Document ID: chunk:federal_register_of_legislation:F2017L01033:body:0:p6
Version: federal_register_of_legislation:F2017L01033
Segment Type: other
Provision Reference: 
Character Range: 14043–17038

APS 120, or the ADI elects to treat the securitised assets as on-balance sheet assets under Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk or Prudential Standard APS 113 Capital Adequacy: Internal Ratings-based Approach to Credit Risk, such exposures are to be reported as on-balance sheet assets in APARF 731.4.

Reporting basis and unit of measurement

ARF 731.4 should be completed as at the last day of the stated quarter (i.e. March, June, September and December). Australian-owned banks should submit the completed return to APRA within 28 calendar days after the end of the reporting quarter.

Australian-owned banks are to complete the return in AUD millions to three (3) decimal places (with the data formatted to the nearest million).

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).

Report all items on ARF 731.4 in accordance with Australian Accounting Standards unless otherwise specified.

Valuation

Assets and liabilities should be measured in accordance with Australian accounting standards. When reporting the data, reporting entities should also ensure that all figures be prepared in accordance with applicable Australian accounting principles.

International financial claims should be reported gross of specific provisions and General Reserve for Credit Losses as defined by Prudential Standard APS 220 Credit Quality. Provisions and reserves are not to be included in ARF 731.1, ARF 731.3A or ARF 731.3B.

As a general rule, it is recommended that financial claims belonging to the banking book be valued at face values or cost prices and financial claims belonging to the trading book be valued at market or fair values which is largely consistent with AASB 139 Financial Instruments: Recognition and Measurement.

Financial claims resulting from derivative contracts should be valued at fair values (i.e. current credit exposure calculated as the sum of all positive fair values of derivative contracts outstanding after taking account of legally enforceable bilateral netting agreements) as this ensures consistency not only with the BIS OTC derivatives statistics but also with the valuation principles for all other on- and off-balance sheet items in the BIS international financial statistics. Negative fair values of derivative contracts are considered to represent financial liabilities and are therefore by definition excluded from the reporting of financial claims.

Standard Business Reporting (SBR)
The accounting type (i.e. credit or debit) is stated for all monetary items and represents the natural accounting type of the item collected.

Specific instructions

Terms highlighted in bold italics indicate that the definition is provided in these instructions.

Part A:

Claims on an immediate borrower basis: by remaining maturity

SBR: submit item 1 with accounting type of debit (assets).
SBR: submit item 2