Download Reporting Requirements and General Instruction guide Quart…

Quarterly Reporting
Instruction Guide
Requirements
and
General
Reporting Entity
Registered superannuation entities that are regulated by APRA, including the following
entities are required to complete the quarterly reporting requirements listed in the
Reporting Requirements Table below where the total assets of the superannuation
entity are equal to or exceed $50m:
Ø
Ø
Ø
Ø
Ø
Public Offer Superannuation Funds;
Other APRA regulated superannuation entities;
Multi-Member Approved Deposit Funds;
Pooled Superannuation Trusts; and
Eligible Rollover Funds.
Exclude
Ø Small APRA Funds (SAFs).
Ø Single-member Approved Deposit Funds.
Reporting Requirements Table
Form Number
Form Name
SRF 100.0
Statement of Financial Performance
SRF 110.0
Statement of Financial Position
SRF 110.1
Selected Disclosure of Directly Held Investments (Version A)
SRF 110.1
Selected Disclosure of Directly Held Investments (Version B)
SRF 110.2
Derivative Financial Instruments
SRF 120.0
Exposure Concentrations
SRF 110.1 Selected Disclosure of Directly Held Investments (Version A) and
(Version B)
A superannuation entity with total assets equal to or greater than $50m is only required
to complete one version of this form. The version of this form that will be appropriate for
a superannuation entity will depend on whether a superannuation entity has total assets
that qualify it to be considered within the largest 200 superannuation entities in the
industry.
Where a superannuation entity has total assets that qualify it to be considered within the
largest 200 superannuation entities in the industry, it is required to complete version B
of this form. The ABS has indicated that it only requires these entities to be subject to
the specific reporting requirements that are contained in this schedule.
Version A of this form is only to be completed by a superannuation entity where the total
assets of the superannuation entity are equal to or greater than $50m but the
superannuation entity is not considered to be within the largest 200 entities in the
industry, in terms of total asset size. Version A of this form only includes the specific
reporting requirements of the APRA.
The ABS will advise those funds that are within this grouping and a reporting package
will be customized for superannuation entities (in the development and roll out stages of
the D2A reporting forms) so that the correct version is automatically applied to the
superannuation entity.
Application of the threshold for quarterly reporting
The application of quarterly reporti ng is to be determined by superannuation entities at
the start of the financial year. A determination at the start of the financial year regarding
the application of the quarterly reporting requirements to the superannuation entity is
effective for the entire financial year regardless of subsequent increases and decreases
in asset size of the superannuation entity during that financial year (e.g. where the total
assets of the superannuation entity subsequently decrease below the $50m in total
assets thresho ld).
Application Date
The above proposed reporting requirements are applicable for quarterly reporting
periods commencing on and after 1 July 2004. In practice this will mean that the first
quarterly forms required to be lodged will be the quarterly reporting period ending 30
September 2004.
Audit Requirements
Quarterly reporting requirements are not subject to audit.
Reporting Period
Quarterly reporting periods are based on the financial year of the superannuation entity
not a calendar year basis. The financial information requested in these form is to be
reported as at the last day of the reporting period on a financial year to date basis of the
superannuation entity.
Lodgement Requirements
Forms required on a quarterly basis are to be lodged within 25 business days after the
end of the reporting quarter. The lodgement deadline is predominantly a requirement of
the Australian Bureau of Statistics for the purposes of collating and preparing the
national aggregates and statistics.
4 sets of quarte rly returns are required.
Basis of preparation
In completing these forms unless otherwise specifically stated in the instruction guide for
each form:
Ø The forms are to be prepared based on the total transactions of the superannuation
entity regardless of the residency status of members or the location or registration of
the asset or liability items;
Ø A look through requirement is not imposed in terms of reporting the underlying
investments of external managed mandates of investment managers. These
investments are to be reported as investments in managed funds;
Ø Do not include a consolidation of any controlled entities;
Ø Superannuation entities are to follow the Australian accounting standards and other
mandatory reporting requirements and other statutory requirements where possible,
regarding the interpretation, recognition and measurement of items of income,
expense, assets and liabilities, notably AAS 25 “Financial Reporting of
Superannuation Plans”.
AAS 25 requires a superannuation entity to adopt net market value measurement where
the superannuation entity is deemed to be a reporting entity. For the purposes of
prudential reporting all superannuation entities are to adopt net market value
measurement irrespective of their deemed reporting entity status.
Net market value has the same meaning as defined in the Australian accounting
standard / AAS 25. A definition is provided in the ‘Glossary of Terms’. Any change in the
values at which such assets are measured must be recognised as revenues (or losses)
in the reporting period in which the change occurs.
