Document ID: chunk:federal_register_of_legislation:F2023L00315:body:0:p14
Version: federal_register_of_legislation:F2023L00315
Segment Type: other
Provision Reference: 
Character Range: 37689–40667

security for the loan provided by the reporting insurer.

     (3) Provision for impairment

Report the aggregate provision for impairment applying to the particular loan portfolio / classifications listed (e.g. households).

For the purposes of the APRA forms, impairment means that there exists reasonable doubt that amounts of principal (or fair value) and any associated amounts of accrued income (e.g. interest, dividends, distributions associated with the investment / asset) will be able to be collected by the Insurer.

     (4) Balance outstanding net of provision for impairment

This is automatically calculated as Column 1 less Column 3 in Section 4.

     1.1.               Households

The counterparty is an individual, or group of individuals, whose dealings with the reporting insurer are for personal or household purposes. This does not include circumstances in which the counterparty is dealing with the reporting insurer in relation to a business or enterprise, regardless of how that business or enterprise is structured.

     1.2.               Private unincorporated businesses

The counterparty is a Private Unincorporated Business, being any enterprise issued with an Australian Business Number that is not a body corporate, as defined in the Corporations Act 2001.

     1.3.               Private trading corporations

Refer to the definition of Item 2.6 in Section 1.

     1.4.               Other

The counterparty is any other counterparty not specifically listed in Item 1 in Section 4.

It is automatically calculated as Item 1.5 less the sum of Items 1.1 to 1.3.

     1.5.               Total loans and advances

This is, as at the relevant date, the principal amount of loans and advances provided, including any accrued interest. Loans and advances are those financial assets categorised as 'Loans and receivables' in the Australian Accounting Standards other than 'Trade receivables' and 'Cash'.

     2.1.               Are contracted at fixed rates

This relates to loans and advances that have been funded at fixed interest rates, i.e. interest rates that do not fluctuate over the term, or life of the agreement.

     Are contracted on a variable rate basis

This relates to loans and advances that have been funded on a variable rate basis. Variable rates are interest rates that fluctuate over the term, or life, of the agreement, causing changes in either the payments or length of the loan term.

     Are contracted on an unsecured basis

This relates to loans and advances where assets have not been pledged to satisfy the repayment of a debt in the case of default by the borrower.

     Repayment is past due date 90 days or more but < 1 year

This relates to loans and advances where the following criteria are met:

     * the facility is not subject to a regular repayment schedule and has remained continuously outside contractual or approved arrangements for a period of 90 days or more but less