Financial Sector (Collection of Data) (reporting standard) determination No. 11 of 2007 - MRS 150.0 - Asset Exposures

Administered by Department of the Treasury

Legislation au F2007L02101 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 to address the need for updating and aligning the reporting standards for Major Deposit-Taking Institutions (MDOs) under the Financial Sector (Collection of Data) Act 2001. This Act empowers the Australian Prudential Regulation Authority (APRA) to determine reporting standards for financial sector entities, ensuring compliance with regulations regarding the reporting of financial and accounting data. The determinations aim to incorporate adjustments in response to the adoption of Australian equivalents to international financial reporting standards (AIFRS). APRA decided to revoke and replace the existing reporting standards to ensure clarity and effectiveness in the reporting framework. The new standards include updates to terminology, additional reporting requirements, and formatting improvements, all designed to maintain consistency with Australian accounting standards and principles. APRA consulted with the seven MDOs affected by these changes before issuing the determinations, and a Regulation Impact Statement was deemed unnecessary due to the minimal impact on business and individuals. The determinations were issued under the authority of APRA, in line with the provisions of the Financial Sector (Collection of Data) Act 2001 and the Acts Interpretation Act 1901. The policy objective is to create a reporting framework that aligns with AIFRS while maintaining a widely accepted basis for the recognition and measurement of assets, liabilities, equity, revenue, and expenses. The new standards, which became effective from 30 June 2007, reflect APRA's commitment to updating the financial reporting requirements to ensure they remain relevant and effective in a changing regulatory environment.

Scope and Application

The Financial Sector (Collection of Data) (reporting standard) determinations Nos. 1-17 of 2007, issued by the Australian Prudential Regulation Authority (APRA), apply to major deposit-taking institutions (MDOs) as defined under section 5A of the Financial Sector (Collection of Data) Act 2001. These standards mandate the reporting of financial and accounting data and other relevant business or activity information to APRA. The instruments, which revoke and replace previous reporting standards determined on 29 June 2004, aim to align APRA’s reporting framework with Australian equivalents to international financial reporting standards (AIFRS). They incorporate necessary adjustments to terminology and formatting while maintaining the core content of the reporting standards. The new standards came into effect on the later of 30 June 2007 and the date of registration of the instruments on the Federal Register of Legislative Instruments. These determinations cover a comprehensive set of reporting standards, each detailing specific requirements for data collection, reporting forms, and technical instructions, and are designed to ensure consistency and compliance among MDOs.

Key Provisions

The Financial Sector (Collection of Data) (reporting standard) determinations Nos. 1-17 of 2007 (the instruments) primarily focus on the replacement of existing reporting standards for Managed Investment Schemes (MDOs) under the Financial Sector (Collection of Data) Act 2001 (the Act). These new determinations aim to update the reporting framework to align with Australian equivalents to international financial reporting standards (AIFRS) while maintaining the integrity of the data collected by the Australian Prudential Regulation Authority (APRA). Section 13(1)(a) of the Act allows APRA to determine reporting standards, and these instruments revoke and replace previously established standards (sections MRS 120.0 to MRS 310.3) with new ones that incorporate necessary adjustments and terminology changes in line with AIFRS. The changes also include updates to the formatting and references of the instruction guides, although the core content of the reporting standards remains unchanged. The obligations imposed by these instruments require MDOs to comply with the new reporting standards and to complete the revised reporting forms as per the detailed technical instructions provided. MDOs must lodge the required returns with APRA by the specified deadlines, ensuring that the data submitted is accurate and reflects the adjustments made in accordance with AIFRS. This includes, but is not limited to, changes in terminology, additions, and deletions in the reporting forms. The new standards mandate that MDOs use terms such as "Fair value" instead of "Market value" and "Deferred tax liability" instead of "Provision for deferred tax," among other changes. MDOs must also ensure that they include new items such as "Paid up ordinary shares" and exclude items such as "Goodwill amortisation" where applicable. Failure to comply with the reporting standards set out in these instruments may result in civil or criminal penalties. Under the Act, APRA has the authority to impose fines and other sanctions for non-compliance. The maximum penalties for breaches of the Act can include substantial fines, which may be determined based on the severity and impact of the non-compliance. Additionally, persistent or severe breaches may lead to more severe consequences, including potential legal action against the MDO or its directors. It is important for MDOs to ensure strict adherence to these new reporting standards to avoid any legal repercussions and maintain regulatory compliance.

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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.