Document ID: chunk:federal_register_of_legislation:F2017L01028:body:0:p6
Version: federal_register_of_legislation:F2017L01028
Segment Type: other
Provision Reference: 
Character Range: 14680–17643

transactions and other information recorded on the Australian books of the body corporate authorised by APRA to carry on banking business as per the Banking Act 1959. Includes transactions and positions with both residents and non-residents that are recorded on the Australian books of these entities.

Do not consolidate positions, transactions and other information recorded on the books of Extended Licensed Entities (ELEs), of any other entity not consolidated at Level 1 (for example, related parties such as subsidiaries, SPVs or parent entities) and of overseas-based entities (e.g. overseas-based branches and offshore banking units (within the meaning of section 128AE of the Income Tax Assessment Act 1936)).

Reporting basis and unit of measurement

ARF 731.3B should be completed as at the last day of the stated quarter (i.e. March, June, September and December). Foreign subsidiary banks and branches of foreign banks should submit the completed return to APRA within 28 calendar days after the end of the reporting quarter.

Foreign subsidiary banks and branches of foreign 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 731.3B in accordance with Australian Accounting Standards unless otherwise specified.

Netting of assets and liabilities

Positions should generally be reported on a gross basis. However, reporting entities that are head offices exclude their claims on affiliates in any other country (as the data is reported on a consolidated basis).

This does not apply to derivative contracts.

Valuation

Assets and liabilities should be measured in accordance with Australian accounting standards.

Note: 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.

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

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