Financial Sector (Collection of Data) determination No. 57 of 2005 (Cth)
Financial Sector (Collection of Data) determination No. 57 of 2005
Reporting Standard SRS 240.0 (2005)
Financial Sector (Collection of Data) Act 2001
I, Wayne Stephen Byres, 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 trustees 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 trustees on the date of registration on the Federal Register of Legislative Instruments.
Dated 2nd August 2005
[Signed]
Wayne Byres
Executive General Manager
Diversified Institutions Division
APRA
Interpretation
In this Notice
APRA means the Australian Prudential Regulation Authority.
Schedule
Reporting Standard SRS 240.0 (2005)
Membership Profile
Objective of this reporting standard
This reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001. It requires the trustee of a superannuation entity[1] to give APRA, on an annual basis, information in relation to the profile of membership of the superannuation entity and of member benefits.
This reporting standard outlines the overall requirements for the provision of the required information to APRA. It should be read in conjunction with:
[1] Other than an entity that was a small APRA fund, a self-managed superannuation fund, or a single member approved deposit fund at the end of the most recent reporting period under this reporting standard.
Form SRF 240.0 Membership Profile (Form SRF 240.0) and the instructions to that form; and
·the Annual Reporting Requirements and General Instruction Guide
which are attached and form part of this reporting standard.
Purpose
Data collected in Form SRF 240.0 is used by APRA for the purpose of prudential supervision.
Application and commencement
This reporting standard will apply, from the date of registration of the reporting standard on the Federal Register of Legislative Instruments, to each trustee of a relevant registered superannuation entity, as defined by paragraph 3.
A superannuation entity is a relevant registered superannuation entity if, at the end of the most recent reporting period for the entity, it was not:
(a) a small APRA fund;
(b) a self managed superannuation fund; or
(c) a single member approved deposit fund.
Note: Part 2B of the SIS Act makes provision for the registration of superannuation entities. However, although it is expected that most superannuation entities covered by this reporting standard will become registered under Part 2B, either during or after the licensing transition period referred to in the SIS Act, it is not a requirement of the definition of ‘relevant registered superannuation entity’ that a superannuation entity actually be registered under Part 2B. A superannuation entity will be a ‘relevant registered superannuation entity’ if it meets the definition in paragraph 3 of this reporting standard, even if it has not been registered under Part 2B. This note is inserted for the avoidance of doubt.
Information required
The trustee of a relevant registered superannuation entity must provide APRA with the information required by Form SRF 240.0, in respect of the entity, for each reporting period.
For the avoidance of doubt, if the trustee is trustee of more than one relevant registered superannuation entity, the trustee must separately provide the information required by the form for each of those relevant registered superannuation entities.
Forms and method of submission
The information required by this reporting standard must be given to APRA by the trustee of a relevant registered superannuation entity either:
(a) where subparagraph (b) does not apply:
in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or
by manually completing Form SRF 240.0 on paper and mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales; or
(b) by means of an agent to whom the trustee has outsourced the function of providing the information on the trustee’s behalf, in which case the agent must provide the information:
in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application: or
if the agent has contacted APRA and advised that the agent cannot submit the information in electronic form under sub-subparagraph (i), by manually completing Form SRF 240.0 on paper and mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales
Note: The ‘Direct to APRA’ software and relevant forms may be obtained from APRA.
Note: See paragraphs 12, 13 and 14 for requirements relating to the authorisation of information provided under this reporting standard (which differ depending on how the information is provided).
Reporting periods and due dates
Subject to paragraph 8, the trustee of a relevant registered superannuation entity must provide the information required by this reporting standard in respect of each year of income (within the meaning of subsection 10(1) of the SIS Act of the entity.
Note: Under section 113 of the SIS Act there will be a requirement for the information to be audited, together with annual information required under other reporting standards.
APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular relevant registered superannuation entity to require the trustee to provide the information required by this reporting standard in respect of the entity:
(a) more frequently (if, having regard to the particular circumstances of the entity, APRA considers it necessary or desirable to obtain information more frequently for the purposes of the prudential supervision of the entity); or
(b) less frequently (if, having regard to the particular circumstances of the entity and the extent to which it requires prudential supervision, APRA considers it unnecessary to require the trustee to provide the information on an annual basis).
The information required by this reporting standard must be provided to APRA within 4 months after the end of the reporting period to which it relates.
Note: The trustee must also give APRA an audit report relating to the information, and to annual information required under other reporting standards, within this time (see section 36 of the SIS Act).
APRA may grant a trustee an extension of a due date in writing, in which case the new due date for the provision of the information will be the date on the notice of extension.
Quality control
The information provided by a trustee under this reporting standard must be the product of processes and controls that have been reviewed and tested by the auditor of the insurer. This will require the auditor to review and test the systems, processes and controls supporting the reporting of the information to ensure that they produce accurate data and are otherwise reliable. This review and testing must be done on an annual basis or more frequently if necessary to enable the auditor to form an opinion on the accuracy and reliability of the data.