Accounting Standards AASB 1021 "Depreciation of Non-Current Assets" and AASB
1010 "Accounting for the Revaluation of Non-Current Assets" do not apply to such
investments.
Market value of charged / encumbered assets
If an asset is in any way subject to a charge, covenant, encumbrance, option to
purchase or any other arrangement by way of agreement or statute, that restricts the net
market value of the asset, the market value needs to reflect the existence of these
arrangements. For example, if the superannuation entity has agreed to deliver an asset
to a purchaser at a price below the arms length market value, the market value cannot
exceed the agreed price.
Unit of measurement
The above forms are to be prepared in thousands of Australian dollars (AUD) with no
decimal place. As a general rule, amounts denominated in foreign currency are to be
converted to AUD in accordance with the requirements of the Australian accounting
standards, notably AASB 1012: Foreign Currency Translation.
The general requirements of AASB 1012 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. Other items outstanding at the reporting date must not be re-translated subsequent
to initial recognition of the transaction.
Monetary items are defined to mean money held and assets and liabilities that are to
be received or paid in fixed or determinable amounts of money (eg. claim payments,
reinsurance recoveries).
Monetary items arising under foreign currency derivative contracts at the reporting
date must be translated as follows:
Ø Where the exchange rate is fixed in the contract, at that fixed exchange rate; and
Ø Where the exchange rate varies, at the spot rate at the reporting date.
The general requirements of AASB 1012 for accounting treatment of exchange
differences arising on translation are:
1. Exchange differences must be recognised as either revenues or expenses in the
calculation of net profit or loss on the form titled “Investment and Other Operating
Income and Expense”, in the reporting period in which the exchange rates change.
2. Exchange differences that arise in respect of foreign currency monetary items which
are directly attributable to the acquisition, construction or production of an asset that
takes a long period of time to get ready for its intended use or sale, must be
capitalised (net of any effects of a hedge) as part of the cost of that asset.
General definitions
The Glossary Terms contains definitions of commonly used terms in the forms and
instruction guides to the forms listed in the Reporting Requirements Table.
ITEM
Associates
D EFINITION
Associate is defined consistent with the definition provided by Australian
accounting standard AASB 1016 “Accounting for Investments in
Associates”.
Associate
(a)
(b)
(c)
means an investee, not being:
a subsidiary of the investor; or
a partnership of the investor; or
an investment acquired and held exclusively with a view to its
disposal in the near future.
.
Over which the investor has significant influence
Significant influence means the capacity of an entity to affect substantially
(but not control) either, or both, of the financial and operating policies of
another entity.
Controlled entity /
Subsidiary
Definitions of controlled entities / subsidiaries should be consistent with
the requirements of Australian accounting standards AASB 1024
‘Consolidated Accounts’.
AASB 1024 ‘Consolidated Accounts’ defines a controlled entity /
“subsidiary" as meaning an entity, which is controlled by a parent entity. A
parent entity is defined as an entity, which controls another entity.
"Entity" means any legal, administrative, or fiduciary arrangement,
organisational structure or other party (including a person) having the
capacity to deploy scarce resources in order to achieve objectives.
“Control" means the capacity of an entity to dominate decision-making,
directly or indirectly, in relation to the financial and operating policies of
another entity so as to enable that other entity to operate with it in
pursuing the objectives of the controlling entity.
Assets
Assets is to be interpreted in accordance with the Australian accounting
standards and authoritative pronouncements and Statement of accounting
concepts.
Liabilities
Liabilities is to be interpreted in accordance with the Australian accounting
standards and authoritative pronouncements and Statement of accounting
concepts.
Fair Value
Market value is defined for accounting purposes as a subset of fair value,
where fair value means the amount for which an asset could be
exchanged, or a liability settled, between knowledgeable, willing parties in
an arm's-length transaction, and is determined as follows:
1. The quoted market price in an active and liquid market (ie market
value); or
2. when there is infrequent activity in a market, the market is not well
established, small volumes are traded relative to the asset or liability
to be valued, or a quoted market price is not available – an estimate of
a price for the asset or liability in an active and liquid market.
For the purposes of the APRA forms, fair value should ignore transaction
costs.
Goodwill
AASB 1013 “Accounting for Goodwill” provides that goodwill represents
the future benefits from unidentifiable assets. Only goodwill which is
purchased by the entity as part of the acquisition of an asset(s) can be
recognised (ie internally generated goodwill must not be recognised).
Goodwill which is purchased by the entity, must be measured as the
excess of the cost of acquisition incurred by the entity over the fair value
of the identifiable net assets acquired.
