Document ID: chunk:federal_register_of_legislation:F2022L00227:body:0:p7
Version: federal_register_of_legislation:F2022L00227
Segment Type: other
Provision Reference: 
Character Range: 18239–21274

securities entities and other financial entities (e.g. finance companies, money market corporations, stockbrokers and leasing companies.

    2.             Exclude subsidiary entities involved in the following business activities:

     * insurance businesses (including friendly societies and health funds);

     * acting as manager, responsible entity, approved trustee, trustee or similar role in relation to funds management or the securitisation of assets;

     * non-financial (commercial) operations; and

     * SPVs that meet APRA's operational requirements for regulatory capital relief under APS 120.

Reporting period

The form is to be completed as at the last day of the relevant reporting period. All ADIs should submit the completed form to APRA within 35 calendar days after the end of the relevant reporting period.

Unit of measurement

Australian-owned banks, foreign subsidiary banks and branches of foreign banks are asked to complete the form in millions of Australian dollars rounded to one decimal place. Other ADIs, Building Societies, Credit Unions and Cairns Penny Savings & Loans Limited are asked to complete the form in whole Australian dollars (no decimal place).

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).

The general requirements of AASB 121 for translation are:

     1. foreign currency monetary items outstanding at the reporting date must be translated at the spot rate at the reporting date;[2]

     2. foreign currency non-monetary items that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction;[3]

     3. foreign currency non-monetary items that are measured at fair value will be translated at the exchange rate at the date when fair value was determined.

    Transactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 139 Financial Instruments: Recognition and Measurement (AASB 139). However, those foreign currency derivatives that are not within the scope of AASB 139 (e.g. some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121.

    For APRA purposes equity items must be translated using the foreign currency exchange rate at the date of investment or acquisition.  Post acquisition changes in equity are required to be translated on the date of the movement.

    As foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.

    Exchange differences should be recognised in profit and loss in the period which they arise. For foreign currency derivatives, the exchange differences would be recognised immediately in profit and loss if the hedging instrument is a fair value hedge. For derivatives used in a cash flow hedge, the exchange differences should be