Financial Sector (Collection of Data) (reporting standard) determination No. 35 of 2007 DRS 300.0 Statement of Financial Position (Cth)

Case

Financial Sector (Collection of Data) (reporting standard) determination No. 35 of 2007

Reporting standard DRS 300.0 – Statement of Financial Position

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), DETERMINE the Reporting Standard DRS 300.0 Statement of Financial Position in the form set out in the Schedule, which applies to all discretionary mutual funds.

This instrument takes effect on the date of registration on the Federal Register of Legislative Instruments.

Dated 14 December 2007

[signed]

Charles Littrell

Executive General Manager

Policy, Research and Statistics

Interpretation

In this Determination

APRA means the Australian Prudential Regulation Authority.

discretionary mutual fund has the meaning given in the Act.

Federal Register of Legislative Instruments means the register established under section 20 of the Legislative Instruments Act 2003.

Schedule

Reporting Standard DRS 300.0 Statement of Financial Position comprises the 22 pages commencing on the following page.

Reporting Standard DRS 300.0

Statement of Financial Position

Objective of this reporting standard

This reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001. It requires all DMF entities to provide to APRA, on an annual basis, the Form DRF 300.0 Statement of Financial Position.

This reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with the form and the associated instructions (which are attached and form part of this reporting standard).

Purpose

  1. Information collected in Form DRF 300.0 Statement of Financial Position (Form DRF 300.0) is used by APRA for the purpose of monitoring bodies in the finance sector.

Application and commencement

  1. This reporting standard applies to all DMF entities from 1 January 2008.

Information required

  1. A DMF entity must provide APRA with the information required by Form DRF 300.0, in respect of:

(a)the DMF; and

(b)in those cases where a DMF comprises a number of individual subfunds and each subfund has a distinct bank account and financial statement, each subfund

for each reporting period.

Forms and method of submission

  1. The information required by this reporting standard must be given to APRA either:

(a)in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or

(b)by manually completing Form DRF 300.0 on paper and mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales.

  1. Where the information is submitted by means of an agent to whom the DMF entity has outsourced the function of providing the information on the DMF entity’s behalf, the agent may only provide the information in accordance with paragraph 4(b) if the agent has contacted APRA and advised that the agent cannot submit the information in electronic form under paragraph 4(a).

Note: the ‘Direct to APRA’ software and relevant forms is obtained from APRA.

Reporting periods and due dates

  1. A DMF entity must provide the information required by this reporting standard in respect of each year of income of the DMF.

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

(a)more frequently (if, having regard to the particular circumstances of the DMF entity, APRA considers it necessary or desirable to obtain information more frequently); or

(b)less frequently (if, having regard to the particular circumstances of the DMF entity, APRA considers it unnecessary to require the DMF entity to provide the information as frequently as provided by paragraph 6).

  1. The information must be provided to APRA:

(a)if the end of the year of income of the DMF falls between 1 January 2008 and 30 June 2008, inclusive – by no later than 30 October 2008; or

(b)if the end of the year of income of the DMF falls after 30 June 2008 –within 4 months after the end of that year of income of the reporting period to which it relates.

  1. APRA may grant 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

  1. The information provided under this reporting standard must be the product of processes and controls developed by the DMF entity for the internal review and authorisation of that information. It is the responsibility of the DMF entity to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.

Authorisation

  1. If the officer of a DMF entity provides the information required by this reporting standard under paragraph 4, then:

(a)if the officer uses the ‘Direct to APRA’ application under paragraph 4(a), an officer 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 who have authority from the DMF entity to transmit data to APRA); and

(b)if the DMF entity provides the information on paper under paragraph 4(b), the completed form must be signed by an officer of the DMF entity who is authorised by the DMF entity to complete and lodge the form.

  1. If the DMF entity provides the information required by this reporting standard through an agent under paragraph 5, then:

(a)the agent will not be required to sign or authorise the information; but

(b)the DMF entity must:

(i)      obtain from the agent a paper copy of the completed form as provided to APRA (whether it was submitted electronically or in paper form); and

(ii)      cause the paper copy to be signed by an officer of the DMF entity authorised by the DMF entity to sign the paper copy; and

(iii)     lodge the signed paper copy with APRA by mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales, by the relevant due date.

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

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

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

(c)the trustee.

