{"id":"F2010L02332","name":"Financial Sector (Collection of Data) (reporting standard) determination No. 11 of 2010 - GRS 400 (2010) - Supplementary Reporting Information","slug":"financial-sector-collection-of-data-reporting-standard-determination-no-11-of-2010-grs-400-2010-supp","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"repealed","isInForce":false,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":125111,"registerId":"commonwealth-F2010L02332-current","compilationNumber":null,"startDate":"2026-04-03","status":"Repealed","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Reporting Standard GRS 400 (2010) Supple","sectionType":"part","heading":"Reporting Standard GRS 400 (2010) Supplementary Reporting Information comprises the 81 pages commencing on the next page.","content":"## Reporting Standard GRS 400 (2010) Supplementary Reporting Information comprises the 81 pages commencing on the next page.","sortOrder":0},{"sectionNumber":"Reporting Standard GRS 400 (2010)","sectionType":"part","heading":"Reporting Standard GRS 400 (2010)","content":"## Reporting Standard GRS 400 (2010)","sortOrder":1},{"sectionNumber":"Supplementary Reporting Information","sectionType":"part","heading":"Supplementary Reporting Information","content":"# Supplementary Reporting Information\n\n### Objective of this reporting standard\n\nThis reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001 (the Collection of Data Act). It requires general insurers (insurers), including foreign general insurers operating in Australia through branch operations (foreign insurers), to report to APRA, generally on an annual basis:\n\n1.  financial exposure by country or region;\n2.  movements in the provision for claims liabilities;\n3.  the diversification of underwriting business within each State and Territory of Australia;\n4.  claims expense by State and Territory of Australia;\n5.  information associated with the development of claims liabilities; and\n6.  information on controlled entities and joint venture operations/entities.\n\nThis reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with:\n\n-   Form GRF 400.0 Statement of Risk by Country (Form GRF 400.0) and the instructions to that form (which are attached and form part of this reporting standard);\n-   Form GRF 410.0 Movement in Outstanding Claims Provision (Form GRF 410.0) and the instructions to that form (which are attached and form part of this reporting standard);\n-   Form GRF 420.0 Premium Revenue by State and Territory of Australia (Form GRF 420.0) and the instructions to that form (which are attached and form part of this reporting standard);\n-   Form GRF 430.0 Claims Expense by State and Territory of Australia (Form GRF 430.0) and the instructions to that form (which are attached and form part of this reporting standard);\n-   Form GRF 440.0 Claims Development Tables (Form GRF 440.0) and the instructions to that form (which are attached and form part of this reporting standard); and\n-   Form GRF 450.0 Interest in Controlled Entities and Joint Ventures (Form GRF 450.0) and the instructions to that form (which are attached and form part of this reporting standard).\n\n# Purpose\n\n1.  Data collected in Forms GRF 400.0, GRF 410.0, GRF 420.0, GRF 430.0 GRF 440.0 and GRF 450.0 is used by APRA for the purpose of prudential supervision of insurers.\n\n# Application and commencement\n\n2. This reporting standard applies to all insurers for reporting periods ending on or after the date of registration of the reporting standard on the Federal Register of Legislative Instruments.\n\n# Information required\n\n3. An insurer must provide APRA with the information required by Forms GRF 400.0, GRF 410.0, GRF 420.0, GRF 430.0, GRF 440.0 and GRF 450.0 for each reporting period.\n\n# Forms and method of submission\n\n4. The information required by this reporting standard must be given to APRA either:\n\n(a) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or\n\n(b) by manually completing Forms GRF 400.0, GRF 410.0, GRF 420.0, GRF 430.0, GRF 440.0 and GRF 450.0 on paper and mailing the completed forms to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales.\n\nWhere the information is submitted by means of an agent to whom the insurer has outsourced the function of providing the information on the insurer’s behalf, the agent may only provide the information in accordance with subparagraph 4(b) if the agent has contacted APRA and advised that the agent cannot submit the information in electronic form under subparagraph 4(a).\n\nNote: the Direct to APRA application software and paper forms may be obtained from APRA.\n\nReporting periods and due dates\n\n5. Subject to paragraph 6, an insurer must provide the information required by this reporting standard in respect of each financial year (within the meaning of the Corporations Act 2001) of the insurer.\n\nNote: APRA proposes to determine exemptions, under section 7 of the Insurance Act 1973 (Insurance Act), from the obligations under Part IV Division 4 of the Insurance Act in respect of the auditing of information provided under this reporting standard.\n\n6. APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular insurer to require it to provide the information:\n\n(a) more frequently (if, having regard to the particular circumstances of the insurer, APRA considers it necessary or desirable to obtain information more frequently for the purposes of the prudential supervision of the insurer); or\n\n(b) less frequently (if, having regard to the particular circumstances of the insurer and the extent to which it requires prudential supervision, APRA considers it unnecessary to require the insurer to provide the information as frequently as provided by paragraph 5).\n\n7. The information required by paragraph 3 of this reporting standard must be provided to APRA within 4 months after the end of the reporting period to which the information relates.\n\n8. APRA may grant an insurer an extension of a due date in writing, in which case the new due date for the provision of the information will be the date specified in the notice of extension.\n\n# Authorisation\n\n9. The information provided by an insurer under this reporting standard must be subject to processes and controls developed by the insurer for the internal review and authorisation of that information. It is the responsibility of the board and senior management of the insurer to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.\n\n10. If the officer of an insurer provides the information required by this reporting standard:\n\n(a) under subparagraph 4(a), the officer must digitally sign, authorise and encrypt the information (for which purpose APRA’s certificate authority will issue digital certificates, for use with the ‘Direct to APRA’ application, to officers of the insurer who have authority from the insurer to transmit data to APRA); or\n\n(b) under subparagraph 4(b), the completed form must be signed in accordance with paragraph 12.\n\n11. If an insurer provides the information required by this reporting standard through an agent under either subparagraphs 4(a) or (b), the agent will not be required to sign or authorise the information. However, the insurer must:\n\n(a) obtain from the agent paper copies of the completed forms as provided to APRA (under either subparagraph 4(a) or (b)); and\n\n(b) cause the paper copies to be signed in accordance with paragraph 12; and\n\n(c) lodge the signed paper copies with APRA by mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales, by the relevant due date (unless APRA, in writing, waives the requirement in relation to the insurer to lodge the signed paper copies with APRA).