Financial Sector (Collection of Data) (reporting standard) determination No. 14 of 2007 - MRS 300.0 - Statement of Financial Position

Administered by Department of the Treasury

Legislation au F2007L02105 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 the reporting standards for Major Deposit-taking Institutions (MDOs) in light of the adoption of Australian equivalents to International Financial Reporting Standards (AIFRS). These determinations, made by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001, aim to align APRA’s reporting standards with Australian accounting standards and principles to the extent practicable. The instruments revoke the existing reporting standards and replace them with new ones that incorporate necessary adjustments, including terminology changes and updates to formatting and references. This alignment is crucial for ensuring that the recognition and measurement of assets, liabilities, equity, revenue, and expenses are consistent with widely accepted accounting practices. The instruments came into effect on the later of 30 June 2007 and the date of their registration on the Federal Register of Legislative Instruments.

Scope and Application

The Financial Sector (Collection of Data) (reporting standard) determinations Nos. 1-17 of 2007 apply to entities within the financial sector, specifically those that fall under section 5A of the Financial Sector (Collection of Data) Act 2001, which includes authorised deposit-taking institutions and other financial entities, referred to as Managed Deposit Institutions (MDOs). These determinations establish new reporting standards that MDOs must comply with when submitting financial and accounting data to the Australian Prudential Regulation Authority (APRA). The standards cover various aspects of financial reporting, including capital bases, investments, asset exposures, derivative activities, and other financial performance metrics. The instruments, which include the body of the reporting standard, corresponding reporting forms, and detailed technical instructions, aim to align the reporting framework with Australian equivalents to International Financial Reporting Standards (AIFRS) and to update the formatting and references of the instruction guides. The changes, which have been determined after consultation with all relevant MDOs, are designed to reflect the adoption of AIFRS, incorporating necessary adjustments such as terminology changes and the addition or deletion of certain reporting items. The reporting standards are applicable nationally, as they pertain to entities operating under the jurisdiction of the Commonwealth of Australia. These determinations revoke and replace the previously established reporting standards, ensuring that the MDOs' reporting practices are current and compliant with evolving financial reporting standards.

Key Provisions

The main operative sections of 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) include the revocation and replacement of existing reporting standards for Major Domestic Entities (MDOs) with new standards. These new standards have been developed to incorporate appropriate adjustments in response to the Australian equivalents to international financial reporting standards (AIFRS). The instruments outline the new standards, the associated reporting forms, and detailed technical instructions for completing these forms. Each standard specifies the timing for lodging returns with the Australian Prudential Regulation Authority (APRA). Section 13(1)(a) of the Act authorises APRA to determine these reporting standards, while subsection 15(2) of the Act mandates that these standards apply from the later of 30 June 2007 or the date of registration of the instruments on the Federal Register of Legislative Instruments. The obligations imposed by these instruments on MDOs include the requirement to comply with the newly determined reporting standards, which include specific reporting forms and technical instructions. MDOs must lodge their financial and accounting data with APRA in accordance with the specified timelines. The standards also mandate the use of updated terminology that aligns with AIFRS and prudential terminology, which involves changes such as replacing "Market value" with "Fair value" and "Unrealised gain on derivatives" with "Derivative financial instruments." Additionally, MDOs must ensure that their reporting forms and technical instructions are completed accurately and in accordance with the detailed instructions provided. These obligations are designed to ensure consistency and transparency in the reporting of financial data, facilitating effective regulation and oversight by APRA. Failure to comply with the new reporting standards and requirements set forth in these instruments may result in various civil and administrative consequences. While the explanatory statement does not detail specific penalties, breaches of the Act or the regulations may generally lead to enforcement actions by APRA. Such actions could include demands for corrective reporting, fines, or other administrative measures intended to ensure compliance. Although the explanatory statement indicates that a Regulation Impact Statement or Business Cost-Benefit report is not mandatory due to the low impact on business and individuals, non-compliance could still incur significant costs for MDOs in terms of regulatory scrutiny, potential penalties, and the need to rectify non-compliant reports. It is also important for MDOs to be aware that ongoing non-compliance could affect their standing with APRA and potentially lead to more severe regulatory consequences.

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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.