The information provided by a trustee under this reporting standard must be the product of processes and controls developed by the trustee for the internal review and authorisation of that information. It is the responsibility of the trustee to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.
Authorisation
If the trustee of a relevant registered superannuation entity provides the information required by this reporting standard under subparagraph 6(a), then:
(a) if the trustee uses the ‘Direct to APRA’ application under sub-subparagraph 6(a)(i), an officer of the trustee must digitally sign, authorise and encrypt the information (for which purpose APRA’s certificate authority will issue digital certificates, for use with the ‘Direct to APRA’ application, to officers of the trustee who have authority from the trustee to transmit data to APRA); and
(b) if the trustee provides the information on paper under sub-subparagraph 6(a)(ii), the completed form must be signed by an officer of the trustee who is authorised by the trustee to complete and lodge the form.
If the trustee of a relevant registered superannuation entity provides the information required by this reporting standard through an agent under subparagraph 6(b), then:
(a) the agent will not be required to sign or authorise the information; but
(b) the trustee must:
obtain from the agent a paper copy of the completed form as provided to APRA (whether it was provided under sub-subparagraph 6(b)(i) or (ii)); and
cause the paper copy to be signed by an officer of the trustee authorised by the trustee to sign the paper copy; and
lodge the signed paper copy with APRA by mailing it to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales, by the relevant due date (unless APRA, in writing, determines to waive the requirement under this sub-subparagraph, in relation to the trustee, or a class of trustees of which the trustee is a member, or all trustees).
Note: APRA may, for example, determine to waive the requirement under sub-subparagraph 14(b)(iii) where a trustee has undertaken to retain the signed copy of the completed form for an agreed period of time.
Minor alterations to form and instructions
APRA may make minor variations to:
(a) a form that is part of this reporting standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or
(b) the instructions to a form, to clarify their application to the form
without changing any substantive requirement in the form or instructions.
If APRA makes such a variation it must notify trustees of relevant registered superannuation entities in writing.
Transitional
If a reporting period of a relevant registered superannuation entity ended on 30 June 2005, or ends after that date, the trustee of the entity must report under this reporting standard in relation to the entity in respect of that reporting period.
Interpretation
In this reporting standard:
APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998;
due date means the relevant due date under paragraph 9 or, if applicable, paragraph 10;
officer in relation to a trustee of a relevant registered superannuation entity means:
(a) if the trustee is a corporation – a director or officer of that corporation;
(b) if the trustee is a natural person – that person; or
(c) if two or more natural persons are trustees of the entity – one of those persons;
regulated superannuation fund has the meaning given by section 19 of the SIS Act;
relevant registered superannuation entity has the meaning given by paragraph 3 of this reporting standard;
reporting period means a period mentioned in paragraph 7 or, if applicable, paragraph 8;
self managed superannuation fund has the meaning given by section 17A of the SIS Act;
single-member approved deposit fund means an approved deposit fund (within the meaning of subsection 10(1) of the SIS Act) that has only one member;
SIS Act means the Superannuation Industry (Supervision) Act 1993;
small APRA fund means a regulated superannuation fund that has fewer than 5 members and is regulated by APRA under the SIS Act;
superannuation entity has the meaning given by subsection 10(1) of the SIS Act.
Note: Subsection 10(1) of the SIS Act provides that superannuation entity means a regulated superannuation fund, or an approved deposit fund, or a pooled superannuation trust (as defined in the SIS Act).
Reporting Form SRF 240.0
Membership Profile
Instruction Guide
Completion of SRF 240.0 Membership Profile
This form must be completed on an annual basis by all trustees of APRA-regulated superannuation entities, excluding Small APRA Funds (SAFs) and Single Member Approved Deposit Funds (SMADFs).
Trustees of superannuation entities that are Pooled Superannuation Trusts are not required to complete this form; however it is still required to be submitted as part of the annual return. If a superannuation entity has no items to disclose, the form can be left blank as D2A recognises blanks as zeros.
Note: All forms included in the SRF 200 series should be submitted together as an annual return, not individually as separate forms.
Purpose
This form collects specific information on the membership profile of a superannuation entity. Information reported in this form is prudentially important, as it forms part of APRA’s monitoring and analysis framework for individual superannuation entities and the industry.
This Guide has been prepared to assist in the completion and lodgement of SRF 240.0 Membership Profile. For ease of use, the Guide has been split into three main sections as follows:
Lodgement and validation of and changes to SRF 240.0 Membership Profile;
General guidance – this guidance provides principles that should be applied to all items throughout SRF 240.0 Membership Profile; and
Instruction guide for specific items – this guidance should be applied to the specific items which relate to each superannuation entity.
Lodgement and validation of SRF 240.0 Membership Profile
Lodgement and authentication codes
This form must be completed and lodged to APRA by a corporate or natural ‘person’ (trustee director or administrator), and not by the superannuation entity as the entity is not a ‘person’.
