentone Co-operative Credit Society Limited

·        Statewest Credit Society Limited

·        Sutherland Credit Union Ltd

·        Sutherland Shire Council Employees' Credit Union Ltd

·        Sydney Credit Union Ltd

·        TAB Credit Union Limited

·        Tartan Credit Union Ltd

·        The Broken Hill Community Credit Union Ltd

·        The Gympie Credit Union Ltd

·        The Police Department Employees' Credit Union Limited

·        The Summerland Credit Union Limited

·        The TAFE and Community Credit Union Limited

·        The University Credit Society Limited

·        Traditional Credit Union Limited

·        TransComm Credit Co-operative Limited

·        Uni Credit Union Ltd

·        United Credit Union Limited

·        Victoria Teachers Credit Union Limited

·        Wagga Mutual Credit Union Ltd

·        Warwick Credit Union Ltd

·        WAW Credit Union Co-operative Limited

·        Westax Credit Society Ltd

·        Western City Credit Union Ltd

·        Woolworths/Safeway Employees' Credit Co-operative Limited

·        Wyong Council Credit Union Ltd

·        Yennora Credit Union Ltd

Specialist Credit Card Institutions (SCCIs)

Foreign-owned SCCIs

·        GE Capital Finance Australia

·        GE Finance Australasia Pty Ltd

Locally Incorporated SCCIs

·        MoneySwitch Limited

Other ADIs

These companies are run by industry bodies and provide services (e.g. payments clearing) to member building societies and credit unions.

·        Australian Settlements Limited

·        Credit Union Services Corporation (Australia) Limited

·        Creditlink Services Limited

One ADI that provides general banking services which does not fall into the other categories.

·        Cairns Penny Savings & Loans Limited

Reporting Form ARF 323.0

Statement of Financial Position (Licensed ADI)

Instruction Guide

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

If the ADI has material business, operations or dealings outside of Australia or with non-residents, then the institution will be required to complete ARF 320.0 Statement of Financial Position (Domestic Books) and ARF 321.0 Statement of Financial Position (Offshore Operations), instead of this form.

General directions and notes

Reporting entity

ARF 323.0 Statement of Financial Position (Licensed ADI) should be completed by Credit Unions, Building Societies, Cairns Penny Savings & Loans Limited and Specialist Credit Card Institutions (SCCIs) on a Licensed ADI basis. SCCIs that operate as branches in Australia are required to complete this form for the Australian branch only.

Licensed ADI

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

Reporting period

If the Credit Union, Building Society or SCCI is a Monetary Aggregates Reporter (broadly, it has total assets greater than or equal to $50 million), this form is to be completed as at the last day of the reporting month. The completed form must be submitted to APRA within 10 business days after the end of the relevant reporting month. In addition, this form is also to be completed as at the last day of the stated reporting quarter (i.e. September, December, March and June). The completed form must be submitted to APRA within 15 business days after the end of the relevant reporting quarter.

If the Credit Union or Building Society or Cairns Penny Savings & Loans Limited or SCCI is not a Monetary Aggregates Reporter, this form is to be completed as at the last day of the stated reporting quarter (i.e. September, December, March and June). The completed form must be submitted to APRA within 15 business days after the end of the relevant reporting quarter.

Unit of measurement

Credit Unions, Building Societies, Cairns Penny Savings & Loans Limited and SCCIs are asked to complete the form in whole Australian dollars (no decimal place).

Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 1012 ‘Foreign Currency Translation’.

The general requirements of AASB 1012 for translation are:

1.      Foreign currency monetary items outstanding at the reporting date must be translated at the spot rate at the reporting date; and

2.      Other items outstanding at the reporting date must not be retranslated subsequent to initial recognition of the transaction.

Monetary items are defined to mean money held and assets and liabilities that are to be received or paid in fixed or determinable amounts of money.

Monetary items arising under foreign currency derivative contracts at the reporting date must be translated as follows:

·        Where the exchange rate is fixed in the contract, at that fixed exchange rate; and

·        Where the exchange rate varies, at the spot rate at the reporting date.

Netting

Unless otherwise specifically stated, institutions are allowed to take advantage of netting agreements in relation to disclosure of data items in this form. Institutions are to comply with the prerequisite for netting outlined in Australian accounting standards AASB 1014 ‘Set-off and Extinguishment of Debt’ and AASB 1033 ‘Presentation and Disclosure of Financial Instruments’.

Term to maturity

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

Basis of preparation

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

·        Interpretation/definition of specific asset, liability and equity items;

·        Appropriate measurement basis for asset, liability and equity items; and

·        Netting of financial assets and financial liabilities.

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

Specific instructions

Section A: Assets

1.      Cash and liquid assets

Generally include the following in this category:

·        Australian notes and coins;

·        Foreign currency;

·        Cash at branches;

·        Cash at bankers;

·        Deposits at call;

·        Money at short call;

·        Exchange settlement accounts;

·        Securities purchased under agreement to resell;

·        Margin deposit accounts; and

·        Gold bullion.

Exclude the following from this reporting category:

·        Bills of exchange (reported as either 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.     Registered financial corporations

Include all deposits with Registered Financial Corporations 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 clearinghouses such as the ASXCH and SFECH in Australia.

1.5.   Securities purchased under agreements to resell

Treatment is to be consistent with International Accounting Standard 39. 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 borrowing activities (treating stock borrowing as on balance sheet exposures). Securities purchased under agreements to resell, represents the receivable due from counterparties from whom the stock has been borrowed and with whom cash has been lodged.  Under this method of accounting the banks physical stock positions recorded on the balance sheet in either Trading Securities or Investment Securities sections is not affected.

1.6.   Due from financial institutions

Generally include the following in this reporting category:

·        settlement account balances – Austraclear  and 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;

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

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

·        margin deposit accounts with brokers.

Exclude the following from this reporting category:          

·        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 1014 and AASB 1033.

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

1.6.1.     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 Reserve Bank of Australia or any foreign central bank should also be reported in this data item.

