Document ID: chunk:federal_register_of_legislation:F2018L00380:body:0:p8
Version: federal_register_of_legislation:F2018L00380
Segment Type: other
Provision Reference: 
Character Range: 19586–22599

recovered – Used in isolated circumstances when a doubtful receivable is reinstated
1.8        Foreign currency translation adjustments – Foreign currency movements
1.9        Closing balance – Closing balance of provision
Provisions assessed on a collective basis (i.e. "Collective provisions") with IFRS may be split into two categories for regulatory purposes. These two categories are:

     * specific provision; and/or

     * General Reserve for Credit Losses.

Refer to APS 220 for guidance on the determination of this split.
2.             Specific provision on an individual basis
Report the movements on the IFRS specific provision assessed on an individual basis. Refer to APS 220.
2.1        Opening balance – Opening balance of provision
2.2        Provisions created  - Movement in provision as a result of business combinations during the year
2.3        Charge for doubtful debts (P & L)
2.3.1 New funding - New increases in provision during the year
2.3.2 Write-back of provision not required – Reversal and decrease of provision to P&L during the year
2.4        Transfer to collective provision – Increase in collective provision
2.5        Transfer from collective provision – Decrease in collective provision
2.6        Bad debts written-off – Decrease in provision and write-off of receivable
2.7        Bad debts recovered – Used in isolated circumstances when a doubtful receivable is reinstated
2.8        Foreign currency translation adjustments – Foreign currency movements
2.9        Closing balance – Closing balance of provision
Report the closing balance of the portion of the IFRS collective provision that is treated as a specific provision for regulatory purposes.
3.             General Reserve for Credit Losses
Report the movements on the regulatory General Reserve for Credit Losses.

Irrespective of the approach used by an ADI in determining specific and collective provisions, APRA expects ADIs to formulate appropriate policies and procedures for the assessment and reporting of adequate levels of General Reserve for Credit Losses. Unless otherwise agreed in writing with APRA, an ADI is expected to report General Reserve for Credit Losses. (refer to APS 220)
Some entities may report a portion of this General Reserve for Credit Losses in the financial statements as part of Shareholder's equity. This portion must also be reported in the "General Reserve for Credit Losses" section of the return.

    [1]  The definitions of 'credit union' and 'other ADI' in paragraph 17 of this Reporting Standard provide that Cairns Penny Savings & Loans Limited is to be treated in accordance with the reporting period requirements applicable to credit unions for the purposes of paragraph 10.
    [2]  Securitisation exposures are defined in accordance with APS 120.
    [3]  Monetary items are defined to mean units of currency held and assets and liabilities to be received or paid in a fixed or determinable number of units of currency.  Spot rate means the exchange