Minor alterations to form and instructions

  1. 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.

  1. If APRA makes such a variation it must notify in writing each DMF entity that is required to report under this reporting standard.

Interpretation

  1. In this reporting standard:

APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998;

DMF has the meaning given by section 5 of the Financial Sector (Collection of Data) Act 2001;

due date means the relevant due date under paragraph 8 or, if applicable, paragraph 9;

DMF entity is a person or body that controls a DMF, and may include any of the following:

(a)a body corporate;

(b)a partnership;

(c)an unincorporated body;

(d)an individual;

(e)for a trust that has only one trustee – the trustee;

(f)for a trust that has more than one trustee – the trustees together;

officer in relation to a DMF entity means, where relevant:

(a)a director or secretary of the entity; or

(b)a person:

(i)      who makes, or participates in making, decisions that affect the whole, or a substantial part, of the business of the entity; or

(ii)      who has the capacity to affect significantly the entity’s financial standing;

reporting period means a reporting period mentioned in paragraph 6 or, if applicable, paragraph 7;

year of income means the financial year of the DMF.

Reporting Form DRF 300.0

Statement of Financial Position

Instruction Guide

Introduction

This form requires Discretionary Mutual Funds (DMFs) to report information about their assets, liability and capital. It should include:

  • Offshore operations or business

  • Associated entities and joint ventures.

  • Controlled entities

in relation to both discretionary and non discretionary business.

Level of reporting

For the purposes of the instructions below the term DMF includes reporting at the legal entity or trust or subfund level. The same level of reporting must be used throughout this form.

DMFs will generally need to submit data at the legal entity or trust level. Some DMFs, however, operate with multiple subfunds and in those cases where the DMF has separate sub fund bank accounts and sub fund financial statements, this reporting form will need to be submitted for each sub fund. For example, if an entity has 2 subfunds: subfund A and subfund B. Subfund A and also subfund B will need to complete this reporting form.

Reporting obligations

The company or the trustee of the DMF is required to report information relating to a financial year in the forms. For financial years ending on or between 1 January 2008 and 30 June 2008 DMFs must lodge this form at the latest by 30 October 2008. For financial years ending after 30 June 2008 DMFs must lodge their reporting forms at the latest by 4 months after the DMF financial year end.

Audit requirements

The reporting form does not need to be audited. However the data should be based on the DMF’s financial statements and must be subject to the same processes and controls that cover the review and authorisation of that accounting data. It is the responsibility of the board or trustee or senior management of the DMF to ensure that the information lodged with APRA is accurate and complete.

Method of submission

Forms will be submitted electronically to APRA using ‘Direct to APRA’ (D2A) software unless alternative arrangements are made with APRA.

Definitions

Definitions for data reporting items required by this form have been provided where possible in the instructions under the section headed ‘Specific instructions’.

Basis of preparation

Accounting basis of preparation

Important: Report all items using the same recognition and measurement basis that is used in your audited financial statements. The instructions below are specific to entities that are reporting and complying with all applicable Australian Accounting Standards. In those instances where an entity does not comply with a AASB standard specifically identified below, report on the basis used in your audited financial statements.

Unit of measurement

This form is to be presented in Australian dollars (AUD), rounded to thousands of dollars, with no decimal places. Amounts denominated in a currency other than Australian currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.

Assets

Fair value of assets

Financial assets should be valued in accordance with AASB 132 Financial Instruments: Presentation (AASB 132) at fair value.

Liabilities

OCL is to be reported in accordance with DRF 210.0 Outstanding Claims Liabilities (DRF 210.0). All other liabilities are to be reported in accordance with applicable Australian Accounting Standards.

Netting

Unless otherwise specifically stated, DMFs can take advantage of netting agreements in relation to disclosure of data items in this form. DMFs are to comply with the prerequisite for netting outlined in Australian accounting standards notably AASB 7 Financial Instruments: Disclosures (AASB 7), AASB 139 Financial Instruments: Recognition and Measurement (AASB 139) and AASB 132.

Term to maturity

Reference to term to maturity refers to residual term to maturity not original term to maturity.

Related party/entity

Related party/entity is to be interpreted in accordance with AASB 124 Related Party Disclosures (AASB 124).

Parent entity is to be interpreted in accordance with AASB 127 Consolidated and Separate Financial Statements (AASB 127).