Once SRF 240.0 Membership Profile has been completed and submitted to APRA, an authentication code is generated in D2A from information entered into the form. The authentication code and date submitted appear in the footer of each page of the return (‘return’ equates to all 9 forms). Any change of information entered or resubmission of the return will result in a change to the authentication code. The authentication codes and date submitted should be used by auditors to determine that the four forms audited (SRF 200.0 Statement of Financial Performance, SRF 210.0 Statement of Financial Position, SRF 220.0 Exposure Concentrations and SRF 230.0 Transactions with Associated Parties) have been submitted.
The same authentication code on all the forms lodged will give trustees some 'comfort' that their attestations on SRF 260.0 Trustee Statement relate to the other forms submitted as the return. Different authentication codes should be taken by trustees that their attestations are not consistent with other forms and APRA may take the view that the return has therefore not been signed and authorised by the trustee.
A receipt indicating successful lodgement of the return will be provided via email. There may be a slight delay in a receipt being provided if the submission is made in the last week of October. Do not resubmit your return however, as the receipt will be generated.
Validation and calculation of totals
When data is entered into the form, the total balances (in the greyed out cells) will not be calculated automatically. The total items will only calculate when the form is validated. Clicking on the word 'validate' in the top left hand corner of the screen and selecting ‘OK’ will result in the total items being calculated and the validation rules appearing for review.
There are three types of validation rules as follows:
Warnings: Confirmation rules – this rule requires the user to provide confirmation that the data entered into an item is correct, for example that a negative number is correct and should not be positive. To provide confirmation the user should click the confirm box and provide a brief description in support of the item.
Note: Descriptions entered for warnings may not always appear if the return is validated more than once. There is no need to re-enter the description as D2A has saved this description and the comments will be lodged with the return.
Error: Mandatory rules – this indicates an error in an item, for example a description and a value must be included in a table. These errors must be corrected before the return can be lodged.
Cross form validations – this also indicates an error and must be corrected before the return can be lodged, for example Totals disclosed in SRF 210.1 Selected Disclosure of Investments must agree with the investments reported in item 3 ‘Investments’ on SRF 210.0 Statement of Financial Position.
General guidance for completion of SRF 240.0 Membership Profile
Important!
As for all forms, as detailed under the scale factor, monetary amounts in this form should be reported in thousands of Australian dollars ($’000). Do not use decimal numbers i.e. when dividing the value to obtain a rounded balance to the nearest thousand dollars, ensure that the figure is whole.
Numbers of members should be reported in whole numbers.
Important!
If a superannuation entity recognises a member with a zero balance as a member of the entity, then these members should be included on SRF 240.0 Membership Profile.
Important!
Superannuation entities that are Pooled Superannuation Trusts are not required to complete inapplicable items on this form. Report “N/A, Pooled Superannuation Trust” in response to any validation confirmations that are required upon submission of the form.
Important!
Zeros are not required where there is no dollar or member number value for an item. If there is no balance for an item, leave it blank, as D2A recognises blanks as zeros.
Important!
Member information should be provided based on the member numbers at year end only.
Instruction guide for specific items
Part A: Movement in membership of the superannuation entity
Number of members at the beginning of the financial year
Report the number of members who were in the superannuation entity at the beginning of the financial year. It includes active, inactive, and ex-employees whose benefits are retained within the superannuation entity.
Important!
SRF 240.0 Membership Profile item 1 ‘Number of members at the beginning of the financial year’ for the current reporting period/financial year should equal SRF 240.0 Membership Profile item 4 ‘Number of members at the end of the financial year’ from the previous reporting period/financial year.
Number of members exiting during the financial year
Report the number of members that have exited membership of the superannuation entity during the financial year, classified into the following categories where known.
Important!
If a member rolls over half of their benefit to another superannuation fund, as the member retains a balance with the reporting superannuation entity for the purposes of SRF 240.0 Membership Profile, then the member should not be reported as an exit. The amount of the rollover should be reported in item 2.2 of SRF 200.0 Statement of Financial Performance.
Important!
APRA is aware that one of the reasons for members exiting is a rollover to another superannuation entity. Rollovers should be disclosed in Part A item 2.7, Table 1 ‘Other’ with the description of ‘rollovers’. As detailed above, partial rollovers do not represent an exit.
Important!
If there has been a reduction in membership of the superannuation entity due to merging of records this should be reported in Part A item 2.7, Table 1 ‘Other’ Table 1 of Part A item 2.7 with the description of ‘merged memberships’.
Duplicate or multiple memberships that have not been merged should be disclosed as separate members, under the appropriate heading in SRF 240.0 Membership Profile.
2.1. Death
Where known, report the total number of exits from the superannuation entity that relate to the death of a member. Exclude member exits resulting from transfers to Eligible Rollover Funds (ERF) at this item – report at item 2.6 below.