1.6.2.     Due from banks

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

1.6.3.     Due from other ADIs

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

1.6.4.     Due from registered financial corporations

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

1.6.5.     Due from other financial institutions

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

1.7.   Total cash and liquid assets

Sum all cash and liquid assets reporting items above.

2.       Trading securities

·        Trading securities are defined in accordance with AASB 1032 ‘Specific Disclosures by Financial Institutions’.

·        Trading securities are recorded at net fair value, which is defined in accordance with AASB 1032.

·        Interest earned on trading securities is reported as Interest Income in ARF 330.0 Statement of Financial Performance and ARF 330.1 Interest Income and Interest Expense. Dividends received are viewed as dividend income and accordingly, are to be classified as Other Operating Income in ARF 330.2 Other Operating Income.

·        All gains and losses, realised and unrealised are reported in net trading income in ARF 330.2 Other Operating Income.

·        Report short sold positions as a negative asset against the appropriate debt or equity security item.

·        Include all securities (stock) lent or sold under repurchase agreements.  The payable due to counterparties with whom the stock has been lent or sold and from whom cash has been lodged is recorded in Securities sold under agreements to repurchase.

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

·        Loans and advances” should not be affected by the reporting of “Securities lent or sold under repurchase agreements

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

Debt securities

Include all debt securities consistent with the classification and measurement basis used for Trading Securities by institutions in accordance with AASB 1032.

2.1.   Australian Commonwealth government securities

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

2.2.   Other Australian government securities

Include debt securities issued by Australian State & Territory Governments and Australian State & Territory central borrowing authorities. Do not include securities issued by Australian State & Territory Government business enterprises.

2.3.   Bank debt securities

Include debt securities that have been issued by banks (e.g. Negotiable certificates of deposits; Transferable certificates of deposits; Medium term notes; Debentures; Unsecured notes).

2.4.   Other ADI debt securities

Include debt securities that have been issued by ADIs other than banks (e.g. Negotiable certificates of deposits; Transferable certificates of deposits; Medium term notes; Debentures; Unsecured notes).

2.5.   Corporate paper

Include debt securities that have been issued by corporate entities other than banks and other ADIs.

2.6.   Asset backed debt securities

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

2.7.   Other debt securities

2.8.   Equity securities

Include all equity trading securities consistent with the classification and measurement basis used for Trading Securities by institutions in accordance with AASB 1032.

2.9.   Total trading securities

Sum all “Trading securities” reporting items.

3.       Investment securities

·        Investment securities are those securities, which are not Trading Securities (as defined in accordance with AASB 1032). 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).

·        ADI’s strategic investment in the equity securities of entities that are deemed to be controlled entities, associates or joint ventures, defined in accordance with AASB 1024 ‘Consolidated Accounts’, AASB 1016 ‘Accounting for Investments in Associates’ and AASB 1006 ‘Interests in Joint Ventures’), are to be disclosed in “Other Investments” in ARF 320.0 Statement of Financial Position (Domestic Books) (same for ARF 322.0 Statement of Financial Position (Consolidated)).

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

·        Interest earned on trading securities is reported as Interest Income in ARF 330.1 Interest Income and Interest Expense.

·        Dividends received on equity securities are viewed as dividend income and accordingly, are to be classified as Other Operating Income in ARF 330.2 Other Operating Income.

·        All realised gains and losses are reported in “Gain on Sale” income in ARF 330.2 Other Operating Income.

·        Include all securities (stock) lent or sold under repurchase agreements.  The payable due to counterparties with whom the stock has been lent or sold and from whom cash has been lodged is recorded in Securities sold under agreements to repurchase.

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

·        Loans and advances” should not be affected by the reporting of “Securities lent or sold under repurchase agreements

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

Debt securities

Include all debt securities, consistent with the classification and measurement basis used for Investment Securities by institutions.

3.1.   Australian Commonwealth government securities

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

3.2.   Other Australian government securities

Include debt securities issued by Australian State & Territory Governments and Australian State & Territory central borrowing authorities. Do not include securities issued by Australian State & Territory Government business enterprises.

3.3.   Bank debt securities

Include debt securities that have been issued by banks (e.g. Negotiable certificates of deposits; Transferable certificates of deposits; Medium term notes; Debentures; Unsecured notes).

3.4.   Other ADI debt securities

Include debt securities that have been issued by ADIs other than banks (e.g. Negotiable certificates of deposits; Transferable certificates of deposits; Medium term notes; Debentures; Unsecured notes).

3.5.   Corporate paper

Include debt securities that have been issued by corporate entities other than banks and other ADIs.

3.6.   Asset backed debt securities

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

3.7.   Other debt securities

Equity securities

Include all equity securities consistent with the classification used for Investment Securities by institutions.

3.8.   Banks and other ADI equity securities

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

Exclude: equity investments in “Parent Entity” or “Controlled Entities” or “Associates”. These investments are to be reported in the classification “Other Investments”.

3.9.   Insurance corporations

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

Exclude: equity investments in “Parent Entity”, “Controlled Entities” or “Associates”. These investments are to be reported in the classification “Other Investments”.

3.10.  Other

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

Exclude: equity investments in “Parent Entity”, “Controlled Entities” or “Associates”. These investments are to be reported in the classification “Other Investments”.

3.11.  Total investment securities

Sum all “Investment securities” reporting items.

4.       Other deposits

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

4.1.   Banks

4.2.   Other ADIs

4.3.   Other

4.4.   Total other deposits

5. Acceptances of customers

Total acceptances of customers – net

Acceptances comprise undertakings by an ADI to pay bills of exchange drawn on customers. These bills of exchange are not held as part of the ADI’s asset portfolio. Acceptances are accounted for and disclosed as a liability with a corresponding contra asset. The contra asset is recognised to reflect the ADI’s claim against each drawer of the bills of exchange.

Bills of exchange that have been accepted and held in an ADI’s asset portfolio should be excluded from this item. Include these holdings of own acceptances under either 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.

