Document ID: chunk:federal_register_of_legislation:F2024L01128:body:0:p6
Version: federal_register_of_legislation:F2024L01128
Segment Type: other
Provision Reference: 
Character Range: 15204–18712

18 of this Reporting Standard, or the Definitions in this Instruction Guide.

General directions and notes

Reporting entity

This form is to be completed by all ADIs on both a Level 1 and Level 2 basis (where applicable).

Securitisation deconsolidation principle

Except as otherwise specified in these instructions, the following applies:

     1.              Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that meets APRA's operational requirements for regulatory capital relief under Prudential Standard APS 120 Securitisation (APS 120):

        1.           special purpose vehicles (SPVs) holding securitised assets may be treated as non-consolidated independent third parties for regulatory reporting purposes, irrespective of whether the SPVs (or their assets) are consolidated for accounting purposes; and

        2.           the assets, liabilities, revenues and expenses of the relevant SPVs may be excluded from the ADI's reported amounts in APRA's regulatory reporting returns.

     1.              Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that does not meet APRA's operational requirements for regulatory capital relief under APS 120, or the ADI undertakes a funding-only securitisation or synthetic securitisation, such assets are to be reported as on-balance sheet in APRA's regulatory reporting returns.

Unit of measurement
Report monetary amounts on ARF 115.0 in whole Australian dollars (no decimal place).

Amounts denominated in foreign currency are to be converted to AUD in accordance with Australian Accounting Standard AASB 121 The Effects of Changes in Foreign Exchange Rates (AASB 121).

Exclusions

Exclude the following items from ARF 115.0:

     1.           income and expenses from insurance or reinsurance businesses;

     1.           premiums paid and reimbursements/payments received from insurance or reinsurance policies purchased;

     2.           administrative expenses, including staff expenses, outsourcing fees paid for the supply of non-financial services (e.g. logistical, information technology, or human resources services) and other administrative expenses (e.g. expenses related to information technology, utilities, telephone, travel, office supplies, or postage);

     3.           recovery of administrative expenses including recovery of payments on behalf of customers (e.g. taxes debited to customers);

     4.           expenses of premises and fixed assets, except when these expenses result from operational loss events;

     5.            depreciation/amortisation of tangible and intangible assets, except depreciation/amortisation related to lease assets, which should be included in finance and operating lease expenses;

     6.           provisions or reversal of provisions (e.g. on pensions, or commitments and guarantees given), except provisions related to operational loss events;

     7.           expenses due to share capital repayable on demand;

     8.             impairment or reversal of impairment (e.g. on financial assets, non-financial assets, investments in subsidiaries, or joint ventures and associates);

     9.             changes in goodwill recognised in profit or loss; or

    10.           corporate income tax (tax based on profits including current tax and deferred tax).

Definitions
Banking book                                                    Has the meaning given