Document ID: chunk:federal_register_of_legislation:F2018L00369:body:0:p6
Version: federal_register_of_legislation:F2018L00369
Segment Type: other
Provision Reference: 
Character Range: 14066–16617

hedge, the exchange differences should be recognised directly in equity.

    The ineffective portion of the exchange differences in all hedges would be recognised in profit and loss; and

    4.             translation of financial reports of foreign operations.

    A foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.

         * Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.

         * Translation of financial reports should otherwise follow the requirements in AASB 121.

Valuation

Foreign currencies are to be converted to AUD using the exchange rate effective as per the reporting date. Amounts should be expressed in millions of AUD with no decimal point.

Specific instructions

Part 1: Statement of assets and liabilities

All figures should be prepared in accordance with Australian accounting standards.

Part 2: Off balance sheet business

The off balance sheet information should be prepared in accordance with the instructions to Reporting Form ARF 112.2A Standardised Credit Risk - Off Balance Sheet Exposures.

Part 3: Credit risk profile

The credit risk profile of on and off balance sheet business should be prepared in accordance with the instructions to Reporting Form ARF 110.0 Capital Adequacy.

Part 4: Impaired assets (facilities)

Impaired assets (facilities) information should be prepared in accordance with the instructions to Reporting Form ARF 220.0 Impaired Facilities.

General provision refers to "General Reserve for Credit Losses" as defined in APS 111 Capital Adequacy: Measurement of Capital and APS 220 Credit Quality.

    [1]  For banks with offshore operations and/or offshore controlled entities.
    [2]  Securitisation exposures are defined in accordance with APS 120.
    [3]  Monetary items are defined to mean units of currency held and assets and liabilities to be received or paid in a fixed or determinable number of units of currency. Spot rate means the exchange rate for immediate delivery.
    [4]  Examples of non-monetary items include amounts prepaid for goods and services (e.g. prepaid rent); goodwill; intangible assets; physical assets; and provisions that are to be settled by the delivery of a non-monetary asset.