6. Loans and advances

Note: Loans and advances are investments of the ADI generally include:

·        Overdrafts;

·        Secured and unsecured lending;

·        Financial lease agreements;

·        Account balances which do not qualify as deposits;

·        Credit card outstanding balances;

·        Term loans;

·        Mortgage lending;

·        Commercial loans;

·        Equity participation in leveraged leases;

·        Redeemable preference share finance;

·        Subordinated loans; and

·        Loans to controlled entities, associates and joint ventures.

Loans and advances are recognised at recoverable amount, after assessing required provisions for impairment.

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 provisions and general provisions for products and counterparties where indicated in the form are to be reported only if the data is already recorded and allocated on that basis by the institution. Otherwise the specific provision and general provision can be disclosed in aggregate.

Do not include associated future income tax benefits (FITB) in the amounts reported for general provisions or specific provisions.  Include associated FITB in 'Other Assets - Future income tax benefits - Provisions for doubtful debts'.

6.1.   Loans to households

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

Exclude:

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

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

·        Include the value of housing loans to Australian householders, for the construction or purchase of dwellings for owner occupation.

·        Include 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.

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

Report the specific provision for doubtful debts applied to this loan item. Where an ADI adopts a standardised approach under APS 220 Credit Quality (paragraph 11), as described in AGN 220.3 Prescribed Provisioning, the value of the prescribed provision should also be included here.

6.1.1.1.    Housing: Owner occupied – General provisions (3)

Report the general provision for doubtful debts applied to this loan item if already recorded/allocated by the institution, otherwise leave blank.

6.1.1.1.1.   Housing: Owner-occupied – of which revolving credit secured by residential mortgage – Gross of specific provisions (1)

·        Of the total reported for “Housing: Owner occupied” identify the component that is revolving credit facilities secured by residential mortgage.

·        This reporting item should be reported gross of any specific provisions.

6.1.1.2.    Housing: Investment – Balance outstanding (1)

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

·        Include 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.

6.1.1.2.    Housing: Investment – Specific provisions (2)

Report the specific provision for doubtful debts applied to this loan item. Where an ADI adopts a standardised approach under APS 220 Credit Quality (paragraph 11), as described in AGN 220.3 Prescribed Provisioning, the value of the prescribed provision should also be included here.

6.1.1.2.    Housing: Investment – General provisions (3)

Report the general provision for doubtful debts applied to this loan item if already recorded/allocated by the institution, otherwise leave blank.

6.1.1.2.1.   Housing: Investment – of which revolving credit secured by residential mortgage – Gross of specific provisions (1)

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

·        This reporting item should be reported gross of any specific provisions.

6.1.2.     Revolving credit – Balance outstanding (1)

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

·        Revolving credit is a loan arrangement in which the borrowing party may repay funds on loan and immediately borrow it again up to an agreed limit.

·        This reporting item should be reported gross of any specific provisions.

6.1.2.     Revolving credit – Specific provision (2)

Report the specific provision for doubtful debts applied to this loan item, if this is recorded or allocated by the institution on this basis. Where an ADI adopts a standardised approach under APS 220 Credit Quality (paragraph 11), as described in AGN 220.3 Prescribed Provisioning, the value of the prescribed provision should also be included here.

6.1.2.     Revolving credit – General provision (3)

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

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

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

·        This reporting item should be reported gross of any specific provisions.

6.1.3.     Credit cards – Balance outstanding (1)

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

·        This reporting item should be reported gross of any specific provisions.

6.1.3.     Credit cards – Specific provision (2)

Report the specific provision for doubtful debts applied to this loan item, if this is recorded or allocated by the institution on this basis. Where an ADI adopts a standardised approach under APS 220 Credit Quality (paragraph 11), as described in AGN 220.3 Prescribed Provisioning, the value of the prescribed provision should also be included here.

6.1.3.     Credit cards – General provision (3)

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

6.1.4.     Leasing – Balance outstanding (1)

·        Include the gross value of lease financing to Australian householders.

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

6.1.4.     Leasing – Specific provision (2)

Report the specific provision for doubtful debts applied to this loan item, if this is recorded or allocated by the institution on this basis. Where an ADI adopts a standardised approach under APS 220 Credit Quality (paragraph 11), as described in AGN 220.3 Prescribed Provisioning, the value of the prescribed provision should also be included here.

6.1.4.     Leasing – General provision (3)

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

6.1.5.     Other personal term loans – Balance outstanding (1)

Include the gross value of personal term loans to Australian householders for purposes other than housing and other than revolving credit, credit card and lease financing.

This reporting item should be reported gross of any specific provisions.

6.1.5.     Other personal term loans – Specific provisions (2)

Report the specific provision for doubtful debts applied to this loan item, if this is recorded or allocated by the institution on this basis. Where an ADI adopts a standardised approach under APS 220 Credit Quality (paragraph 11), as described in AGN 220.3 Prescribed Provisioning, the value of the prescribed provision should also be included here.

6.1.5.     Other personal term loans – General provision (3)

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

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

·        Of the total reported for “Other personal term loans” identify the component that has a fixed interest rate. 

·        This reporting item should be reported gross of any specific provisions.

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

Report the specific provision for doubtful debts applied to this loan item, if this is recorded or allocated by the institution on this basis. Where an ADI adopts a standardised approach under APS 220 Credit Quality (paragraph 11), as described in AGN 220.3 Prescribed Provisioning, the value of the prescribed provision should also be included here.

6.1.5.1.    Other personal term loans of which fixed interest rate – General provisions (3)

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

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

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

·        Include the gross value of variable rate term loans to Australian householders for purposes other than housing and other than revolving credit, credit card and lease financing.

·        This reporting item should be reported gross of any specific provisions.

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

Report the specific provision for doubtful debts applied to this loan item, if this is recorded or allocated by the institution on this basis. Where an ADI adopts a standardised approach under APS 220 Credit Quality (paragraph 11), as described in AGN 220.3 Prescribed Provisioning, the value of the prescribed provision should also be included here.

6.1.5.2.    Other personal term loans of which variable rate – General provisions (3)

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

6.1.6.     Total loans to households – Balance outstanding (1)

·        Sum the gross value of loans to Australian householders.

