Document ID: chunk:federal_register_of_legislation:F2019L00830:body:0:p14
Version: federal_register_of_legislation:F2019L00830
Segment Type: other
Provision Reference: 
Character Range: 37453–40394

3.10 Total securities not held for trading
Sum all 'Securities not held for trading' reporting items.
4. Other deposits
Include:
     * deposits that are not invested on a call or short term basis i.e. term deposits that are not on a call/demand basis. Disclose total deposits invested with the following counterparty classifications.
4.1 ADIs
4.2 Other
4.3 Total other deposits
5. Acceptances of customers
Total acceptances of customers – Net
Acceptances comprise undertakings by an ADI to pay bills of exchange drawn on customers. These bills of exchange are not held as part of the ADI's asset portfolio. Acceptances are accounted for and disclosed as a liability with a corresponding contra asset. The contra asset is recognised to reflect the ADI's claim against each drawer of the bills of exchange.
Bills of exchange that have been accepted and held in an ADI's asset portfolio should be excluded from this item. Include these holdings of own acceptances under either Securities held for trading or Securities not held for trading.
Netting is allowed in accordance with the requirements specified in the Australian Accounting Standards (i.e. only if there is a legal right to set off and there is an intention to settle on a net basis, or realise the assets and settle the liability simultaneously).
Acceptances generate fee income that is taken to profit and loss when earned.
6. Loans and advances
Loans and advances are investments of the ADI and generally include:
     * overdrafts;
     * secured and unsecured lending;
     * financial lease agreements;
     * account balances which do not qualify as deposits;
     * credit card outstanding balances;
     * term loans;
     * mortgage lending;
     * commercial loans;
     * equity participation in leveraged leases;
     * redeemable preference share finance;
     * subordinated loans; and
     * loans to controlled entities, associates and joint ventures.
Loans and advances are recognised at amortised cost, after assessing required provisions.
Loans and advances should be recorded net of unearned revenue; this is mainly with respect to unearned lease receivables.
Netting is permitted in accordance with the requirements of the Australian accounting standards (i.e. where there is a legal right to set off the recognised amounts and there is an intention to settle on a net basis, or realise the assets and settle the liability simultaneously).
Loan loss provisioning
Provisions assessed on an individual facility basis in accordance with the Australian equivalents to International Financial Reporting Standards (IFRS)[3] are to be treated as specific provisions in the reporting forms for regulatory reporting purposes (Prudential Standard APS 220 Credit Quality (APS 220)). Specific provisions also include that portion of provisions assessed on a collective basis that are not eligible for regulatory purposes to be included in General Reserve for Credit Losses