\n\nNote: APRA may, for example, decide to waive the requirement under subparagraph 11(c) where an insurer has undertaken to retain the signed copies of the completed form for an agreed period of time.\n\n12. If information under this reporting standard is provided in paper form, it must be signed on the front page of the relevant completed forms by either:\n\n(a) the Principal Executive Officer of the insurer; or\n\n(b) the Chief Financial Officer of the insurer (whatever his or her official title may be).\n\n# Minor alterations to forms and instructions\n\n13. APRA may make minor variations to the instructions to a form, to clarify their application to the form provided it does not involve changing any substantive requirement in the form or instructions.\n\n> 14. If APRA makes such a variation it must notify insurers of this in writing.\n\n> Transition\n\n> 15. An insurer must report in relation to a reporting period ending prior to 1 July 2010 in accordance with the reporting standards that this reporting standard replaced.\n\nInterpretation\n\n16. In this reporting standard:\n\nappointed auditor means an auditor appointed under paragraph 39(1)(a) of the Insurance Act;\n\ncapital standards means the prudential standards which relate to capital adequacy as defined in Prudential Standard GPS 001 Definitions;\n\nforeign insurer means a foreign general insurer within the meaning of the Insurance Act;\n\nNote: A reference to a ‘branch’ or ‘branch operation’ is a reference to the Australian operations of a foreign insurer.\n\nInsurance Act means the Insurance Act 1973;\n\ninsurer means a general insurer within the meaning of the Insurance Act;\n\nNote: In the forms and instructions, a reference to an ‘authorised insurer’, ‘authorised insurance entity’ or ‘licensed insurer’ is a reference to an insurer, and a reference to an ‘authorised reinsurance entity’ is a reference to an insurer whose business consists only of undertaking liability by way of reinsurance.\n\nPrincipal Executive Officer means the principal executive officer of the insurer for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the insurer;\n\nreporting period means a period mentioned in paragraph 5 or, if applicable, paragraph 6.\n\n17. A reference to a prudential standard means the prudential standard, made under section 32 of the Insurance Act, mentioned in the reference, as amended from time to time. If the prudential standard has been revoked and replaced, the reference shall be taken to be to the prudential standard that has replaced it.","sortOrder":2},{"sectionNumber":"Objective of this reporting standard","sectionType":"division","heading":"Objective of this reporting standard","content":"### Objective of this reporting standard\n\nThis reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001 (the Collection of Data Act). It requires general insurers (insurers), including foreign general insurers operating in Australia through branch operations (foreign insurers), to report to APRA, generally on an annual basis:\n\n1.  financial exposure by country or region;\n2.  movements in the provision for claims liabilities;\n3.  the diversification of underwriting business within each State and Territory of Australia;\n4.  claims expense by State and Territory of Australia;\n5.  information associated with the development of claims liabilities; and\n6.  information on controlled entities and joint venture operations/entities.\n\nThis reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with:\n\n-   Form GRF 400.0 Statement of Risk by Country (Form GRF 400.0) and the instructions to that form (which are attached and form part of this reporting standard);\n-   Form GRF 410.0 Movement in Outstanding Claims Provision (Form GRF 410.0) and the instructions to that form (which are attached and form part of this reporting standard);\n-   Form GRF 420.0 Premium Revenue by State and Territory of Australia (Form GRF 420.0) and the instructions to that form (which are attached and form part of this reporting standard);\n-   Form GRF 430.0 Claims Expense by State and Territory of Australia (Form GRF 430.0) and the instructions to that form (which are attached and form part of this reporting standard);\n-   Form GRF 440.0 Claims Development Tables (Form GRF 440.0) and the instructions to that form (which are attached and form part of this reporting standard); and\n-   Form GRF 450.0 Interest in Controlled Entities and Joint Ventures (Form GRF 450.0) and the instructions to that form (which are attached and form part of this reporting standard).","sortOrder":3},{"sectionNumber":"Purpose","sectionType":"part","heading":"Purpose","content":"# Purpose\n\n1.  Data collected in Forms GRF 400.0, GRF 410.0, GRF 420.0, GRF 430.0 GRF 440.0 and GRF 450.0 is used by APRA for the purpose of prudential supervision of insurers.","sortOrder":4},{"sectionNumber":"Application and commencement","sectionType":"part","heading":"Application and commencement","content":"# Application and commencement\n\n2. This reporting standard applies to all insurers for reporting periods ending on or after the date of registration of the reporting standard on the Federal Register of Legislative Instruments.","sortOrder":5},{"sectionNumber":"Information required","sectionType":"part","heading":"Information required","content":"# Information required\n\n3. An insurer must provide APRA with the information required by Forms GRF 400.0, GRF 410.0, GRF 420.0, GRF 430.0, GRF 440.0 and GRF 450.0 for each reporting period.","sortOrder":6},{"sectionNumber":"Forms and method of submission","sectionType":"part","heading":"Forms and method of submission","content":"# Forms and method of submission\n\n4. The information required by this reporting standard must be given to APRA either:\n\n(a) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or\n\n(b) by manually completing Forms GRF 400.0, GRF 410.0, GRF 420.0, GRF 430.0, GRF 440.0 and GRF 450.0 on paper and mailing the completed forms to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales.\n\nWhere the information is submitted by means of an agent to whom the insurer has outsourced the function of providing the information on the insurer’s behalf, the agent may only provide the information in accordance with subparagraph 4(b) if the agent has contacted APRA and advised that the agent cannot submit the information in electronic form under subparagraph 4(a).\n\nNote: the Direct to APRA application software and paper forms may be obtained from APRA.\n\nReporting periods and due dates\n\n5. Subject to paragraph 6, an insurer must provide the information required by this reporting standard in respect of each financial year (within the meaning of the Corporations Act 2001) of the insurer.\n\nNote: APRA proposes to determine exemptions, under section 7 of the Insurance Act 1973 (Insurance Act), from the obligations under Part IV Division 4 of the Insurance Act in respect of the auditing of information provided under this reporting standard.