·        This reporting item should be reported gross of any specific provisions.

6.1.6.     Total loans to households – Specific provisions (2)

Report the specific provisions applying to loans to Australian householders. Where an ADI adopts a standardised approach under APS 220 Credit Quality (paragraph 11), as described in AGN 220.3 Prescribed Provisioning, the value of the prescribed provision should also be included here.

6.1.6.     Total loans to households – General provisions (3)

Report the general provision for this reporting line.

6.2.   Commercial lending

Loans to public and private trading corporations

·        Private trading corporations

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

Include:

·        All resident private corporate trading enterprises;

·        Intra-group financiers (Financial Sector (Collection of Data) Act 2001 Category I) and parent companies with significant holdings of shares in private trading companies;

·        Privately owned schools and hospitals;

·        Any unincorporated unit that is a branch in Australia of a non-resident company and which is not included in the financial sector; and

·        Any unincorporated business owned and operated by trading corporations (e.g. joint ventures).

Exclude:

·        Unincorporated businesses, except for branches of non-resident companies and joint ventures or partnerships owned by corporations; and

·        Non-resident enterprises.

·        Public non-financial corporations

Commonwealth, state, territory and local government

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

Include:

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

Exclude:

·        Government departments (show as Commonwealth general government);

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

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

·        State and territory central borrowing authorities,

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

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

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

Report the specific provision for doubtful debts applied to this loan item. Where an ADI adopts a standardised approach under APS 220 Credit Quality (paragraph 11), as described in AGN 220.3 Prescribed Provisioning, the value of the prescribed provision should also be included here.

6.2.1.     Loans to public and private trading corporations – General provision (3)

Report the specific provision for doubtful debts applied to this loan item.

Loans to unincorporated business and community service organisations (CSO)/non-profit institutions serving households

·        Private unincorporated businesses

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

·        Community service organisations

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

·        Charities and aid organisations financed by voluntary transfers

Exclude:

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

6.2.2.     Loans to unincorporated business and community service organisations (CSO) – Balance outstanding (1)

·        Include the total gross value of loans to Australian community service organisations and unincorporated businesses. 

·        This reporting item should be reported gross of any specific provisions.

6.2.2.     Loans to unincorporated business and community service organisations (CSO) – Specific provisions (2)

Report the specific provision for doubtful debts applied to this loan item. Where an ADI adopts a standardised approach under APS 220 Credit Quality (paragraph 11), as described in AGN 220.3 Prescribed Provisioning, the value of the prescribed provision should also be included here.

6.2.2.     Loans to unincorporated business and community service organisations (CSO) – General provisions (3)

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

Loans to ADIs and other financial institutions

Include:

·        treasury related short-term lending to other banks;

·        corporate banking customer relationship lending to other financial institutions;

·        loans and advances to other banks;

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

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

This reporting item should be brought to account at the gross value of the outstanding balance. Interest is taken to profit and loss when earned.

Include the following counterparties:

Reserve Bank of Australia

The Reserve Bank of Australia 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 the Australian Prudential Regulation Authority (APRA).

Banks

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

Include:

·        Development banks; and

·        Foreign banks licensed to operate in Australia under the Banking Act 1959.

Exclude:

·        Merchant banks (record as non-bank financial intermediaries); and

·        Non-resident banks (report as non-resident counterparties).

Other ADIs

Other ADIs (Authorised Deposit-taking Institutions) 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 to use the word bank.

Registered financial corporations

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

Include:

·        Money market corporations (also referred to as “merchant banks”) (D);

·        Pastoral finance companies, Finance companies and General financiers (Other); and 

·        Cash management trusts.

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

Exclude:

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

Central borrowing authorities

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

Include:

·        New South Wales Treasury Corporation (NSW TCorp);

·        Treasury Corporation of Victoria (TCV);

·        Queensland Treasury Corporation (QTC);

·        South Australian Government Financing Authority (SAFA);

·        Western Australian Treasury Corporation (WATC);

·        Tasmanian Public Finance Corporation (Tas Corp);

·        Northern Territory Treasury Corporation (NT TCorp); and

·        ACT Treasury.

Financial auxiliaries

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

Include:

·        fund managers as principal;

·        stockbrokers; and

·        insurance brokers.

Financial intermediaries

Securitisers

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

Unit trusts

Include:

·        Mortgage, fixed interest and equity unit trusts. 

Exclude:

·        Cash management trusts: include in Registered Financial Corporations; and

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

Other financial intermediaries

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

Include:

·        Economic development corporations owned by governments;

·        Co-operative housing societies;

·        Investment companies; and

·        Common funds including cash common funds.

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

Include the gross value of loans to ADIs and other financial Institutions. This reporting item should be reported gross of any specific provisions.

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

Report the specific provision for doubtful debts applied to this loan item. Where an ADI adopts a standardised approach under APS 220 Credit Quality (paragraph 11), as described in AGN 220.3 Prescribed Provisioning, the value of the prescribed provision should also be included here.

6.2.3.     Loans to ADIs and other financial Institutions – General provisions (3)

Report the general provision for this reporting item, if this recorded or allocated by the institution on this basis.

Loans to government (All levels of Australian government)

Include:

·        Overdrafts;

·        Secured and unsecured borrowings;

·        Financial lease agreements;

·        Account balances which do not qualify as deposits;

·        Credit card outstanding balances; and

·        Term loans.

Loans and advances are recognised at recoverable amount, after assessing required provisions for impairment.

Commonwealth general government

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

Include:

·        Departments and agencies such as Department of Finance, Department of Defence, ABC, SBS, Australian Film Commission and CSIRO;

·        Commonwealth government unincorporated enterprises which provide goods and services to the Commonwealth government and/or to the public for free or at prices that are not economically significant (e.g. government employee cafeterias, munitions factories);

·        Non-profit institutions controlled and mainly financed by the Commonwealth government;

·         Commonwealth government quasi-corporations which sell their output, at near market prices, exclusively to other government units (e.g. government printers and defence force housing schemes); and

·         Public universities.