2.2. Retirement
Where known, report the total number of exits from the superannuation entity relating to the retirement of members from employment. Exclude member exits resulting from transfers to ERF at this item – report at item 2.6 below.
2.3. Retrenchment/redundancy
Where known report the total number of exits from the superannuation entity resulting from member redundancy or retrenchment from employment. Exclude member exits resulting from transfers to ERF at this item – report at item 2.6 below.
2.4. Disablements
Where known report the total number of exits resulting from disability. Exclude member exits resulting from transfers to ERF at this item – report at item 2.6 below.
2.5. Resignations
Where known, report the total amount of member exits resulting from member resignation from the employer. Exclude member exits resulting from transfers to ERF at this item – report at item 2.6 below.
2.6. ERFs
Where known, report the total number of member exits resulting from transfers to Eligible Rollover Funds (ERF), regardless of the reason for the member’s exit i.e. do not report these exits under items 2.1 to 2.5 above.
2.7. Other (provide details in Table 1 below)
Provide in Table 1 a brief description for each item reported in this field that is not appropriately classified into one of the above classifications.
2.8. Total number of members exiting
Represents the sum of the values reported for items 2.1 to 2.7.
Important!
Include rollovers/transfers between different superannuation entities where a single employer sponsors several superannuation entities, but do not include transfers between divisions within a single fund, or between sub-plans of a single master trust.
Number of new members joining during the financial year
Important!
If the superannuation entity has pensioners that are new entrants, then these members should be reported under item 3.1 ‘Personal’.
Important!
New spouse members should be shown in Part A item 3.3 Table 2 and described as ‘spouse members’.
3.1. Personal
Report the number of new members who joined the superannuation entity during the financial year as personal members i.e. that are not employer sponsored. Do not include other types of accounts reported at item 3.3.
3.2. Employer sponsored
Report the number of new members who joined the superannuation entity during the financial year that are employer sponsored.
3.3. Other (provide details in Table 2 below)
Report the number of new members who joined the superannuation entity during the period and who do not fit into the classification of 3.1 and 3.2 above. Provide a brief description for each item reported in this field. May include (but is not limited to):
Spouse accounts; and
Child superannuation accounts.
3.4. Total number of new members of the superannuation entity
Represents the sum of the values reported for items 3.1 to 3.3.
Number of members at the end of the financial year
Report the number of members who are in the superannuation entity at the end of the financial year. This number should reconcile to the following:
Number of member at the beginning of the financial year
Less:
2.7. Total number of members exiting
Plus:
3.4. Total number of new members
Of the total number of members reported in item 4, report the number of members of the superannuation entity that represent the following classifications listed in items 4.1 to 4.5.
Note:
Items 4.1 to 4.5 are not intended to sum to the total number reported in item 4.
Important!
Member information should only be provided based on the member numbers at year end. If a member joined the superannuation entity in the prior period and has then switched to a different category in the current reporting period/financial year, the member should not be reported as a new member in this category as they will already be included under PART A item 1 ‘Number of members at the beginning of the financial year’.
Important!
A superannuation entity should only have zero members reported under SRF 240.0 Membership Profile item 4 if the fund is winding up. If the superannuation entity is winding up then this should be disclosed in SRF 250.0 Superannuation Entity Profile item 4 ‘Wind Up Details’.
4.1. Of which are spouse members
Spouses include a person’s legally married husband or wife, or a de facto husband or wife, or a person who lives with another on a genuine domestic basis for whom spouse contributions are received by the superannuation entity. For example, spouse contributions received by the superannuation entity from the standard employer sponsored member (legally married husband or wife). Only include accounts which have been set up for the primary purpose of receiving spouse contributions.
If a spouse is not a member of the superannuation entity, then they should not be included in the disclosure as a member.
Important!
The superannuation entity should only report spouse members who have joined the superannuation entity as a result of an account being opened because the person was a spouse of an existing member. This also includes family law matters.
4.2. Of which are defined benefits only members
Report here members whose entitlements in the superannuation entity are entirely determined on the basis of a defined benefit formula.
4.3. Of which are accumulation benefits only members
Report here members whose entitlements in the superannuation entity are entirely determined on the basis of contributions into the superannuation entity, adjusted for earnings, fees and taxes.
4.4. Of which are members with both defined benefit and accumulation balances
Report here members whose entitlements in the superannuation entity are determined partially on the basis of a defined benefit formula and partially on the basis of contributions into the superannuation entity, adjusted for earnings, fees and taxes.
4.5. Of which are pensioners
A pensioner member of the superannuation entity is a person who is in receipt of an income stream, including the following benefits from the superannuation entity:
a complying pension/annuity;
an allocated pension/annuity; and
all other types of pensions.
Part B: Age Segmentation of Members of the Superannuation Entity
Important!
The age break-up of members is only required for members at the end of the superannuation entity's reporting period/financial year.
Important!