\n\n6. APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular insurer to require it to provide the information:\n\n(a) more frequently (if, having regard to the particular circumstances of the insurer, APRA considers it necessary or desirable to obtain information more frequently for the purposes of the prudential supervision of the insurer); or\n\n(b) less frequently (if, having regard to the particular circumstances of the insurer and the extent to which it requires prudential supervision, APRA considers it unnecessary to require the insurer to provide the information as frequently as provided by paragraph 5).\n\n7. The information required by paragraph 3 of this reporting standard must be provided to APRA within 4 months after the end of the reporting period to which the information relates.\n\n8. APRA may grant an insurer an extension of a due date in writing, in which case the new due date for the provision of the information will be the date specified in the notice of extension.","sortOrder":7},{"sectionNumber":"Authorisation","sectionType":"part","heading":"Authorisation","content":"# Authorisation\n\n9. The information provided by an insurer under this reporting standard must be subject to processes and controls developed by the insurer for the internal review and authorisation of that information. It is the responsibility of the board and senior management of the insurer to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.\n\n10. If the officer of an insurer provides the information required by this reporting standard:\n\n(a) under subparagraph 4(a), the officer must digitally sign, authorise and encrypt the information (for which purpose APRA’s certificate authority will issue digital certificates, for use with the ‘Direct to APRA’ application, to officers of the insurer who have authority from the insurer to transmit data to APRA); or\n\n(b) under subparagraph 4(b), the completed form must be signed in accordance with paragraph 12.\n\n11. If an insurer provides the information required by this reporting standard through an agent under either subparagraphs 4(a) or (b), the agent will not be required to sign or authorise the information. However, the insurer must:\n\n(a) obtain from the agent paper copies of the completed forms as provided to APRA (under either subparagraph 4(a) or (b)); and\n\n(b) cause the paper copies to be signed in accordance with paragraph 12; and\n\n(c) lodge the signed paper copies with APRA by mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales, by the relevant due date (unless APRA, in writing, waives the requirement in relation to the insurer to lodge the signed paper copies with APRA).\n\nNote: APRA may, for example, decide to waive the requirement under subparagraph 11(c) where an insurer has undertaken to retain the signed copies of the completed form for an agreed period of time.\n\n12. If information under this reporting standard is provided in paper form, it must be signed on the front page of the relevant completed forms by either:\n\n(a) the Principal Executive Officer of the insurer; or\n\n(b) the Chief Financial Officer of the insurer (whatever his or her official title may be).","sortOrder":8},{"sectionNumber":"Minor alterations to forms and instructi","sectionType":"part","heading":"Minor alterations to forms and instructions","content":"# Minor alterations to forms and instructions\n\n13. APRA may make minor variations to the instructions to a form, to clarify their application to the form provided it does not involve changing any substantive requirement in the form or instructions.\n\n> 14. If APRA makes such a variation it must notify insurers of this in writing.\n\n> Transition\n\n> 15. An insurer must report in relation to a reporting period ending prior to 1 July 2010 in accordance with the reporting standards that this reporting standard replaced.\n\nInterpretation\n\n16. In this reporting standard:\n\nappointed auditor means an auditor appointed under paragraph 39(1)(a) of the Insurance Act;\n\ncapital standards means the prudential standards which relate to capital adequacy as defined in Prudential Standard GPS 001 Definitions;\n\nforeign insurer means a foreign general insurer within the meaning of the Insurance Act;\n\nNote: A reference to a ‘branch’ or ‘branch operation’ is a reference to the Australian operations of a foreign insurer.\n\nInsurance Act means the Insurance Act 1973;\n\ninsurer means a general insurer within the meaning of the Insurance Act;\n\nNote: In the forms and instructions, a reference to an ‘authorised insurer’, ‘authorised insurance entity’ or ‘licensed insurer’ is a reference to an insurer, and a reference to an ‘authorised reinsurance entity’ is a reference to an insurer whose business consists only of undertaking liability by way of reinsurance.\n\nPrincipal Executive Officer means the principal executive officer of the insurer for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the insurer;\n\nreporting period means a period mentioned in paragraph 5 or, if applicable, paragraph 6.\n\n17. A reference to a prudential standard means the prudential standard, made under section 32 of the Insurance Act, mentioned in the reference, as amended from time to time. If the prudential standard has been revoked and replaced, the reference shall be taken to be to the prudential standard that has replaced it.","sortOrder":9},{"sectionNumber":"Reporting Form GRF 400.0","sectionType":"part","heading":"Reporting Form GRF 400.0","content":"## Reporting Form GRF 400.0\n\n## Statement of Risk by Country\n\n# Instruction Guide\n\n### Introduction\n\nGRF 400.0 – Statement of Risk by Country provides selected information of business written by authorised general insurers outside Australia; namely:\n\n-   premium revenue;\n\n-   reinsurance expense;\n-   claims expense;\n-   reinsurance recoveries;\n-   investment income;\n-   unearned premium liability;\n-   outstanding claims liability;\n-   borrowings/loan capital;\n-   deferred reinsurance expense\n-   deferred acquisition costs; and\n-   investments.\n\nThis form only needs to be completed where the insurer has business operations outside of Australia (i.e. where they have items of income, expense, assets, liabilities or capital outside of Australia as defined in this instructions set).\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n1.  Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);\n2.  Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and\n3.  Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nBasis of preparation\n\nIn completing this form, unless otherwise specifically stated, insurers are recommended to adopt the measurement and recognition requirements as required by the prudential reporting framework, as appropriate (i.e. outstanding claims provision and premium liabilities).\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place.\n\nAmounts 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[1\\]](#_ftn1) outstanding at the reporting date must be translated at the spot rate[\\[2\\]](#_ftn2) at the reporting date.\n2.  Foreign currency non-monetary items[\\[3\\]](#_ftn3) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\nReporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 400.0 Statement of Risk by Country.\n\n###   \nSpecific instructions\n\nThe appropriate information is to be reported by country or geographic region specified on the form. This is to be reported according to where the items of income/expense are on risk, assets are invested, and liabilities are located. Enter the relevant details for each country as appropriate.