Exclude:

·        Government trading enterprises such as 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

·        Reserve Bank of Australia and Commonwealth Government financial institutions such as AIDC and EFIC (record as financial institutions as appropriate).

State, territory and local general government

State, territory and local general government provides non-market goods and services principally financed by taxes to regulate economic activity, maintain law and order and to redistribute income and wealth by means of transfers and hence provided free of charge or at nominal prices well below the cost of production.

Include:

·        State and local government unincorporated enterprises which provide goods and services to their government and/or to the public for free or at prices that are not economically significant (e.g. government employee cafeterias, municipal swimming pools);

·        Non-profit institutions controlled and mainly financed by state and local government;

·        State government quasi-corporations which sell their output, at near market prices, exclusively to other government units (e.g. government printers);

·        ACT and Northern Territory Government departments and agencies; and

·        State schools, technical and further education colleges and state owned hospitals.

Exclude:

·        All state and local government trading enterprises and financial enterprises (e.g. rail, and municipal water authorities); and

·        State and territory central borrowing authorities.

6.2.4.     Loans to government – Balance outstanding (1)

Include the gross value of loans to Australian Commonwealth government. This reporting item should be reported gross of any specific provisions.

6.2.4.     Loans to government – Specific provision (2)

If applicable sum the specific provisions applying to loans to Australian government bodies. Where an ADI adopts a standardised approach under APS 220 Credit Quality (paragraph 11), as described in AGN 220.3 Prescribed Provisioning, the value of the prescribed provision should also be included here.

6.2.5.     Total commercial lending – Balance outstanding (1)

·        Sum the gross value of commercial lending.

·        This reporting item should be reported gross of any specific provisions.

6.2.5.     Total commercial lending – Specific provision (2)

Report the aggregate specific provisions applying to commercial lending. Where an ADI adopts a standardised approach under APS 220 Credit Quality (paragraph 11), as described in AGN 220.3 Prescribed Provisioning, the value of the prescribed provision should also be included here.

6.2.5.     Total commercial lending – General provision (3)

Report the aggregate general provision for this reporting line.

6.2.5.1.    Total commercial lending of which: Revolving credit

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

A revolving credit is a loan arrangement in which the borrowing party may repay funds on loan and immediately borrow it again up to an agreed limit. This reporting item should be reported gross of any specific provisions.

6.2.5.2.    Total commercial lending of which: Credit cards

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

6.2.5.3.    Total commercial lending of which: Term loans – fixed rate

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

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

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

6.2.5.5.    Total commercial lending of which: Leasing

Include the gross value of lease financing to counterparties.

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

6.2.5.6.    Total commercial lending of which: Other loans

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

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

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

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

Record the specific provisions applying to the total loan portfolio. Where an ADI adopts a standardised approach under APS 220 Credit Quality (paragraph 11), as described in AGN 220.3 Prescribed Provisioning, the value of the prescribed provision should also be included here.

6.3.   Total gross loans and advances – General provision (3)

Record the general provisions applying to the total loan portfolio.

6.3.1.     Total gross loans and advances of Which: Margin lending

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

6.3.2.     Total gross loans and advances of Which: Loans held for sale

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

6.4.   Loans and advances (net of provisions for impairment)

Subtract “general provisions for doubtful debts” and “specific provisions for doubtful debts” from “total gross loans and advances”.

7.       Other investments

7.1.   Parent entity

Report the total amount of equity investments in the parent entity defined in accordance with AASB 1024.

7.2.   Controlled entities

Report the total amount of equity investments in controlled entities defined in accordance with AASB 1024.

7.3.   Associates

Report the total amount of equity investments in associates. Defined in accordance with AASB 1016 ‘Accounting for Investments in Associates’.

7.4.   Equity investments in former SSPs

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

7.5.   Joint ventures

Report the total amount of interests in joint ventures (entities) defined in accordance with AASB 1006 ‘Accounting for Interests in Joint Ventures’.

7.6.   Other

Report any other investments not included above.

7.7.   Total other investments

Sum all reporting line items for “Other investments”.

8.       Fixed assets

The reporting of all fixed asset items should be in accordance with applicable Australian accounting standards. Do not include property acquired or held available for sale. These assets are to be disclosed in “Other Assets” category under line item “Property acquired or held available for sale”.

8.1.   Property, plant and equipment

This includes land, buildings, furniture, equipment (excluding Information Technology), re-modeling costs to existing premises, and interest capitalised during the period of construction of buildings.

8.2.   Accumulated depreciation/amortisation - Property, plant and equipment

Report accumulated depreciation/amortisation relating to property, plant and equipment

8.3.   Property, plant and equipment net of accumulated depreciation

8.4.   Information technology

8.4.1.     Information technology - Work in progress (WIP)

8.4.1.1.     Hardware and software application costs 

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

8.4.1.2.     Development and other on costs

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

8.4.1.3.     Information technology - Total WIP

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

8.4.2.     Information technology - In use

8.4.2.1.     Hardware and software application costs 

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

8.4.2.2.     Development and other on costs

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

8.4.2.3.     Information technology - Total in use

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

8.4.3.     Other information technology 

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

8.4.4.     Total information technology (WIP plus In Use plus Other information technology

Sum information technology WIP, In use here and other information technology.

8.5.   Accumulated depreciation/amortisation - Information technology

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

8.6.   Total information technology net of accumulated depreciation/amortisation

8.7.   Other

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

8.8.   Accumulated depreciation/amortisation – Other

Report accumulated depreciation relating to Other.

8.9.   Total Other net of accumulated depreciation/amortisation

Deduct accumulated depreciation/amortisation from the gross values for Other fixed assets.

8.10.  Net fixed assets

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

9.       Intangible assets

The reporting of intangible assets should be in accordance with Australian    accounting pronouncements.

9.1.   Intangible assets

Record the aggregate value of all intangible assets.

9.2.   Accumulated amortisation

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

9.3.   Net Intangible assets

Subtract the “Accumulated amortisation” from the “Intangible assets”.