The sum total of number of female members and the number of male members reported in SRF 240.0 Membership Profile Part B should not be greater than the number of members in total disclosed at SRF 240.0 Membership Profile Part A item 4.
Important!
If the superannuation entity cannot identify, or does not know, the age/gender of a proportion of their members, the superannuation should pro rata the unknowns based on the known age/genders. For example, if the population is 30% males, 30% females and 40% unknown, a pro rata calculation would result in 50% males and 50% females. This is also applicable to reporting age/gender for vested benefits.
Age segmentation
This table provides an age profile of membership of the superannuation entity, reported according to the following age bands:
< 35;
35 – 49;
50 – 59;
60 – 65; and
66+
For each age band specified in the forms, the following is to be reported:
Number of female members
Where known, report the aggregate number of female members.
Number of male members
Where known, report the aggregate number of male members.
Vested benefits
Vested benefits are the benefits which are not conditional upon continued membership or any other factor other than resignation from the superannuation entity and include benefits which members were entitled to receive had they terminated their membership as at the reporting date.
Report the total annual vested benefits of members of the superannuation entity for each age range/bracket, in the separate columns provided for:
Vested benefits - female members; and
Vested benefits - male members.
Important!
The amount of the vested benefit, reported by the superannuation entity, should agree with the:
withdrawal benefits detailed on the member statements; or
the superannuation entity’s best available estimate.
If the amount does not include accruals, for example due to dividends that are due in the following month and are not fully ascertainable as at the reporting date, the superannuation entity should report the cash amount.
Important!
Where vested benefits are reported by the age segmentation of members in SRF 240.0 Membership Profile Part B, vested benefits by the benefit type of members should also be reported under Part C item 1.2 ‘Defined benefits members – Vested benefits’ and item 2.2 ‘Accumulation benefits members – Vested benefits’.
Part C: Profile of member benefits of the superannuation entity
Explanation of column headings
Last valuation
This refers to the last valuation as determined by an actuary (which is generally conducted every 3 years. APRA is not imposing yearly actuarial valuations). This date should be the same as that reported at item 6.4 on SRF 250.0 Superannuation Entity Profile.
Last valuation date
This refers to the date of the last valuation as determined by an actuary (which is generally conducted every 3 years. APRA is not imposing yearly actuarial valuations). Report the date at which this valuation was conducted.
Last estimate
This refers to the last estimate of the applicable value determined by the trustee.
Last estimate date
This refers to the date of the last estimate of the value for the applicable item requested. Report the date at which the estimation was conducted.
Explanation of Line Items
In respect of defined benefits members
1.1. Actuarially determined accrued benefits (allocated to members)
Report the total benefit members have potential entitlement to, as at:
Last valuation;
Report the value of accrued benefits as determined by an actuary;
Last estimate; and
This refers to the last estimate of the accrued benefits, where applicable.
Important!
Accrued benefits under SRF 240.0 Membership Profile Part C item 1.1 should be equal to those reported under SRF 210.0 Statement of Financial Position item 13 ‘Liability for accrued benefits (allocated to members)’ relating to defined benefit members.
Important!
In the columns ‘Last Valuation’ and ‘Last Estimate’ the oldest valuation and estimation date for any of the sub-plans should be reported. Do not average the dates.
1.2. Vested benefits
Report the total vested benefits of members of the superannuation entity. Vested benefits are the benefits which are not conditional upon continued membership or any other factor other than resignation from the superannuation entity and include benefits which members were entitled to receive had they terminated their membership at as the reporting date.
Report this value as at:
Valuation date (as defined above); and
Last estimate (as defined above).
Important!
Where vested benefits have been reported under SRF 240.0 Membership Profile Part B and they relate to defined benefits members, they should also be disclosed under SRF 240.0 Membership Profile Part C item 1.2.
1.3. Preserved benefits
Report the total member vested benefits which must either be retained in the superannuation entity or transferred to another superannuation entity. These benefits cannot be paid to the member until they reach a condition of release such as retirement. Report this as at:
Valuation date (as defined above); and
Last estimate (as defined above).
In respect of defined contribution members
2.1. Accrued benefits (allocated to members)
Report the total accrued benefits of members of the superannuation entity. The liability for accrued benefits is the superannuation entity’s present obligation to pay benefits to members and beneficiaries and has been calculated as the difference between the carrying amounts of the assets and the carrying amounts of the liabilities as at the reporting date.
Important!
Accrued benefits under SRF 240.0 Membership Profile Part C item 2.1 should be equal to those reported under SRF 210.0 Statement of Financial Position item 13 ‘Liability for accrued benefits (allocated to members)’ relating to defined contribution members.
Overall, the value of accrued benefits in respect of both defined benefit and defined contribution members (aggregate of SRF 240.0 Membership Profile Part C items 1.1 and 2.1) at the last estimate, should approximate the total amount reported at SRF 210.0 Statement of Financial Position item 13 ‘Liability for accrued benefits (allocated to members)’.
