Document ID: chunk:federal_register_of_legislation:F2024L00434:body:0:p33
Version: federal_register_of_legislation:F2024L00434
Segment Type: other
Provision Reference: 
Character Range: 122282–126058

that do not form an integral part of the effective interest rate of those debt securities, as defined in AASB 9.

Interest income earned                              Interest earned from customers and issuers of securities during the period, including coupon payments.

                                                    Report interest income earned in accordance with Australian Accounting Standards.

                                                    It includes:

                                                         * payments of scheduled interest distributions received during the period;
                                                         * the interest component of funds received from zero coupon security repayments, repurchase agreements and securities lending activity; and
                                                         * scheduled interest payments that were not received during the period (including scheduled distributions on hybrid securities).

                                                    It excludes: non-interest payments received from customers or issuers of debt securities (such as principal payments or fees) that do not form an integral part of the effective interest rate of those debt securities, as defined in AASB 9.

Interest-only                                       Refers to loans on which only interest is paid during a set period and no principal is automatically amortised.

                                                    The loans will typically revert to principal-and-interest repayments at the end of the interest-only period.

                                                    Only report loans as interest-only loans during their interest-only period. Once the loan has reverted to principal-and-interest repayments, the loan is classified as amortising in credit outstanding from that period.

Interest payable                                    Refers to interest incurred but not yet paid.

Interest rate                                       Means the contractual rate to be paid or received by the customer/counterparty/debtholder. It excludes any fees charged to the customer/counterparty/debtholder.

                                                    Where there is more than one contractual rate, and the rate paid by the customer depends on their behaviour in that period, report the contractual rate that applied given their behaviour.

                                                    For example, for any deposit account where the contractual interest rate varies according to the behaviour of the customer (e.g. savings accounts that pays a higher rate of interest if fewer than a certain number of withdrawals are made per month or if the value of funds in the account increases over the month), report the contractual interest rate reflecting the customer's behaviour.

                                                    Some products have specific treatments for reporting of interest rates:

                                                    For credit cards, calculate the interest rate to be reported as interest charged on credit cards during the month divided by the relevant balance × 100%.

                                                    For offset accounts, report the interest rate as the contractual rate payable on the linked loan account, divided by the proportion of the offset account balance that is offset against the loan balance. For instance, if the balance in the offset account is fully offset against the loan balance, then the contractual rate on the loan account would be the interest rate reported on the offset account. However, if only half of the balance in the offset account is offset against the relevant loan balance, then report the