Download RRF 320.2: Equity Securities Held Instruction Guide

RRF 320.2: Equity Securities Held
Instruction Guide
GENERAL DIRECTIONS AND NOTES
Reporting Entity
The Equity Securities Held form is to be completed by all registered financial
corporations that have total assets equal to or greater than $500 million, after
consolidating all registered financial corporations of the same category in a group of
related bodies corporate (e.g. two or more money market corporations in the same
group) on a Domestic Books basis.
The Domestic books of the registered entity relates to the Australian books of the
Australian entity and has the following scope:
¾ This form should be completed on a consolidated basis for all legal entities in
your Australian enterprise group that are required to file this return.
¾ Do not consolidate Australian and offshore controlled entities or associated
entities that are not required to complete this form.
¾ Exclude offshore branches of the Australian registered entity from this reporting
unit.
¾ Report your Australian consolidated entity’s operations / transactions that are
booked inside Australia.
¾ Include transactions with non-residents recorded on Australian books.
Reporting Period
The form is to be completed as at the last business day of the stated quarter (i.e.
March, June, September and December). All registered financial corporations that
have total assets equal to or greater than $500 million should submit the completed
form to APRA within 20 business days of the end of the quarter.
Unit of Measurement
All registered financial corporations that have total assets equal to or greater than
$500 million are asked to complete the form in thousands of Australian dollars
rounded to the nearest whole number (no decimal place).
Timing
Report assets and liabilities, and transactions in assets and liabilities as at the date
of change of ownership.
Netting
Unless otherwise specifically stated, institutions are to comply with the prerequisite
for netting outlined in Australian accounting standards AASB 1014: Set-off and
Extinguishment of Debt and AASB 1033: Presentation and Disclosure of Financial
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Instruments.
Term to Maturity
References to term to maturity in this form are references to original term to
maturity.
Valuation and currency conversion
Closing balances should be reported at market price effective at the reference date.
Where denominated in foreign currency stock market values in foreign currency
should be converted to AUD at the spot rate effective as at the reference date.
For holdings of shares in unlisted companies, if a market price is not available as at
the reference date, estimate the market price of your shares by using one of the
following methods:
•
A recent transaction price;
•
Director's valuation; or
•
Net asset value (net asset value is equal to total assets, including intangibles,
less non-equity liabilities and less the paid up value of non-voting shares.
Assets and liabilities should be recorded at estimated market value, rather
than historical values).
Net purchases is the net result of dealing in the securities, i.e. purchases less sales.
Transactions should be reported at market prices in AUD, converted at the
appropriate spot rate at the time of the transaction, without the addition or
subtraction of transaction costs such as brokerage.
Basis of Preparation
Unless otherwise specifically stated, institutions are to comply with Australian
accounting standards regarding the measurement of asset, liability and equity items.
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SPECIFIC INSTRUCTIONS
Refer to the sector definitions in the RRF 320.0 instructions as a general guide for
reporting by sector. Equity investments in the parent entity, controlled entities,
associates or joint ventures should be reported to the sector classification of this
related entity.
Shares and units listed on ASX and issued by residents
Report all trading and investment securities listed on the Australian Stock Exchange
at market value. Report the net transactions during the quarter by sector of issuer
(excluding transactions via repurchase/stock lending agreements).
Include:
• Ordinary shares;
• Units in trusts;
• Preference shares;
• Strategic investment in the equity securities of entities that are deemed to be
controlled entities, associates or joint ventures and are listed on the ASX;
• Securities (stock) lent or sold under repurchase agreements (these amounts
should be reported in RRF 320.5: Securities subject to repurchase and resale
and Stock lending and borrowing).
• Short sold positions as a negative asset against the appropriate equity security
item.
Exclude:
• Convertible notes prior to conversion;
• Equity in non-resident companies listed on the ASX, include this asset as
unlisted equity;
• Securities borrowed or purchased under resale agreements (these amounts
should be reported in RRF 320.5: Securities subject to repurchase and resale
and Stock lending and borrowing).
Shares and units not listed on ASX
Report all trading and investment equity securities at market value (or fair valuation).
Report the net transactions during the quarter by sector of issuer (excluding
transactions via repurchase/stock lending agreements).
Include:
• Ordinary shares;
• Units in trusts;
• Preference shares;
• Equity in non-resident companies listed on the ASX;
• Equity in non-resident companies listed on overseas stock exchanges;
• Equity in unlisted companies, domestic and overseas;
• Strategic investment in the equity securities of entities that are deemed to be
controlled entities, associates or joint ventures and are not listed on the ASX;
• Securities lent or sold under repurchase agreements (these amounts should be
reported in RRF 320.5: Securities subject to repurchase and resale and Stock
lending and borrowing).
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Exclude:
• Convertible notes prior to conversion;
• Securities borrowed or purchased under resale agreements (these amounts
should be reported in RRF 320.5: Securities subject to repurchase and resale
and Stock lending and borrowing).
Reconciliation with RRF 320.0
Total equity securities held (market value)
The sum of:
• Total listed equities (RRF 320.2)
• Total unlisted equities (RRF 320.2)
• Shares and units issued by non-residents (RRF 320.2)
Equals
The sum of:
• Foreign Assets - Equity (RRF 320.0) adjusted from book value to market
value
• Trading securities - Equity Securities (RRF 320.0)
• Investment securities - Equity Securities (RRF 320.0) adjusted from carrying
value to market value
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