\n\n###### 1. Premium Revenue - Direct & Inwards reinsurance\n\nThis is the premium revenue as required by the APRA forms (refer to instructions GRF 310.1 Premium Revenue and Reinsurance Expense). It is to be reported in respect of total direct business and inwards reinsurance business.\n\nPremium revenue is to be reported in accordance with AASB 1023 ‘General Insurance Contracts’ (AASB 1023) (i.e. earned and unearned components).\n\n###### 2. Reinsurance expense - Direct & Inwards reinsurance\n\nThis is the reinsurance expense as required in form GRF 310.1 Premium Revenue and Reinsurance Expense. It is to be reported in respect of total direct business and inwards reinsurance business.\n\nReinsurance expense is to be reported in accordance with AASB 1023 (i.e. it is to be amortised in accordance with the pattern of reinsurance service received).\n\n###### 3. Claims Expense - Direct & Inwards reinsurance\n\n###### 3.1 Relating to current and prior years\n\nRepresents claims expense in relation to claim payments made in the current year and movements in the outstanding claims provision (i.e. relating to current and prior years) as recognised in GRF 310.0 Statement of Financial Performance.\n\n###### 4. Reinsurance recoveries revenue\n\n###### 4.1 Relating to current and prior years\n\nReport the reinsurance recoveries that relate to claim payments made and movements in the outstanding claims provision as recognised in GRF 310.0 Statement of Financial Performance.\n\n###### 5. Investment Income\n\nInclude investment income as recognised in GRF 310.0 Statement of Financial Performance.\n\n###### 6. Amounts recoverable on reinsurance contracts and outstanding claims\n\nReport the value of amounts recoverable on reinsurance contracts and outstanding claims.\n\n###### 7. Deferred Acquisition Costs\n\nReport deferred acquisition costs as recognised in GRF 300.0 Statement of Financial Position.\n\n###### 8. Deferred Reinsurance Expense\n\nReport deferred reinsurance expense as recognised in GRF 300.0 Statement of Financial Position.\n\n###### 9. Other reinsurance assets\n\nReport the value of all other reinsurance assets (refer to instructions for GRF 301.0 Reinsurance Assets and Risk Charge).\n\n###### 10. Investments\n\nReport the value of the investments. The total amount must reconcile with assets backing insurance liabilities (related to GRF 140 series of forms) reported as current and non-current assets in GRF 300.0 Statement of Financial Position.\n\n###### 11. Other investments\n\nReport investments that do not constitute assets backing insurance liabilities attributable to the respective countries listed. The total amount must reconcile with other investments as reported in GRF 300.0 Statement of Financial Position.\n\n###### 12. All other assets\n\nReport the value of other assets (other than those listed above) attributable to the respective countries listed in the form. The value of ‘All other assets’ must represent the remaining total assets of the reporting insurer.\n\n###### 13. Total assets\n\nRepresent the total assets of the reporting insurer. This must reconcile with the total assets as reported in GRF 300.0 Statement of Financial Position.\n\n###### 14. Unearned Premium Liability\n\nReport unearned premium provision as recognised in item 17 ‘Unearned Premium Liability’ GRF 300.0 Statement of Financial Position.\n\n###### 15. Outstanding Claims Liability\n\nThe amount reported is to be measured in accordance with AASB 1023. The total amount must reconcile with the total amount reported at item 16 ‘Outstanding claims liability’ in GRF 300.0 Statement of Financial Position.\n\n###### 16. Borrowings / loan capital\n\nReport the carrying value of any amount borrowed.\n\n###### 17. Other\n\nReport the value of other liabilities (other than those listed above). The value of ‘Other’ must represent the remaining total liabilities of the reporting insurer.\n\n###### 18. Total Liabilities\n\nRepresent the total liabilities of the reporting insurer. This must reconcile with item 24 ‘Total liabilities’ reported in GRF 300.0 Statement of Financial Position.","sortOrder":10},{"sectionNumber":"Statement of Risk by Country","sectionType":"part","heading":"Statement of Risk by Country","content":"## Reporting Form GRF 400.0\n\n## Statement of Risk by Country\n\n# Instruction Guide\n\n### Introduction\n\nGRF 400.0 – Statement of Risk by Country provides selected information of business written by authorised general insurers outside Australia; namely:\n\n-   premium revenue;\n\n-   reinsurance expense;\n-   claims expense;\n-   reinsurance recoveries;\n-   investment income;\n-   unearned premium liability;\n-   outstanding claims liability;\n-   borrowings/loan capital;\n-   deferred reinsurance expense\n-   deferred acquisition costs; and\n-   investments.\n\nThis form only needs to be completed where the insurer has business operations outside of Australia (i.e. where they have items of income, expense, assets, liabilities or capital outside of Australia as defined in this instructions set).\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n1.  Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);\n2.  Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and\n3.  Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nBasis of preparation\n\nIn completing this form, unless otherwise specifically stated, insurers are recommended to adopt the measurement and recognition requirements as required by the prudential reporting framework, as appropriate (i.e. outstanding claims provision and premium liabilities).\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place.\n\nAmounts 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[1\\]](#_ftn1) outstanding at the reporting date must be translated at the spot rate[\\[2\\]](#_ftn2) at the reporting date.\n2.  Foreign currency non-monetary items[\\[3\\]](#_ftn3) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\nReporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 400.0 Statement of Risk by Country.\n\n###   \nSpecific instructions\n\nThe appropriate information is to be reported by country or geographic region specified on the form. This is to be reported according to where the items of income/expense are on risk, assets are invested, and liabilities are located. Enter the relevant details for each country as appropriate.\n\n###### 1. Premium Revenue - Direct & Inwards reinsurance\n\nThis is the premium revenue as required by the APRA forms (refer to instructions GRF 310.1 Premium Revenue and Reinsurance Expense). It is to be reported in respect of total direct business and inwards reinsurance business.\n\nPremium revenue is to be reported in accordance with AASB 1023 ‘General Insurance Contracts’ (AASB 1023) (i.e. earned and unearned components).\n\n###### 2. Reinsurance expense - Direct & Inwards reinsurance\n\nThis is the reinsurance expense as required in form GRF 310.1 Premium Revenue and Reinsurance Expense. It is to be reported in respect of total direct business and inwards reinsurance business.\n\nReinsurance expense is to be reported in accordance with AASB 1023 (i.e. it is to be amortised in accordance with the pattern of reinsurance service received).