2.2. Vested benefits
Report the total vested benefits of members of the superannuation entity. Vested benefits are the benefits which are not conditional upon continued membership of the superannuation entity and include benefits which members were entitled to receive had they terminated their membership at as the reporting date.
Important!
Where vested benefits have been reported under SRF 240.0 Membership Profile Part B and they relate to accumulation benefits members, they should also be disclosed under SRF 240.0 Membership Profile Part C item 2.2.
Overall, the sum of SRF 240.0 Membership Profile Part B column ‘Vested benefits – female members’ and column ‘Vested benefits – male members’ should equal the sum of SRF 240.0 Membership Profile Part C items 1.2 and 2.2.
2.3. Preserved benefits
Report the total member vested benefits which must either be retained in the superannuation entity or transferred to another superannuation entity. These benefits cannot be paid to the member until they reach retirement age.
Annual Reporting Requirements and General Instruction Guide
Entities subject to annual reporting
Trustees of superannuation entities that are regulated by APRA, including trustees of the following entities, are required to complete the APRA Annual Return comprising the forms listed in the Reporting Requirements Table.
Public Offer Superannuation Entities;
Other APRA regulated superannuation entities;
Multi-Member Approved Deposit Funds;
Pooled Superannuation Trusts; and
Eligible Rollover Funds.
Excluded
Small APRA Funds (SAFs); and
Single-member Approved Deposit Funds.
Reporting Requirements Table
Form Number Form Name Subject to Audit SRF 200.0 Statement of Financial Performance Yes SRF 210.0 Statement of Financial Position Yes SRF 210.1 Selected Disclosure of Investments No SRF 210.2 Derivative Financial Instruments No SRF 220.0 Exposure Concentrations Yes SRF 230.0
Transactions with Associated Parties
Yes
SRF 240.0 Membership Profile No SRF 250.0 Superannuation Entity Profile No SRF 260.0 Trustee Statement No APRA Annual Return
All the forms listed in the above table comprise the APRA Annual Return.
Audit requirements
Those forms comprising the APRA Annual Return that are subject to audit are highlighted in the Reporting Requirements Table above.
The nature of the audit requirements for these forms will be as developed in conjunction with the Auditing and Assurance Standards Board of Australia.
Reporting period
The information requested in the above forms is to be reported for the financial year of the superannuation entity.
Lodgement requirements
The APRA Annual Return is required to be lodged with APRA within 4 months after the end of the financial year of the superannuation entity together with the Independent Audit Report from the auditor of the superannuation entity covering those forms that are noted as subject to audit.
Amendments
Where the trustee of a superannuation entity makes a material adjustment to any data relating to the financial year for which the return has been lodged, an amended APRA Annual Return must be lodged with APRA.
Basis of preparation
In completing these forms unless otherwise specifically stated in the instruction guide for each form:
Basis of accounting (Cash vs Accruals):
The forms should be prepared on a basis consistent with the accounting treatment (cash or accruals basis) adopted by the superannuation entity for annual financial reporting purposes. APRA would ordinarily expect that regulated superannuation entities are ‘reporting entities’, and will therefore apply an accruals basis, in accordance with the requirements of Australian Accounting Standards and the guidance in APRA Superannuation Circular No. V.A.2.
Important!
For those superannuation entities subject to APRA quarterly reporting: Once selected, the basis of accounting used must be consistent for all 4 quarterly returns and the corresponding annual return.
Direct vs Indirect investments:
Certain items on the forms distinguish between ‘directly held’ investments and those which are not directly held.
Directly held investments are those made by the superannuation entity in its own name, as part of the internal investment management function. This includes investments held by a custodian where these are held in Trust for the entity and the superannuation entity retains the decision-making function regarding the making and redeeming of particular investments within the portfolio.
Investments that are not directly held include underlying investments that are held with external investment managers (such as investments in PSTs or unit trusts), and investments held via individually managed mandates/portfolios where the decision-making function regarding the making and redeeming of particular investments within the portfolio may rest with the investment manager.
Netting off of Amounts:
Unless otherwise specifically stated, data in the forms should be reported on a gross basis, with no netting, even where the institutions comply with the prerequisites for netting outlined in the current Australian Accounting Standards, notably ‘Set-off and Extinguishment of Debt’.
Include:
All transactions of the superannuation entity regardless of the residency status of members or the location or registration of assets or liabilities;
Unless otherwise indicated, report all items on the form as positive numbers;
Investments and other exposures held directly by the superannuation entity (i.e. as part of its internal investment management).
Investments and other exposures generated or held as part of an external individually managed mandate/portfolio or discretely managed portfolio of the superannuation entity (i.e. the superannuation entity is required to ‘look through’ investments in these structures to report the underlying investments, other exposures and liabilities of these arrangements).
Exclude:
Do not include a consolidation of any controlled entities;
The ‘look through’ provision does not apply to investments by the superannuation entity in investment management structures other than external individually managed mandates, in terms of reporting the underlying exposure of these investment vehicles (i.e. it does not extend to reporting the underlying investments in PSTs or public offer unit trusts; such investments are to be reported as investments in managed funds).
