Financial Sector (Collection of Data) (reporting standard) determination No. 1 of 2007 - MRS 120.0 - Capital Base

Administered by Department of the Treasury

Legislation au F2007L02075 Not in force Legislative Instrument

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Financial Sector (Collection of Data) (reporting standard) determinations Nos. 1- 17 of 2007

 

 

EXPLANATORY STATEMENT

 

Prepared by the Australian Prudential Regulation Authority (APRA)

Issued by the authority of APRA

 

Financial Sector (Collection of Data) Act 2001 (the Act), paragraph 13(1)(a)

 

Acts Interpretation Act 1901, subsection 33(3)

 

 

Under paragraph 13(1)(a) of the Act, APRA may, by writing, determine reporting standards with which financial sector entities must comply.  Such standards relate to reporting financial or accounting data and other information regarding the business or activities of the entities.  Subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to issue an instrument the power shall, unless the contrary intention appears, be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to amend or vary any such instrument.

 

Financial Sector (Collection of Data) (reporting standard) determinations Nos. 1 - 17 of 2007 (the instruments) respectively revoke and replace the reporting standards (which were originally determined on 29 June 2004 to have effect from 30 June 2004) outlined below in respect of corporations to which section 5A of the Act applies (MDOs):

 

MRS 120.0: Capital Base

MRS 130.0: Off Balance Sheet Business – Direct Credit Substitutes Provided

MRS 130.1: Off Balance Sheet Business – Liquidity Support Facilities Obtained

MRS 130.2: Off Balance Sheet Business – Charges Granted

MRS 130.3: Off Balance Sheet Business – Credit Support Received

MRS 140.0: Investments – Direct Interest Rate Holdings

MRS 140.1: Investments – Direct Equity Holdings

MRS 140.2: Investments – Direct Property Holdings

MRS 140.3: Investments – Loans and Advances

MRS 140.4: Investments – Assets Indirectly Held

MRS 150.0: Asset Exposures

MRS 160.0: Derivative Activity

MRS 210.0: Outstanding Claims Liabilities

MRS 300.0: Statement of Financial Position

MRS 310.0: Statement of Financial Performance

MRS 310.2: Claims Expense and Reinsurance Recoveries

MRS 310.3: Investment and Operating Income and Expenses

 

Under subsection 15(2) of the Act, APRA has declared that the reporting standards shall begin to apply to all MDOs on the later of 30 June 2007 and the date of registration of the instruments on the Federal Register of Legislative Instruments.

 

  1.    Background

 

This Explanatory Statement explains the changes being made by APRA to the reporting framework for MDOs in response to Australian equivalents to international financial reporting standards (AIFRS).

 

Each reporting standard comprises: (1) the body of the reporting standard itself (which contains details about inter alia when returns under the standards must be lodged with APRA); (2) one or more reporting forms which must be completed by MDOs covered by the reporting standard; and (3) a set of detailed technical instructions regarding completion of the form.

 

The changes to Australian accounting standards that flow from the adoption of AIFRS, if left unadjusted, would automatically flow through to APRA’s reporting framework. APRA’s objective in its approach to AIFRS is to align its reporting  standards with Australian accounting standards and principles to the extent practicable, as the latter provide a widely accepted basis for the recognition and measurement of assets, liabilities, equity, revenue and expenses

 

 

2.      Purpose of the instrument

The purpose of each instrument is to revoke those reporting standards applying to MDOs and to replace them with corresponding standards which incorporate appropriate adjustments (new standards).  APRA considered that it would be clearer and more effective to consolidate the necessary changes within new standards.  For that reason, APRA decided to revoke and replace reporting standards rather than to amend them. APRA has also taken this opportunity to update the formatting of instructions attaching to all MDO reporting standards. Therefore APRA has revoked all MDO reporting standards and redetermined them.

 

3.      Operation of the instruments

 

The instruments determine the new standards.

 

The forms and instructions have been revised taking account of the impact of AIFRS. The core changes are as follows and most are due to AIFRS:

 

  • Terminology changes – Use of AIFRS and prudential terminology (e.g. Market value replaced with Fair value, Provision for deferred tax replaced with Deferred tax liability, Unrealised gain on derivatives replaced with Derivative financial instruments);
  • Addition - eg Paid up ordinary shares and Other liabilities; and
  • Deleted – eg Goodwill amortisation.

 

In addition, there have also been changes to update the formatting and references of the instruction guides together with improvement of wording. These changes do not affect the content of the reporting standards or instruction guides.

 

4.      Consultation

 

Consultation with all 7 MDOs has been held over a 2 week period.

 

5.      Regulation Impact Statement

 

A RIS or BCC report is not mandatory as the proposal has a low impact on business and individuals (including compliance costs).