\n\n###### 3. Claims Expense - Direct & Inwards reinsurance\n\n###### 3.1 Relating to current and prior years\n\nRepresents claims expense in relation to claim payments made in the current year and movements in the outstanding claims provision (i.e. relating to current and prior years) as recognised in GRF 310.0 Statement of Financial Performance.\n\n###### 4. Reinsurance recoveries revenue\n\n###### 4.1 Relating to current and prior years\n\nReport the reinsurance recoveries that relate to claim payments made and movements in the outstanding claims provision as recognised in GRF 310.0 Statement of Financial Performance.\n\n###### 5. Investment Income\n\nInclude investment income as recognised in GRF 310.0 Statement of Financial Performance.\n\n###### 6. Amounts recoverable on reinsurance contracts and outstanding claims\n\nReport the value of amounts recoverable on reinsurance contracts and outstanding claims.\n\n###### 7. Deferred Acquisition Costs\n\nReport deferred acquisition costs as recognised in GRF 300.0 Statement of Financial Position.\n\n###### 8. Deferred Reinsurance Expense\n\nReport deferred reinsurance expense as recognised in GRF 300.0 Statement of Financial Position.\n\n###### 9. Other reinsurance assets\n\nReport the value of all other reinsurance assets (refer to instructions for GRF 301.0 Reinsurance Assets and Risk Charge).\n\n###### 10. Investments\n\nReport the value of the investments. The total amount must reconcile with assets backing insurance liabilities (related to GRF 140 series of forms) reported as current and non-current assets in GRF 300.0 Statement of Financial Position.\n\n###### 11. Other investments\n\nReport investments that do not constitute assets backing insurance liabilities attributable to the respective countries listed. The total amount must reconcile with other investments as reported in GRF 300.0 Statement of Financial Position.\n\n###### 12. All other assets\n\nReport the value of other assets (other than those listed above) attributable to the respective countries listed in the form. The value of ‘All other assets’ must represent the remaining total assets of the reporting insurer.\n\n###### 13. Total assets\n\nRepresent the total assets of the reporting insurer. This must reconcile with the total assets as reported in GRF 300.0 Statement of Financial Position.\n\n###### 14. Unearned Premium Liability\n\nReport unearned premium provision as recognised in item 17 ‘Unearned Premium Liability’ GRF 300.0 Statement of Financial Position.\n\n###### 15. Outstanding Claims Liability\n\nThe amount reported is to be measured in accordance with AASB 1023. The total amount must reconcile with the total amount reported at item 16 ‘Outstanding claims liability’ in GRF 300.0 Statement of Financial Position.\n\n###### 16. Borrowings / loan capital\n\nReport the carrying value of any amount borrowed.\n\n###### 17. Other\n\nReport the value of other liabilities (other than those listed above). The value of ‘Other’ must represent the remaining total liabilities of the reporting insurer.\n\n###### 18. Total Liabilities\n\nRepresent the total liabilities of the reporting insurer. This must reconcile with item 24 ‘Total liabilities’ reported in GRF 300.0 Statement of Financial Position.","sortOrder":11},{"sectionNumber":"Instruction Guide","sectionType":"part","heading":"Instruction Guide","content":"## Reporting Form GRF 400.0\n\n## Statement of Risk by Country\n\n# Instruction Guide\n\n### Introduction\n\nGRF 400.0 – Statement of Risk by Country provides selected information of business written by authorised general insurers outside Australia; namely:\n\n-   premium revenue;\n\n-   reinsurance expense;\n-   claims expense;\n-   reinsurance recoveries;\n-   investment income;\n-   unearned premium liability;\n-   outstanding claims liability;\n-   borrowings/loan capital;\n-   deferred reinsurance expense\n-   deferred acquisition costs; and\n-   investments.\n\nThis form only needs to be completed where the insurer has business operations outside of Australia (i.e. where they have items of income, expense, assets, liabilities or capital outside of Australia as defined in this instructions set).\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n1.  Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);\n2.  Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and\n3.  Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nBasis of preparation\n\nIn completing this form, unless otherwise specifically stated, insurers are recommended to adopt the measurement and recognition requirements as required by the prudential reporting framework, as appropriate (i.e. outstanding claims provision and premium liabilities).\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place.\n\nAmounts 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[1\\]](#_ftn1) outstanding at the reporting date must be translated at the spot rate[\\[2\\]](#_ftn2) at the reporting date.\n2.  Foreign currency non-monetary items[\\[3\\]](#_ftn3) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\nReporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 400.0 Statement of Risk by Country.\n\n###   \nSpecific instructions\n\nThe appropriate information is to be reported by country or geographic region specified on the form. This is to be reported according to where the items of income/expense are on risk, assets are invested, and liabilities are located. Enter the relevant details for each country as appropriate.\n\n###### 1. Premium Revenue - Direct & Inwards reinsurance\n\nThis is the premium revenue as required by the APRA forms (refer to instructions GRF 310.1 Premium Revenue and Reinsurance Expense). It is to be reported in respect of total direct business and inwards reinsurance business.\n\nPremium revenue is to be reported in accordance with AASB 1023 ‘General Insurance Contracts’ (AASB 1023) (i.e. earned and unearned components).\n\n###### 2. Reinsurance expense - Direct & Inwards reinsurance\n\nThis is the reinsurance expense as required in form GRF 310.1 Premium Revenue and Reinsurance Expense. It is to be reported in respect of total direct business and inwards reinsurance business.\n\nReinsurance expense is to be reported in accordance with AASB 1023 (i.e. it is to be amortised in accordance with the pattern of reinsurance service received).\n\n###### 3. Claims Expense - Direct & Inwards reinsurance\n\n###### 3.1 Relating to current and prior years\n\nRepresents claims expense in relation to claim payments made in the current year and movements in the outstanding claims provision (i.e. relating to current and prior years) as recognised in GRF 310.0 Statement of Financial Performance.\n\n###### 4. Reinsurance recoveries revenue\n\n###### 4.1 Relating to current and prior years\n\nReport the reinsurance recoveries that relate to claim payments made and movements in the outstanding claims provision as recognised in GRF 310.0 Statement of Financial Performance.\n\n###### 5. Investment Income\n\nInclude investment income as recognised in GRF 310.0 Statement of Financial Performance.\n\n###### 6. Amounts recoverable on reinsurance contracts and outstanding claims\n\nReport the value of amounts recoverable on reinsurance contracts and outstanding claims.\n\n###### 7. Deferred Acquisition Costs\n\nReport deferred acquisition costs as recognised in GRF 300.0 Statement of Financial Position.\n\n###### 8. Deferred Reinsurance Expense\n\nReport deferred reinsurance expense as recognised in GRF 300.0 Statement of Financial Position.