Subsidiaries are to be interpreted in accordance with AASB 127.

Associates are to be interpreted in accordance with AASB 128 Investments in Associates (AASB 128).

Joint ventures are to be interpreted in accordance with AASB 131 Interests in Joint Ventures (AASB 131).

Specific instructions

Assets

  1. Current assets

Current assets are to be interpreted in accordance with the meaning provided in AASB 101 Presentation of Financial Statements (AASB 101).

1.1.Cash and cash equivalents

These items 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 (refer to DRF 310.0 Statement of Financial Performance (DRF 310.0)).

1.1.1.Cash at bank and in hand

Includes notes and coins, overnight money, cash management trusts, and commercial paper.

1.1.2.Short term bank deposits

Include deposits available on demand (11am accounts, money market or 24-hour money), that are used by the DMF for daily liquidity/operations.

Do not include any deposits at call that are held as part of the DMF’s investments. These are to be disclosed as investments in item 3 of this form.

Do not include bank overdraft balances.

1.1.3.Total cash and cash equivalents

This is the sum of all cash and cash equivalents reporting items above.

1.2.Receivables

1.2.1.Contribution/deductible receivables

Report the total of contribution/deductible that is receivable from members.

1.2.1.1.    Due

Report the outstanding balance of contribution/deductibles receivable from members.

1.2.1.2.    Provision for doubtful debts

Report the value of contribution/deductible where collection is assessed as doubtful.

1.2.1.3.    Net amount receivable

This is the value of contribution/deductibles receivable, net of any associated provision for doubtful debts.

1.2.2.Insurance and other recoveries outstanding

Report insurance and other recoveries outstanding. These include claims recoveries that may consist of recoveries from subrogation, salvage and other. Also include any recoveries due from Government under schemes and arrangements established in relation to DMF matters.

1.2.2.1.    Due

Report outstanding balance of ‘Insurance and other recoveries outstanding’.

1.2.2.2.    Provision for doubtful debts

Report the value of insurance and other recoveries outstanding where collection is assessed as doubtful.

1.2.2.3.    Net amount receivable

This is the value of insurance and other recoveries outstanding, net of any associated provision for doubtful debts.

1.2.3.1.2.3.  Investment income receivable

Report the value of investment income receivable.

1.2.4.Calls and other receivables

1.2.4.1.    Calls receivable

Report the value of calls receivable.

1.2.4.2.    Other receivables

Report the value of other receivables

1.2.4.3.    Calls and other receivables

Report the total value of calls and other receivables.

1.2.5.Total receivables

This is the total value of all receivables.

1.3.Investments

Report the value of investments which are designated as being current assets only. The non-current value of these investments is to be reported separately in item 2.2 of this form.

Note: derivative instruments that are used to hedge investments are not to be reported in item 1.3. The current value of derivative instruments are to be separately reported in item 1.5.3 of this form.

Any changes in the values at which such investments are measured must be recognised as revenues (or losses) in DRF 310.0 in the reporting period in which the changes occur.

1.4.Deferred tax assets

Report the value of all deferred tax assets.

1.5.Other assets

1.5.1.Deferred costs

Report the value of all deferred costs.

1.5.2.Prepaid expenses

Reflects payment for services not fully delivered (e.g. payments for subscriptions, rental, and interest expense).

1.5.3.Derivative financial instruments

Include all current asset derivatives consistent with the classification and measurement basis used for derivatives in accordance with AASB 7, AASB 132 and AASB 139.

1.5.4.Other

Report the value of any other asset that has not been reported elsewhere.

1.5.5.Total other assets

The sum of all other assets.

1.6.Total current assets

The sum of all current asset categories.

  1. Non-current assets

Non-current assets are to be interpreted in accordance with the meaning provided in AASB 101.

Report the following items on a non-current basis using the instructions provided under ‘current assets’.

·‘Receivables’ (item 2.1) – include ‘Contribution/deductible receivables’, ‘Insurance and other recoveries outstanding’ and ‘Other receivables’.

·‘Investments’ (item 2.2)

·‘Deferred tax assets’ (item 2.5)

·‘Other assets’ (item 2.6).

All other non-current assets should be reported as follows:

2.3.Property, plant and equipment

2.3.1.Property, plant and equipment

This includes property, motor vehicles, office furniture and equipment, including computer equipment and software.