Trustees of superannuation entities are to follow the Australian Accounting Standards, notably AAS 25 ‘Financial Reporting of Superannuation Plans’ and other mandatory and legislative requirements where applicable, regarding the interpretation, recognition and measurement of items of income, expense, assets and liabilities. AAS 25 requires a trustee of a superannuation entity to adopt net market value measurement where the superannuation entity is deemed to be a reporting entity. For the purposes of prudential reporting all trustees of superannuation entities are to adopt net market value measurement irrespective of their deemed reporting entity status.
Net market value has the same meaning as defined in the Australian accounting standards notable AAS 25. A definition is provided in the ‘Glossary of Terms’. Any change in the values at which such assets are measured must be recognised as revenues (or losses) in the reporting period in which the change occurs.
Accounting Standards AAS 4 ‘Depreciation’, AAS 10 ‘Recoverable Amount of Non-Current Assets’ and AASB 1041 ‘Revaluation of Non-Current Assets’ do not apply to such investments.
Market value of charged/encumbered assets
If an asset is in any way subject to a charge, covenant, encumbrance, option to purchase or any other arrangement by way of agreement or statute, that restricts the net market value of the asset, the market value needs to reflect the existence of these arrangements. For example, if the superannuation entity has agreed to deliver an asset to a purchaser at a price below the arms length market value, the market value cannot exceed the agreed price.
Unit of measurement
The above forms are to be prepared in thousands of Australian dollars (AUD), rounded to the nearest thousand, i.e. with no decimal place. As a general rule, amounts denominated in foreign currency are to be converted to AUD in accordance with the requirements of the current Australian accounting standards, notably Foreign Currency Translation.
The general requirements for translation are:
Foreign currency monetary items outstanding at the reporting date must be translated at the spot rate at the reporting date.
Other items outstanding at the reporting date must not be re-translated 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 (eg. claim payments, reinsurance recoveries).
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.
The general requirements for accounting treatment of exchange differences arising on translation are:
Exchange differences must be recognised as either revenues or expenses in the calculation of net profit or loss in the reporting period in which the exchange rates change.
Exchange differences that arise in respect of foreign currency monetary items which are directly attributable to the acquisition, construction or production of an asset that takes a long period of time to get ready for its intended use or sale, must be capitalised (net of any effects of a hedge) as part of the cost of that asset.
General definitions
The Glossary Terms contains definitions of commonly used terms in the instruction guides and the forms listed in the Reporting Requirements Table.
Item Definition Associates
Associate is defined consistent with the definition provided by the current Australian accounting standard regarding ‘Accounting for Investments in Associates’.
Associate means an investee, not being:
(a) a subsidiary of the investor; or
(b) a partnership of the investor; or
(c) an investment acquired and held exclusively with a view to its disposal in the near future.
over which the investor has significant influence.
Significant influence means the capacity of an entity to affect substantially (but not control) either, or both, of the financial and operating policies of another entity.
Controlled entity/Subsidiary
Definitions of controlled entities/subsidiaries should be consistent with the requirements of the current Australian accounting standards regarding ‘Consolidated Financial Reports’.
The current Australian accounting standards regarding ‘Consolidated Financial Reports’ defines a controlled entity/“subsidiary" as meaning an entity, which is controlled by a parent entity. A parent entity is defined as an entity, which controls another entity.
Entity means any legal, administrative, or fiduciary arrangement, organisational structure or other party (including a person) having the capacity to deploy scarce resources in order to achieve objectives.
Control means the capacity of an entity to dominate decision-making, directly or indirectly, in relation to the financial and operating policies of another entity so as to enable that other entity to operate with it in pursuing the objectives of the controlling entity.
Assets
Assets is to be interpreted in accordance with the Australian Accounting Standards and authoritative pronouncements and Statements of Accounting Concepts. Liabilities
Liabilities is to be interpreted in accordance with the Australian Accounting Standards and authoritative pronouncements and Statements of Accounting Concepts. Fair Value
Fair value means the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's-length transaction, and is determined as follows:
1. The quoted market price in an active and liquid market (ie market value); or
2. when there is infrequent activity in a market, the market is not well established, small volumes are traded relative to the asset or liability to be valued, or a quoted market price is not available – an estimate of a price for the asset or liability in an active and liquid market.
For the purposes of the APRA forms, fair value should ignore transaction costs. Market value is defined for accounting purposes as a subset of fair value - refer to the definitions of market value and net market value below.
Finance Lease
A finance lease over an asset is an arrangement under which the lessor
effectively transfers to the lessee substantially all the risks and benefits incident to ownership of the leased asset, and where legal ownership may eventually be transferred.