10.    Other assets

10.1.  Interest receivable

Include interest accrued for but not yet received.

10.2.  Capitalised debt raising/funding costs

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

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

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

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

Report origination fees and commissions deferred. 

10.5.  Other capitalised expenses of a general nature

Report any other capitalised expenses not reported above.

10.6.  Unrealised gains on trading derivatives

Traded derivative financial instruments should be reported at their net   fair value in “Other Assets” when favourable to the reporting entity. These derivative positions may be speculation or hedging physical trading positions/portfolios.

Fair values are obtained from quoted market prices, discount cash flow models and options pricing models.

10.7.  Future income tax benefits

“Future income tax benefits” are to be calculated and recognised in accordance with AASB 1020. The amounts calculated and recognised must be noted separately in the following categories:

10.7.1.     From tax losses

Report all future income tax benefits arising out of tax.

10.7.2.     Provision for doubtful debts

10.7.2.1.    Specific provision for doubtful debts

Report all future income tax benefits associated with specific provision for doubtful debts.

10.7.2.2.    General provision for doubtful debts

Report all future income tax benefits associated with general provision for doubtful debts.

10.7.3.     Other

Report all future income tax benefits other than from tax losses and provision for doubtful debts.

10.8.  Loan/credit card servicing rights

Report the carrying value of purchased loan (e.g. mortgages) and credit card relationships when the reporting entity purchases the right to receive existing loan payments and credit card receivables in consideration for providing lending and credit card services to those customers. Also report any purchased loan/credit card servicing rights arising in the acquisition of an entire financial institution. The carrying value consists of the cost of the servicing right less accumulated amortisation for the right.

10.9.  Property purchased/held for resale

Include all property that has been acquired or is held available for sale. This may include land developments, land and buildings, other property (e.g. motor vehicles).

10.10.  Items in suspense

Report suspense or unreconciled/unidentified transactions/balances here. A list of examples is not provided as these may vary between institutions. It is recommended that the institutions internal procedures be adopted regarding the recording and reporting of these types of balances.

10.11.  Other

Include all other assets not separately identified above.

For example, include:

·        Commodities other than gold bullion;

·        Valuables;

·        Artwork;

·        Other receivables (commissions and fees); and

·        Prepayments.

Exclude:

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

10.12.  Total other assets

Sum all the reporting items listed under “Other assets”.

11.    Total assets

Sum all assets.

11.1.1.     Total assets of which deposits, debt securities and loans to controlled entities and associates – subordinated

·        Report the total amount of investments of a subordinated nature in controlled entities or associates of the reporting entity. Investments in the form of deposits, loans, advances, bonds, notes and debentures should be included where appropriate.

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

11.1.2.     Total assets of which deposits, debt securities and loans to controlled entities and associates – secured

·        Report the total amount of investments of a secured nature in controlled entities or associates of the reporting entity. Investments in the form of deposits, loans, advances, bonds, notes and debentures should be included where appropriate.

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

11.1.3.     Total assets of which deposits, debt securities and loans to controlled entities and associates – other

Report the total amount of investments other than subordinated or secured in nature, in controlled entities or associates of the reporting entity. Investments in the form of deposits, loans, advances, bonds, notes and debentures should be included where appropriate.

11.2.1.     Total assets of which deposits, debt securities and loans to the parent entity – subordinated

·        Report the total amount of investments of a subordinated nature in the parent entity of the reporting entity. Investments in the form of deposits, loans, advances, bonds, notes and debentures should be included where appropriate.

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

11.2.2.     Total assets of which deposits, debt securities and loans to the parent entity – secured

·        Report the total amount of investments of a secured nature in the parent entity of the reporting entity. Investments in the form of deposits, loans, advances, bonds, notes and debentures should be included where appropriate.

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

11.2.3.     Total assets of which deposits, debt securities and loans to the parent entity – other

Report the total amount of investments other than subordinated or secured in nature, in the parent entity of the reporting entity. Investments in the form of deposits, loans, advances, bonds, notes and debentures should be included where appropriate.

12.    Memo items

12.1.  Outstanding value of all assets held at the reporting date that have been securitised

·        Report the outstanding value of assets originated by the ADI and securitised.

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

·        For SCCIs that are acquirers of credit card transactions for merchants, report the total value of chargebacks (transactions charged back to the merchant under card scheme rules as a result of disputes or fraud) paid to card issuers during the reporting period.

Section B: Liabilities

1.       Due to clearing houses

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

2.       Due to financial institutions

Include:

·        settlement account balances – Austraclear, and RITS balances with 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;

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

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

·        Vostro balances from banks and non-bank financial institutions.

This reporting item should be brought to account at the gross value of the outstanding balance. Interest is taken to profit and loss when earned.

2.1.      Due to RBA

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

2.2.      Due to banks

Include settlement account balances due to other Australian resident banks.

2.3.      Due to other ADIs

Include settlement account balances due to other ADIs.

2.4.      Due to registered financial corporations

Include settlement account balances due to Registered Financial Corporations.

2.5.      Due to other financial institutions

Include settlement account balances due to other financial institutions.

2.6.      Total due to financial institutions

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

3.   Acceptances

Acceptances comprise undertakings by an ADI to pay bills of exchange drawn on customers. The ADI expects most acceptances to be presented before being reimbursed by the customers. These bills of exchange are not held as part of the ADI’s asset portfolio. Acceptances are accounted for and disclosed as a liability with a corresponding contra asset. The contra asset is recognised to reflect the ADI’s claim against each drawer of the bills of exchange.

Bills of exchange that have been accepted and held in an ADI’s asset portfolio should be excluded from this item. Include these holdings of own acceptances under either 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.   Deposits

4.1.1.     Deposits: Call/on demand: Transaction accounts

Transaction accounts include the following:

·        Cheque

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

·        Other payment methods

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

All deposits are to be reported net off any setoffs (only if in accordance with AASB 1014).