Overview

The Financial Sector (Collection of Data) (reporting standard) determinations Nos. 1- 17 of 2007 were enacted under the authority of the Australian Prudential Regulation Authority (APRA) to address the need for updated reporting standards for Managed Investment Schemes (MDOs) in the financial sector. These determinations, made under the Financial Sector (Collection of Data) Act 2001, replace existing reporting standards to incorporate Australian equivalents to International Financial Reporting Standards (AIFRS). The objective of these determinations is to align APRA’s reporting standards with Australian accounting standards and principles, ensuring that the recognition and measurement of assets, liabilities, equity, revenue, and expenses are consistent and widely accepted. APRA sought to achieve this by revoking and redetermining the relevant reporting standards, rather than amending them, to provide a clearer and more effective framework. The changes also included updating the terminology, formatting, and instructions to reflect the impact of AIFRS while maintaining the core content of the reporting standards.

Scope and Application

The Financial Sector (Collection of Data) (reporting standard) determinations Nos. 1-17 of 2007 apply to financial sector entities, specifically Major Depository Organisations (MDOs) within the meaning of the Financial Sector (Collection of Data) Act 2001. The Act grants the Australian Prudential Regulation Authority (APRA) the power to determine reporting standards for these entities, which relate to the collection of financial, accounting, and business activity data. The instruments revoke and replace the previously existing reporting standards to incorporate changes arising from the adoption of Australian equivalents to international financial reporting standards (AIFRS). These new standards necessitate adjustments to terminology, additions to reporting requirements, and deletions of outdated items, alongside updates to the formatting and instructions for the completion of reporting forms. The instruments are effective from 30 June 2007, applying to all MDOs on the later of this date or the registration of the instruments on the Federal Register of Legislative Instruments. APRA has ensured consultation with all relevant MDOs before finalising these determinations. Given the low impact on business and individuals, a Regulation Impact Statement or Business Case Statement was not deemed necessary.

Key Provisions

The Financial Sector (Collection of Data) (reporting standard) determinations Nos. 1-17 of 2007 (the instruments) under the Financial Sector (Collection of Data) Act 2001 (the Act) serve to revise and replace the existing reporting standards that apply to financial sector entities, specifically Major Deposit-Taking Institutions (MDOs) (sections 1-3). These instruments revoke and replace previous reporting standards (MRS 120.0 to MRS 310.3) with new ones that incorporate adjustments due to the adoption of Australian equivalents to international financial reporting standards (AIFRS). The purpose of these new standards is to ensure alignment with Australian accounting standards and principles, providing a widely accepted basis for the recognition and measurement of assets, liabilities, equity, revenue, and expenses (section 2). The instruments themselves detail the new standards, forms, and instructions, which have been revised to reflect AIFRS impacts, including terminology changes, additions, and deletions, while also updating the formatting and references of the instruction guides (section 3). Under these instruments, MDOs are obligated to comply with the new reporting standards by lodging returns with the Australian Prudential Regulation Authority (APRA) as specified within the standards themselves. The new standards detail the precise timing and manner in which these returns must be submitted. The reporting forms, which are part of these instruments, must be completed accurately and submitted within the stipulated timeframes. The detailed technical instructions provided within the instruments guide MDOs on how to correctly complete these forms, ensuring compliance with the new standards (sections 1, 2). The revised standards and instructions reflect changes such as terminology updates, additions of new categories, and the deletion of outdated items, all aimed at maintaining consistency with AIFRS. Failure to comply with the new reporting standards may result in regulatory consequences. While specific penalties are not detailed in the instruments, non-compliance could lead to enforcement actions by APRA, including fines, corrective measures, or other regulatory sanctions. APRA may also request additional information or clarification from MDOs to ensure compliance. The precise nature and severity of penalties would depend on the nature and extent of the non-compliance, as well as any resulting harm to the financial sector or consumers. However, the instruments do not specify maximum penalties, indicating that these would be determined on a case-by-case basis in accordance with the Act and related regulations (section 3). APRA has taken the opportunity to update the formatting of the instructions attached to all MDO reporting standards, ensuring clarity and consistency in the guidance provided to MDOs. This update does not affect the content of the reporting standards or the instruction guides but aims to improve usability and compliance. Consultation with all seven MDOs was conducted over a two-week period to ensure that the changes were understood and could be implemented effectively (section 4). Given the low impact of these changes on business and individuals, a Regulation Impact Statement or Business Cost-Benefit report was deemed unnecessary (section 5).

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Financial Sector (Collection of Data)
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Definitions & Interpretation
Reporting & Disclosure Obligations
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.