Document ID: chunk:federal_register_of_legislation:F2018L00367:body:0:p6
Version: federal_register_of_legislation:F2018L00367
Segment Type: other
Provision Reference: 
Character Range: 13986–16939

standards, notably AASB 127 and AASB 3.

Exclude from the accounting consolidated group SPVs whose assets have satisfied the clean sale requirements set down in APS 120 (refer to Securitisation deconsolidation principle).

Reporting period

The form is to be completed as at the last day of the stated reporting quarter on a financial year-to-date basis of the ADI. Australian-owned banks, foreign subsidiary banks, branches of foreign banks and other ADIs should submit the completed form to APRA within 25 business days after the end of the relevant reporting quarter. Credit Unions, Cairns Penny Savings & Loans Limited and Building Societies should submit the completed form to APRA within 15 business days after the end of the relevant reporting quarter.

Unit of measurement

Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates (AASB 121).

The general requirements of AASB 121 for translation are:

     1. foreign currency monetary items outstanding at the reporting date must be translated at the spot rate at the reporting date;[3]

     2. foreign currency non-monetary items that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction;[4]

     3. foreign currency non-monetary items that are measured at fair value will be translated at the exchange rate at the date when fair value was determined.

    Transactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 139 Financial Instruments: Recognition and Measurement (AASB 139).  However, those foreign currency derivatives that are not within the scope of AASB 139 (e.g. some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121.

    For APRA purposes equity items must be translated using the foreign currency exchange rate at the date of investment or acquisition. Post-acquisition changes in equity are required to be translated on the date of the movement.

    As foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.

    Exchange differences should be recognised in profit and loss in the period which they arise. For foreign currency derivatives, the exchange differences would be recognised immediately in profit and loss if the hedging instrument is a fair value hedge. For derivatives used in a cash flow 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