Exclude from this classification:

·        negotiable and transferable certificates of deposit;

·        subordinated debt issues;

·        subordinated loans;

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

·        Securities sold under agreements to repurchase;

·        treasury related short-term borrowings from other banks; and

·        promissory notes.

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

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

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

Include:

·        All other transaction call deposit accounts from other parties that are not classified as being from households or from banks and other ADIs.

·        $A equivalent of foreign currency deposits

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

Non-transaction accounts include the following:

NOW, Savings and other accounts without any transaction facilities attached (cheque, EFTPOS, ATM).

·        Notice of withdrawal account – a written notice required before funds can be withdrawn or transferred out of the account;

·        Demand deposits;

·        Savings deposits;

·        Money market deposit accounts on a call/demand basis;

·        Other savings deposits on a call/demand basis; and

·        11am accounts and 24-hour money.

Exclude:

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

·        Negotiable and transferable certificates of deposit;

·        Subordinated debt issues;

·        Subordinated loans;

·        Loans due to the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity;

·        Securities sold under agreements to repurchase;

·        Treasury related short-term borrowings from other banks; and

·        Promissory notes.

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

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

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

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

4.2.   Term deposits

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

4.2.1.     Term deposits – Households/retail

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

4.2.2.     Term deposits – Other

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

4.3.   Deposits: Certificates of deposit

Certificates of deposit are negotiable bearer debt securities. They are issued at a discount to the face value and do not require endorsement when sold.

4.4.   Deposits: Retirement saving accounts

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

4.5    Deposits: Other

Record in aggregate all other forms of deposits that are not included in the deposit account classifications noted above. For SCCIs, report all incidental credit balances on credit card accounts within this item (i.e. credit balances arising in the normal course of the SCCI’s credit card operations, such as prepayments by or refunds to credit card holders).

4.6    Total deposits

Sum the total of “Transaction”, “Non-transaction”, “Term deposits”, “Certificates of deposit” and “Other”.

5.   Other borrowings

Include:

·        Securities sold under agreements to repurchase;

·        Subordinated loans with a residual maturity of 12 months or less;

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

·        Treasury related short-term borrowings from other banks;

·        Promissory notes with a residual maturity of 12 months or less;

·        Commercial paper with a residual maturity of 12 months or less; and

·        Short-term debt securities from the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity.

Exclude:

·        Negotiable and transferable certificates of deposits;

·        Subordinated loans, Promissory notes, Commercial paper with a residual maturity greater than 12 months; and

·        Deposits.

5.1    Securities sold under agreements to repurchase

These transactions are to be recorded consistently with International Accounting Standard 39.

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 (treating stock lending as on balance sheet exposures). Securities sold under agreements to repurchase, represents the payable due to counterparties with whom the stock has been lent and from whom cash has been lodged. Under this method of accounting the banks physical stock positions recorded on the balance sheet in either Trading Securities or Investment Securities sections is not affected.

5.2    Promissory notes/commercial paper

Report all borrowings by the reporting entity in the form of commercial paper or promissory notes. Commercial paper or promissory notes are short-term debt securities usually issued with an original term to maturity of less than 180 days.

Include all commercial paper or promissory notes issued with a residual term to maturity of 12 months or less. Commercial paper or promissory notes with a residual maturity greater than 12 months should be reported as “long-term debt”.

5.3    Other short-term debt securities

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

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

5.4.1.Short-term loans from ADIs/banks - 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 “Due to financial institutions: Banks”.

5.4.2.Short-term loans from ADIs/banks - 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 “Due to financial institutions: Banks”.

5.5.1.Short-term loans: Other - Variable

Report all borrowings by the reporting entity in the form of variable interest rate short-term loans from counterparties other than 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 “Due to financial institutions.

5.5.2.Short-term loans: Other - Fixed

Report all borrowings by the reporting entity in the form of fixed interest rate short-term loans from counterparties other than 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 “Due to financial institutions.

5.6.   Total other borrowings

Sum the component parts listed under “Other borrowings”.

6.       Income tax liability

6.1.   Provision for income tax

This is defined in accordance with AASB 1020 ‘Accounting for Income Taxes’. In addition, this should relate to Australian business operations.

6.2.   Provision for deferred income tax

This is defined in accordance with AASB 1020 ‘Accounting for Income Taxes’. In addition, this should relate to Australian business operations.

6.3.   Total income tax liability

Sum the income tax liability items relating to Australian business operations.

7.   Provisions

7.1.   Dividends

A provision for dividends is the allowance that the reporting entity has made in terms of the obligation for declared dividends.

7.2.   Employee entitlements

This includes provisions for long service leave, annual leave, staff housing loan benefits, health fund subsidy and other employee entitlements. This should be reported in accordance with the requirements of AASB 1028: Accounting for Employee Entitlements.

7.3.   Non-lending losses

Include:

·        Provision for self insurance;

·        Frauds;

·        Litigation, fraud detection and prevention;

·        Forgeries; and

·        Non-transferred insurance risks.

7.4.   Restructuring costs

Report all provisions raised for the restructuring of an organisation.

Include:

·        Severance, termination and redundancy payments

·        Integration costs

7.5.   Other provisions

Report all other provisions not identified above.

Include:

·        Specific provision for off-balance sheet credit related commitments;

·        Leased premises surplus to current requirements; and

·        Provision for subsidiary integration costs.

7.6.   Total provisions

Sum all the “Provisions” reporting items.

8. Bonds, notes and long-term borrowings

Bonds, notes and long-term borrowings have a residual term to maturity of more than one year. This includes loans and debt securities.

8.1.   Debt securities

Report debt securities that have been issued and have a residual term to maturity of more than one year. Measurement is to be consistent with Australian accounting standards

As a guide include:

·        bonds;

·        debentures;

·        unsecured notes;

·        fixed-interest securities;

·        medium-term notes (MTNs);

·        inflation-indexed bonds;

·        floating-rate notes (FRNs);

·        other floating-rate debt securities;

·        mortgage-backed bonds;

·        asset-backed bonds;

·        Euro notes;

·        Euro bonds;

·        Euro medium-term notes;

·        non-participating preference shares (a special type where the holder has no entitlement to a share in the residual value on dissolution of the issuing company); and

·         subordinated bonds and notes.