\n\n###### 9. Other reinsurance assets\n\nReport the value of all other reinsurance assets (refer to instructions for GRF 301.0 Reinsurance Assets and Risk Charge).\n\n###### 10. Investments\n\nReport the value of the investments. The total amount must reconcile with assets backing insurance liabilities (related to GRF 140 series of forms) reported as current and non-current assets in GRF 300.0 Statement of Financial Position.\n\n###### 11. Other investments\n\nReport investments that do not constitute assets backing insurance liabilities attributable to the respective countries listed. The total amount must reconcile with other investments as reported in GRF 300.0 Statement of Financial Position.\n\n###### 12. All other assets\n\nReport the value of other assets (other than those listed above) attributable to the respective countries listed in the form. The value of ‘All other assets’ must represent the remaining total assets of the reporting insurer.\n\n###### 13. Total assets\n\nRepresent the total assets of the reporting insurer. This must reconcile with the total assets as reported in GRF 300.0 Statement of Financial Position.\n\n###### 14. Unearned Premium Liability\n\nReport unearned premium provision as recognised in item 17 ‘Unearned Premium Liability’ GRF 300.0 Statement of Financial Position.\n\n###### 15. Outstanding Claims Liability\n\nThe amount reported is to be measured in accordance with AASB 1023. The total amount must reconcile with the total amount reported at item 16 ‘Outstanding claims liability’ in GRF 300.0 Statement of Financial Position.\n\n###### 16. Borrowings / loan capital\n\nReport the carrying value of any amount borrowed.\n\n###### 17. Other\n\nReport the value of other liabilities (other than those listed above). The value of ‘Other’ must represent the remaining total liabilities of the reporting insurer.\n\n###### 18. Total Liabilities\n\nRepresent the total liabilities of the reporting insurer. This must reconcile with item 24 ‘Total liabilities’ reported in GRF 300.0 Statement of Financial Position.","sortOrder":12},{"sectionNumber":"Introduction","sectionType":"division","heading":"Introduction","content":"### Introduction\n\nGRF 400.0 – Statement of Risk by Country provides selected information of business written by authorised general insurers outside Australia; namely:\n\n-   premium revenue;\n\n-   reinsurance expense;\n-   claims expense;\n-   reinsurance recoveries;\n-   investment income;\n-   unearned premium liability;\n-   outstanding claims liability;\n-   borrowings/loan capital;\n-   deferred reinsurance expense\n-   deferred acquisition costs; and\n-   investments.\n\nThis form only needs to be completed where the insurer has business operations outside of Australia (i.e. where they have items of income, expense, assets, liabilities or capital outside of Australia as defined in this instructions set).\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n1.  Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);\n2.  Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and\n3.  Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nBasis of preparation\n\nIn completing this form, unless otherwise specifically stated, insurers are recommended to adopt the measurement and recognition requirements as required by the prudential reporting framework, as appropriate (i.e. outstanding claims provision and premium liabilities).\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place.\n\nAmounts 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[1\\]](#_ftn1) outstanding at the reporting date must be translated at the spot rate[\\[2\\]](#_ftn2) at the reporting date.\n2.  Foreign currency non-monetary items[\\[3\\]](#_ftn3) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\nReporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 400.0 Statement of Risk by Country.","sortOrder":13},{"sectionNumber":"Specific instructions","sectionType":"division","heading":"Specific instructions","content":"###   \nSpecific instructions\n\nThe appropriate information is to be reported by country or geographic region specified on the form. This is to be reported according to where the items of income/expense are on risk, assets are invested, and liabilities are located. Enter the relevant details for each country as appropriate.","sortOrder":14},{"sectionNumber":"1. Premium Revenue - Direct & Inwards re","sectionType":"section","heading":"1. Premium Revenue - Direct & Inwards reinsurance","content":"###### 1. Premium Revenue - Direct & Inwards reinsurance\n\nThis is the premium revenue as required by the APRA forms (refer to instructions GRF 310.1 Premium Revenue and Reinsurance Expense). It is to be reported in respect of total direct business and inwards reinsurance business.\n\nPremium revenue is to be reported in accordance with AASB 1023 ‘General Insurance Contracts’ (AASB 1023) (i.e. earned and unearned components).","sortOrder":15},{"sectionNumber":"2. Reinsurance expense - Direct & Inward","sectionType":"section","heading":"2. Reinsurance expense - Direct & Inwards reinsurance","content":"###### 2. Reinsurance expense - Direct & Inwards reinsurance\n\nThis is the reinsurance expense as required in form GRF 310.1 Premium Revenue and Reinsurance Expense. It is to be reported in respect of total direct business and inwards reinsurance business.\n\nReinsurance expense is to be reported in accordance with AASB 1023 (i.e. it is to be amortised in accordance with the pattern of reinsurance service received).","sortOrder":16},{"sectionNumber":"3. Claims Expense - Direct & Inwards rei","sectionType":"section","heading":"3. Claims Expense - Direct & Inwards reinsurance","content":"## Reporting Form GRF 400.0\n\n## Statement of Risk by Country\n\n# Instruction Guide\n\n### Introduction\n\nGRF 400.0 – Statement of Risk by Country provides selected information of business written by authorised general insurers outside Australia; namely:\n\n-   premium revenue;\n\n-   reinsurance expense;\n-   claims expense;\n-   reinsurance recoveries;\n-   investment income;\n-   unearned premium liability;\n-   outstanding claims liability;\n-   borrowings/loan capital;\n-   deferred reinsurance expense\n-   deferred acquisition costs; and\n-   investments.\n\nThis form only needs to be completed where the insurer has business operations outside of Australia (i.e. where they have items of income, expense, assets, liabilities or capital outside of Australia as defined in this instructions set).\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n1.  Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);\n2.  Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and\n3.  Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nBasis of preparation\n\nIn completing this form, unless otherwise specifically stated, insurers are recommended to adopt the measurement and recognition requirements as required by the prudential reporting framework, as appropriate (i.e. outstanding claims provision and premium liabilities).\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place.\n\nAmounts 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[1\\]](#_ftn1) outstanding at the reporting date must be translated at the spot rate[\\[2\\]](#_ftn2) at the reporting date.\n2.  Foreign currency non-monetary items[\\[3\\]](#_ftn3) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\nReporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 400.0 Statement of Risk by Country.