Goodwill
The current Australian accounting standards regarding ‘Accounting for Goodwill’ provides that goodwill represents the future benefits from unidentifiable assets. Only goodwill which is purchased by the entity as part of the acquisition of an asset(s) can be recognised (i.e. internally generated goodwill must not be recognised).
Goodwill which is purchased by the entity, must be measured as the excess of the cost of acquisition incurred by the entity over the fair value of the identifiable net assets acquired.
Purchased goodwill must be amortised so that it is recognised as an expense in the profit and loss account on a straight-line basis, over the period from the date of acquisition to the end of the period of time during which the benefits are expected to arise. This period must not exceed twenty years from the date of acquisition.
Impairment
For the purposes of the APRA forms, impairment means that it is no longer considered probable that amounts of principal (or market value) and any associated amounts of accrued income (e.g. interest, dividends, distributions associated with the investment/asset) will be able to be collected by the superannuation entity. Investment Investment is to be interpreted in accordance with the Australian Accounting Standards and authoritative pronouncements and Statements of Accounting Concepts.
In relation to superannuation entities, this generally means an asset held by the superannuation entity for the accretion of wealth by way of revenues such as interest, royalties, dividends, rentals and capital appreciation, but does not include operating assets.
Joint ventures
Defined in accordance with the current Australian accounting standards regarding ‘Interests in Joint Ventures’. Joint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control. Joint ventures can take the form of a joint venture entity or joint venture operation.
Joint venture entity means a joint venture that is in the form of an entity and does not include:
(a) an entity that is acquired and held exclusively with a view to its disposal in the near future
(b) an entity that operates under severe long-term restrictions which impair significantly its ability to make distributions to the venturer.
Joint venture operation means a joint venture that is not a joint venture entity and does not include an entity that:
(a) is acquired and held exclusively with a view to its disposal in the near future
(b) operates under severe long-term restrictions that impair significantly its ability to make distributions to the venturer.
Life office/Life company A life insurance company is a company registered under the Life Insurance Act 1995. They provide insurance against death and disability and may also operate superannuation entities. Also known as life office. Market value
Market value is defined for accounting purposes as a subset of fair value, and means the amount which could be expected to be received from the disposal of an asset in an active and liquid market.
For the purposes of the forms, market value should ignore transaction costs. Refer also to the definition of net market value below.
Net market value Net market value means the amount which could be expected to be received from the disposal of an asset in an active and liquid market (i.e. market value) after deducting costs expected to be incurred in realising the proceeds of such a disposal. Refer also to the definition of market value above. Outside equity interest
Defined consistent with the current Australian accounting standards regarding ‘Consolidated Financial Reports’ outside equity interest" means the equity in the economic entity (consolidated group), other than that which can be attributed to the ownership group of the parent entity. Parent entity
Parent entity is defined consistent with the current Australian accounting standards regarding ‘Consolidated Financial Reports’ and simply means an entity which controls another entity. Pooled Superannuation Trust (PST) A PST is a trust in which assets of a number of superannuation entities, approved deposit funds (ADFs) or other PSTs are invested and managed by a professional manager. The investment income of the PST is taxed at concessional rates within the PST. Principal Value Represents the notional or face value. Related parties/entities
For the purposes of this form, related entities are to be interpreted consistently with the meaning as in the current Australian accounting standards regarding ‘Related Party Disclosures’. It provides that related party means, in relation to a reporting entity, any:
(a) other entity that at any time during the financial year, has control or significant influence over the reporting entity; or
(b) other entity that at any time during the financial year, is subject to control or significant influence by the reporting entity (i.e. subsidiary or an associated entity); or
(c) other entity that, at any time during the financial year, is controlled by the same entity that controls the reporting entity. Referred to as a situation in which entities are subject to common control (i.e. Joint Ventures); or
(d) other entity that, at any time during the financial year, is controlled by the same entity that significantly influences the reporting entity; or
(e) other entity that, at any time during the financial year, is significantly influenced by the same entity that controls the reporting entity; or
(f) director of the reporting entity or any of their director-related entities; or
(g) director of any other entity identified as a related party under any of paragraphs (a) to (e), or any of their director-related entities;
but excludes any other entity (except those identified as a related party under paragraph (f)) where the related party relationship results solely from normal dealings of:
(h) financial institutions; or
(i) authorised trustee corporations; or
(j) fund managers; or
(k) trade unions; or
(l) statutory authorities; or
(m) government departments; or
(n) local governments
The current Australian accounting standards define director-related entities as meaning “the spouses of such directors, relatives of such directors or spouses and any other entity under the joint or several control or significant influence of such directors, spouses or relatives”.
Relative in relation to a person is defined in the Corporations Act to mean the spouse, partner, son, daughter, or brother or sister of the person.Reporting period
In relation to APRA forms:
· Reporting period end for all APRA forms (i.e. annual and quarterly reporting) is based on the year of income of the superannuation entity, not a calendar year.
· The financial information requested in the forms is to be reported as at the last day of the reporting period on a year of income to date basis of the superannuation entity.
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