As a guide exclude:

·        hybrid securities;

·        trading derivatives;

·        convertible notes prior to conversion;

·        negotiable and transferable certificates of deposit;

·        subordinated debt issues with a residual maturity of 12 months or less;

·        promissory notes with a residual maturity of 12 months or less;

·        commercial paper with a residual maturity of  12 months or less; and

·        short-term debt securities from the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity.

8.2.   Loans

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

Include:

·        secured and unsecured borrowings;

·        financial lease agreements;

·        term loans;

·        mortgages;

·        commercial loans;

·        equity participation in leveraged leases;

·        redeemable preference share finance; and

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

Exclude:

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

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

·        treasury related short-term borrowings from other banks.

8.2.1.Long-term loans – Variable rate

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

8.2.2.Long-term loans – Fixed rate

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

8.3.   Total bonds, notes and long-term borrowings

Sum the total face value of all "Bonds, notes and long-term borrowings"

9. Creditors and other liabilities

9.1.   Interest payable

Include interest accrued for but not yet paid.

9.2.   Unearned interest

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

9.3.   Unrealised losses on trading derivatives

Traded derivative financial instruments should be reported at their fair value in “Other Liabilities” when unfavourable to the reporting entity.

Fair values are obtained from quoted market prices, discount cash flow models and options pricing models.

9.4.   Items in suspense

Report suspense or unreconciled/unidentified transactions/balances here that are in a liability position. A list of examples is not provided as these may vary between institutions. It is recommended that the institutions internal procedures be adopted regarding the recording and reporting of these types of balances.

9.5.   Due to merchants

For SCCIs, report any amounts owed to merchants as a result of acquiring credit card transactions.

9.6.   Other

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

Exclude:

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

9.7.   Total creditors and other liabilities

Sum the reporting items listed under “Creditors and other liabilities”.

10.  Loan capital and hybrid securities

Report the face value of all loan capital and hybrid securities and have a residual term to maturity of more than one year.

Classification is to be consistent with AASB 1033 ‘Presentation and Disclosure of Financial Instruments’.

As a guide include:

·        preference shares;

·        convertible notes; and

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

10.1.  Members withdrawable shares

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

10.2.  Loan capital

As a guide include:

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

10.3.  Hybrid securities

As a guide include:

·        converting preference shares; and

·        convertible notes.

10.4.  Total loan capital and hybrid securities

Total all “Loan capital and hybrid securities” items listed above.

11. Total liabilities

Sum all liabilities.

11.1.1.     Total liabilities of which deposits, debt securities and loans from controlled entities and associates – subordinated

·        Report the total amount of liabilities of a subordinated nature from controlled entities or associates of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

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

11.1.2.     Total liabilities of which deposits, debt securities and loans from controlled entities and associates – secured

·        Report the total amount of liabilities of a secured nature from controlled entities or associates of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

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

11.1.3.     Total liabilities of which deposits, debt securities and loans from controlled entities and associates – other

·        Report the total amount of liabilities other than subordinated or secured in nature, from controlled entities or associates of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

11.2.1.Total liabilities of which deposits, debt securities and loans from the parent entity – subordinated

·        Report the total amount of liabilities of a subordinated nature from the parent entity of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

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

11.2.2.Total liabilities of which deposits, debt securities and loans from the parent entity – secured

·        Report the total amount of liabilities of a secured nature from the parent entity of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

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

11.2.3.Total liabilities of which deposits, debt securities and loans from the parent entity – other

Report the total amount of liabilities other than subordinated or secured in nature, from the parent entity of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

11.3.  Total liabilities of which other secured deposits, debt securities and loans

·        Report the total amount of liabilities of a secured nature from parties other than the parent, controlled or associated entities of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.

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

Section C: Net Assets

1.       Subtract total liabilities from total assets

Section D: Shareholders’ Equity

Note:

·        On a monthly basis, institutions only need to provide shareholders’ equity value in aggregate, however the detailed disclosure may be provided if the institution prefers.

·        On a quarterly basis, (month ending on a calendar quarter e.g. March, June, September, December), the full detail of shareholders value is to be provided.

1.       Share capital

1.1.   Ordinary shares

Include ordinary share capital on issue.

1.2.   Preference shares

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

1.3.   Other

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

1.4.   Total share capital

Total all “Share capital” items listed above.

2.       Reserves

2.1.   General reserves

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

2.2.   Capital profits reserve        

Capital profits reserve represents the realised value of revaluations associated with an asset or class of assets that have been disposed of. These assets have been subject to the fair value basis of measurement and revaluations accounted for in accordance with accounting standard AASB 1041 ‘Revaluation of Non-Current Assets’. Due to the disposal of these assets, the balance of the Asset Revaluation Reserve associated with these assets has been transferred to a capital profits reserve.

2.3.1.     Asset revaluation reserve – Property, plant and equipment

Include balance of the asset revaluation reserve relating to the revaluation of property, plant and equipment.

2.3.2.     Asset revaluation reserve - Intangibles

Include balance of the asset revaluation reserve relating to the revaluation of intangible assets.

2.3.3.     Asset revaluation reserve – Investment in subsidiaries

Include the balance of the asset revaluation reserve relating to the revaluation of investment in subsidiaries.

2.3.4.     Asset revaluation reserve – Investments in associates/share of associates ARR

Include the balance of the asset revaluation reserve relating to the revaluation of investments in associates.

2.3.5.     Asset revaluation reserve - Other

Asset revaluation reserve relating to the revaluation of other assets.

2.5.   Foreign currency translation reserve

Include the exchange rate differences arising on translation of assets and liabilities in accordance with AASB 1012 ‘Foreign Currency Translation’.

2.6.   Other reserves

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

2.7.   Total reserves

Sum the reporting items listed under “Reserves”.

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

4.       Total shareholders’ equity

Sum the reporting items: “Shareholders’ equity attributable to shareholders of the company”.