Document ID: chunk:federal_register_of_legislation:F2017L01022:body:0:p6
Version: federal_register_of_legislation:F2017L01022
Segment Type: other
Provision Reference: 
Character Range: 14827–17805

items for Australian-owned banks on the greater of Level 1 or Level 2 basis.

Australian-owned banks complete ARF 731.1, ARF 731.3A and ARF 731.4.

Foreign subsidiary banks and branches of foreign banks complete ARF 731.1 and ARF 731.3B.

Reporting level

ARF 731.1 is to be completed by all banks on a domestic books basis.

Domestic books means an unconsolidated report of positions, 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)).

Data are to be supplied on the positions on the Australian books of the Australian reporting entity, including claims and liabilities in all currencies including AUD vis-à-vis residents of Australia.

Reporting basis and unit of measurement

The return should be completed as at the last day of the stated quarter (i.e. March, June, September and December).

All 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 731.1 in accordance with Australian Accounting Standards unless otherwise specified.

Netting of assets and liabilities

Assets and liabilities should in principle be reported on a gross basis in the locational statistics. Assets and liabilities vis-à-vis the same counterparty should be reported separately, not netted one against the other. An exception exists for some cases of derivative contracts.

Reporting of net positions is allowed only if Australian accounting standards allow netting of multiple matching swaps (by currency and maturity) with the same counterparty that are covered under a legally enforceable netting agreement. Financial derivatives other than swaps should be reported at gross market value, with positive market value as claims and negative market value as liabilities.

Standard Business Reporting (SBR)
The accounting type (i.e. credit or debit) is stated for all monetary items and represents the natural accounting type of the item collected.

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