2.3.2.Accumulated depreciation/impairment

Report total depreciation and impairment for all property, plant and equipment items here.

2.3.3.Total property, plant and equipment net of depreciation/ impairment

Deduct depreciation/impairment from the gross values for property, plant and equipment.

2.4.Intangible assets

2.4.1.Intangible assets

Classification of assets as intangible assets must be in accordance with AASB 138 Intangible Assets.

2.4.2.Accumulated amortisation and impairment

Include the total amount of accumulated amortisation and impairment over the period from the date of acquisition to the end of the reporting period.

2.4.3.Intangible assets after amortisation and impairment

The sum of all intangible assets above net of amortisation and impairment.

2.7.Total non-current assets

The sum of all non-current assets.

  1. Total assets

The sum of all current assets and total non-current assets.

Liabilities

  1. Current liabilities

Current liabilities are to be interpreted in accordance with the meaning provided in AASB 101.

4.1.Trade and other payables

Report the total of trade and other payables.

4.2.Outstanding claims

This is the DMF’s liability for outstanding claims and recognises the potential cost to the DMF of settling claims which it has incurred at the reporting date but which have not been finalised. The amount reported is to be calculated in accordance with DRF 210.0.

4.3.Unearned contribution

Report the value of all unearned contribution.

4.4.Interest bearing liabilities

4.6.3.Finance lease liability

Report the value of finance lease liability to be payable in less than 12 months.

4.6.4.Other loans

Report all other loans not reported above.

4.6.5.Total borrowings

Is the sum of all borrowings.

4.5.Income tax liabilities

4.5.1.Current tax liabilities

Report the value of current tax liabilities.

4.5.2.Deferred tax liabilities

Report the value of deferred tax liabilities.

4.5.3.Total income tax liabilities

Is the sum of all income tax liabilities.

4.6.Provisions

4.6.1.Dividends/Distributions

Report all provisions raised for dividends/distributions.

4.6.2.Employee entitlements

This includes provisions for long service leave, annual leave, staff housing loan benefits, health fund subsidy and other employee entitlements. The value of employee entitlements should be measured and recognised in accordance with the requirements of AASB 119 Employee Benefits (AASB 119).

4.6.3.Other

Report all other provisions not reported above.

4.6.4.Total provisions

Is the sum of all provisions.

4.7.Other liabilities

4.7.1.Derivative financial instruments

Include all non-current asset derivatives consistent with the classification and measurement basis used for derivatives in accordance with AASB 7, AASB 132 and AASB 139.

4.7.2.Other

Report other current liabilities that are not reported elsewhere on the form.

4.7.3.Total other liabilities

Is the sum of all other liabilities.

4.8.Total current liabilities

Is the sum of all current liabilities.

  1. Non-current liabilities

Non-current liabilities are to be interpreted in accordance with the meaning provided in AASB 101.

5.1.- 5.7. Non-current liabilities

Report on a non-current basis using the instructions provided for under ‘current liabilities’.

5.8.Total non-current liabilities

Is the sum of all non-current liabilities.

  1. Total liabilities

The sum of all current liabilities and total non-current liabilities.

  1. Net assets

Is the difference between ‘Total assets’ (item 3) and ‘Total liabilities’ (item 6).

  1. Equity

8.1.Share capital

8.1.1.Fully paid up capital

Report value of all fully paid up capital.

8.1.2.Other capital

Include all other capital not reported above.

8.1.3.Total share capital

Is the sum of ‘Fully paid up capital’ and ‘Other capital’.

8.2.Reserves

8.2.1.Asset revaluation reserve

Report the value of asset revaluation reserve.

8.2.2.Other reserves

Include all reserves except asset revaluation reserve, for example general reserves and capital profits reserve. Report dividend reinvestment plan reserve in this reporting item.

8.2.3.Total reserves

Sum the reporting items listed under “Reserves”.

8.3.Retained profits/ Accumulated losses/ Undistributed income/loss at the end of the financial year

Represents the sum of opening balance of retained profits or accumulated losses at the beginning of the period plus current profit or loss after tax and extraordinary items for the reporting period and after any transfers to or from reserves.

8.4.Total equity

This represents the sum of ‘Total share capital’, ‘Total reserves’ and ‘Retained profits/Accumulated losses/Undistributed income/loss at the end of the financial year’.

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