\n\n###   \nSpecific instructions\n\nThe appropriate information is to be reported by country or geographic region specified on the form. This is to be reported according to where the items of income/expense are on risk, assets are invested, and liabilities are located. Enter the relevant details for each country as appropriate.\n\n###### 1. Premium Revenue - Direct & Inwards reinsurance\n\nThis is the premium revenue as required by the APRA forms (refer to instructions GRF 310.1 Premium Revenue and Reinsurance Expense). It is to be reported in respect of total direct business and inwards reinsurance business.\n\nPremium revenue is to be reported in accordance with AASB 1023 ‘General Insurance Contracts’ (AASB 1023) (i.e. earned and unearned components).\n\n###### 2. Reinsurance expense - Direct & Inwards reinsurance\n\nThis is the reinsurance expense as required in form GRF 310.1 Premium Revenue and Reinsurance Expense. It is to be reported in respect of total direct business and inwards reinsurance business.\n\nReinsurance expense is to be reported in accordance with AASB 1023 (i.e. it is to be amortised in accordance with the pattern of reinsurance service received).\n\n###### 3. Claims Expense - Direct & Inwards reinsurance\n\n###### 3.1 Relating to current and prior years\n\nRepresents claims expense in relation to claim payments made in the current year and movements in the outstanding claims provision (i.e. relating to current and prior years) as recognised in GRF 310.0 Statement of Financial Performance.\n\n###### 4. Reinsurance recoveries revenue\n\n###### 4.1 Relating to current and prior years\n\nReport the reinsurance recoveries that relate to claim payments made and movements in the outstanding claims provision as recognised in GRF 310.0 Statement of Financial Performance.\n\n###### 5. Investment Income\n\nInclude investment income as recognised in GRF 310.0 Statement of Financial Performance.\n\n###### 6. Amounts recoverable on reinsurance contracts and outstanding claims\n\nReport the value of amounts recoverable on reinsurance contracts and outstanding claims.\n\n###### 7. Deferred Acquisition Costs\n\nReport deferred acquisition costs as recognised in GRF 300.0 Statement of Financial Position.\n\n###### 8. Deferred Reinsurance Expense\n\nReport deferred reinsurance expense as recognised in GRF 300.0 Statement of Financial Position.\n\n###### 9. Other reinsurance assets\n\nReport the value of all other reinsurance assets (refer to instructions for GRF 301.0 Reinsurance Assets and Risk Charge).\n\n###### 10. Investments\n\nReport the value of the investments. The total amount must reconcile with assets backing insurance liabilities (related to GRF 140 series of forms) reported as current and non-current assets in GRF 300.0 Statement of Financial Position.\n\n###### 11. Other investments\n\nReport investments that do not constitute assets backing insurance liabilities attributable to the respective countries listed. The total amount must reconcile with other investments as reported in GRF 300.0 Statement of Financial Position.\n\n###### 12. All other assets\n\nReport the value of other assets (other than those listed above) attributable to the respective countries listed in the form. The value of ‘All other assets’ must represent the remaining total assets of the reporting insurer.\n\n###### 13. Total assets\n\nRepresent the total assets of the reporting insurer. This must reconcile with the total assets as reported in GRF 300.0 Statement of Financial Position.\n\n###### 14. Unearned Premium Liability\n\nReport unearned premium provision as recognised in item 17 ‘Unearned Premium Liability’ GRF 300.0 Statement of Financial Position.\n\n###### 15. Outstanding Claims Liability\n\nThe amount reported is to be measured in accordance with AASB 1023. The total amount must reconcile with the total amount reported at item 16 ‘Outstanding claims liability’ in GRF 300.0 Statement of Financial Position.\n\n###### 16. Borrowings / loan capital\n\nReport the carrying value of any amount borrowed.\n\n###### 17. Other\n\nReport the value of other liabilities (other than those listed above). The value of ‘Other’ must represent the remaining total liabilities of the reporting insurer.\n\n###### 18. Total Liabilities\n\nRepresent the total liabilities of the reporting insurer. This must reconcile with item 24 ‘Total liabilities’ reported in GRF 300.0 Statement of Financial Position.","sortOrder":17},{"sectionNumber":"3.1","sectionType":"section","heading":"Relating to current and prior years","content":"###### 3.1 Relating to current and prior years\n\nRepresents claims expense in relation to claim payments made in the current year and movements in the outstanding claims provision (i.e. relating to current and prior years) as recognised in GRF 310.0 Statement of Financial Performance.","sortOrder":18},{"sectionNumber":"4. Reinsurance recoveries revenue","sectionType":"section","heading":"4. Reinsurance recoveries revenue","content":"## Reporting Form GRF 400.0\n\n## Statement of Risk by Country\n\n# Instruction Guide\n\n### Introduction\n\nGRF 400.0 – Statement of Risk by Country provides selected information of business written by authorised general insurers outside Australia; namely:\n\n-   premium revenue;\n\n-   reinsurance expense;\n-   claims expense;\n-   reinsurance recoveries;\n-   investment income;\n-   unearned premium liability;\n-   outstanding claims liability;\n-   borrowings/loan capital;\n-   deferred reinsurance expense\n-   deferred acquisition costs; and\n-   investments.\n\nThis form only needs to be completed where the insurer has business operations outside of Australia (i.e. where they have items of income, expense, assets, liabilities or capital outside of Australia as defined in this instructions set).\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n1.  Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);\n2.  Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and\n3.  Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nBasis of preparation\n\nIn completing this form, unless otherwise specifically stated, insurers are recommended to adopt the measurement and recognition requirements as required by the prudential reporting framework, as appropriate (i.e. outstanding claims provision and premium liabilities).\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place.\n\nAmounts 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[1\\]](#_ftn1) outstanding at the reporting date must be translated at the spot rate[\\[2\\]](#_ftn2) at the reporting date.\n2.  Foreign currency non-monetary items[\\[3\\]](#_ftn3) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\nReporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 400.0 Statement of Risk by Country.\n\n###   \nSpecific instructions\n\nThe appropriate information is to be reported by country or geographic region specified on the form. This is to be reported according to where the items of income/expense are on risk, assets are invested, and liabilities are located. Enter the relevant details for each country as appropriate.\n\n###### 1. Premium Revenue - Direct & Inwards reinsurance\n\nThis is the premium revenue as required by the APRA forms (refer to instructions GRF 310.1 Premium Revenue and Reinsurance Expense). It is to be reported in respect of total direct business and inwards reinsurance business.