Purchased goodwill must be amortised so that it is recognised as an
expense in the profit and loss account on a straight -line basis, over the
period from the date of acquisition to the end of the period of time during
which the benefits are expected to arise. This period must not exceed
twenty years from the date of acquisition.
Impairment
For the purposes of the APRA form, impairment means that there exists
reasonable doubt that amounts of principal (or market value) and any
associated amounts of accrued income (eg interest, dividends,
distributions associated with the investment / asset) will be able to be
collected by the Insurer.
Investment
Is to be interpreted in accordance with the Australian accounting
standards and authoritative pronouncements and Statement of accounting
concepts.
In relation to superannuation funds, this generally means an asset held by
the Fund for the accretion of wealth by way of revenues such as interest,
royalties, dividends, rentals and capital appreciation, but does not include
operating assets.
Joint ventures
Defined in accordance with AASB 1006: “Accounting for Interests in Joint
Ventures”. Joint venture means a contractual arrangement whereby two or
more parties undertake an economic activity, which is subject to joint
control. Joint ventures can take the form of a joint venture entity or joint
venture operation.
Joint venture entity means a joint venture that is in the form of an entity
and does not include:
(a)
an entity that is acquired and held exclusively with a view
to its disposal in the near future
(b)
an entity that operates under severe long-term restrictions
which impair significantly its ability to make distributions to
the venturer.
Joint venture operation means a joint venture that is not a joint venture
entity and does not include an entity that:
(a)
is acquired and held exclusively with a view to its disposal
in the near future
(b)
operates under severe long-term restrictions that impair
significantly its ability to make distributions to the venturer.
Market value
Market value is defined for accounting purposes as a subset of fair value,
where fair value means the amount for which an asset could be
exchanged, or a liability settled, between knowledgeable, willing parties in
an arm's-length transaction, and is determined as follows:
1. the quoted market price in an active and liquid market (ie market
value); or
2. when there is infrequent activity in a market, the market is not well
established, small volumes are traded relative to the asset or liability
to be valued, or a quoted market price is not available – an estimate of
a price for the asset or liability in an active and liquid market.
For the purposes of the forms, market value should ignore transaction
costs.
Off balance sheet exposure
Refers to items of assets or liabilities that are not recognised or recorded
on the statement of financial position eg contingent liabilities.
On balance sheet exposure
Refers to items of assets or liabilities that are recognised or recorded on
the statement of financial position.
Outside equity interest
Defined consistent with AASB 1024 “Consolidated Accounts”, outside
equity interest" means the equity in the economic entity (consolidated
group), other than that which can be attributed to the ownership group of
the parent entity.
Parent entity
Parent entity is defined consistent with AASB 1024 “Consolidated
Accounts” and simply means an entity which controls another entity.
Principal Value
Represents the notional or face value.
Related parties / entities
For the purposes of this form, related bodies corporate are to be
interpreted consistently with the meaning as in AASB 1017. AASB 1017
provides that related party means, in relation to a reporting entity any:
(a)
other entity that at any time during the financial year, has control or
significant influence over the reporting entity; or
(b)
other entity that at any time during the financial year, is subject to
control or significant influence by the reporting entity (ie subsidiary
or an associated entity); or
(c)
other entity that, at any time during the financial year, is controlled
by the same entity that controls the reporting entity. Referred to as
a situation in which entities are subject to common control (ie Joint
Ventures); or
(d)
other entity that, at any time during the financial year, is controlled
by the same entity that significantly influences the reporting entity;
or
(e)
other entity that, at any time during the financial year, is
significantly influenced by the same entity that controls the
reporting entity; or
(f)
director of the reporting entity or any of their director-related
entities; or
(g)
director of any other entity identified as a related party under any of
paragraphs (a) to (e), or any of their director-related entities;
but excludes any other entity (except those identified as a related party
under paragraph (f)) where the related party relationship results solely
from normal dealings of:
(h)
financial institutions; or
(i)
authorised trustee corporations; or
(j)
fund managers; or
(k)
trade unions; or
(l)
statutory authorities; or
(m)
government departments; or
1
(n)
local governments
AASB 1017 defines director-related entities as meaning “the spouses of
such directors, relatives of such directors or spouses and any other entity
under the joint or several control or significant influence of such directors,
spouses or relatives”.
Relative in relation to a person is defined in the Corporations Law to mean
the spouse, partner, son, daughter, or brother or sister of the person.
Reporting Period
In relation to APRA forms:
Ø Reporting period end for all APRA forms (ie annual and quarterly
reporting) is based on the financial year of the Fund, not a calendar
year.
Ø The financial information requested in the forms are to be reported as
at the last day of the reporting period on a financial year to date basis
of the Fund.