\n\nPremium revenue is to be reported in accordance with AASB 1023 ‘General Insurance Contracts’ (AASB 1023) (i.e. earned and unearned components).\n\n###### 2. Reinsurance expense - Direct & Inwards reinsurance\n\nThis is the reinsurance expense as required in form GRF 310.1 Premium Revenue and Reinsurance Expense. It is to be reported in respect of total direct business and inwards reinsurance business.\n\nReinsurance expense is to be reported in accordance with AASB 1023 (i.e. it is to be amortised in accordance with the pattern of reinsurance service received).\n\n###### 3. Claims Expense - Direct & Inwards reinsurance\n\n###### 3.1 Relating to current and prior years\n\nRepresents claims expense in relation to claim payments made in the current year and movements in the outstanding claims provision (i.e. relating to current and prior years) as recognised in GRF 310.0 Statement of Financial Performance.\n\n###### 4. Reinsurance recoveries revenue\n\n###### 4.1 Relating to current and prior years\n\nReport the reinsurance recoveries that relate to claim payments made and movements in the outstanding claims provision as recognised in GRF 310.0 Statement of Financial Performance.\n\n###### 5. Investment Income\n\nInclude investment income as recognised in GRF 310.0 Statement of Financial Performance.\n\n###### 6. Amounts recoverable on reinsurance contracts and outstanding claims\n\nReport the value of amounts recoverable on reinsurance contracts and outstanding claims.\n\n###### 7. Deferred Acquisition Costs\n\nReport deferred acquisition costs as recognised in GRF 300.0 Statement of Financial Position.\n\n###### 8. Deferred Reinsurance Expense\n\nReport deferred reinsurance expense as recognised in GRF 300.0 Statement of Financial Position.\n\n###### 9. Other reinsurance assets\n\nReport the value of all other reinsurance assets (refer to instructions for GRF 301.0 Reinsurance Assets and Risk Charge).\n\n###### 10. Investments\n\nReport the value of the investments. The total amount must reconcile with assets backing insurance liabilities (related to GRF 140 series of forms) reported as current and non-current assets in GRF 300.0 Statement of Financial Position.\n\n###### 11. Other investments\n\nReport investments that do not constitute assets backing insurance liabilities attributable to the respective countries listed. The total amount must reconcile with other investments as reported in GRF 300.0 Statement of Financial Position.\n\n###### 12. All other assets\n\nReport the value of other assets (other than those listed above) attributable to the respective countries listed in the form. The value of ‘All other assets’ must represent the remaining total assets of the reporting insurer.\n\n###### 13. Total assets\n\nRepresent the total assets of the reporting insurer. This must reconcile with the total assets as reported in GRF 300.0 Statement of Financial Position.\n\n###### 14. Unearned Premium Liability\n\nReport unearned premium provision as recognised in item 17 ‘Unearned Premium Liability’ GRF 300.0 Statement of Financial Position.\n\n###### 15. Outstanding Claims Liability\n\nThe amount reported is to be measured in accordance with AASB 1023. The total amount must reconcile with the total amount reported at item 16 ‘Outstanding claims liability’ in GRF 300.0 Statement of Financial Position.\n\n###### 16. Borrowings / loan capital\n\nReport the carrying value of any amount borrowed.\n\n###### 17. Other\n\nReport the value of other liabilities (other than those listed above). The value of ‘Other’ must represent the remaining total liabilities of the reporting insurer.\n\n###### 18. Total Liabilities\n\nRepresent the total liabilities of the reporting insurer. This must reconcile with item 24 ‘Total liabilities’ reported in GRF 300.0 Statement of Financial Position.","sortOrder":19},{"sectionNumber":"4.1","sectionType":"section","heading":"Relating to current and prior years","content":"###### 4.1 Relating to current and prior years\n\nReport the reinsurance recoveries that relate to claim payments made and movements in the outstanding claims provision as recognised in GRF 310.0 Statement of Financial Performance.","sortOrder":20},{"sectionNumber":"5. Investment Income","sectionType":"section","heading":"5. Investment Income","content":"###### 5. Investment Income\n\nInclude investment income as recognised in GRF 310.0 Statement of Financial Performance.","sortOrder":21},{"sectionNumber":"6. Amounts recoverable on reinsurance co","sectionType":"section","heading":"6. Amounts recoverable on reinsurance contracts and outstanding claims","content":"###### 6. Amounts recoverable on reinsurance contracts and outstanding claims\n\nReport the value of amounts recoverable on reinsurance contracts and outstanding claims.","sortOrder":22},{"sectionNumber":"7. Deferred Acquisition Costs","sectionType":"section","heading":"7. Deferred Acquisition Costs","content":"###### 7. Deferred Acquisition Costs\n\nReport deferred acquisition costs as recognised in GRF 300.0 Statement of Financial Position.","sortOrder":23},{"sectionNumber":"8. Deferred Reinsurance Expense","sectionType":"section","heading":"8. Deferred Reinsurance Expense","content":"###### 8. Deferred Reinsurance Expense\n\nReport deferred reinsurance expense as recognised in GRF 300.0 Statement of Financial Position.","sortOrder":24},{"sectionNumber":"9. Other reinsurance assets","sectionType":"section","heading":"9. Other reinsurance assets","content":"###### 9. Other reinsurance assets\n\nReport the value of all other reinsurance assets (refer to instructions for GRF 301.0 Reinsurance Assets and Risk Charge).","sortOrder":25},{"sectionNumber":"10. Investments","sectionType":"section","heading":"10. Investments","content":"###### 10. Investments\n\nReport the value of the investments. The total amount must reconcile with assets backing insurance liabilities (related to GRF 140 series of forms) reported as current and non-current assets in GRF 300.0 Statement of Financial Position.","sortOrder":26},{"sectionNumber":"11. Other investments","sectionType":"section","heading":"11. Other investments","content":"###### 11. Other investments\n\nReport investments that do not constitute assets backing insurance liabilities attributable to the respective countries listed. The total amount must reconcile with other investments as reported in GRF 300.0 Statement of Financial Position.","sortOrder":27},{"sectionNumber":"12. All other assets","sectionType":"section","heading":"12. All other assets","content":"###### 12. All other assets\n\nReport the value of other assets (other than those listed above) attributable to the respective countries listed in the form. The value of ‘All other assets’ must represent the remaining total assets of the reporting insurer.","sortOrder":28},{"sectionNumber":"13. Total assets","sectionType":"section","heading":"13. Total assets","content":"###### 13. Total assets\n\nRepresent the total assets of the reporting insurer. This must reconcile with the total assets as reported in GRF 300.0 Statement of Financial Position.","sortOrder":29},{"sectionNumber":"14. Unearned Premium Liability","sectionType":"section","heading":"14. Unearned Premium Liability","content":"###### 14. Unearned Premium Liability\n\nReport unearned premium provision as recognised in item 17 ‘Unearned Premium Liability’ GRF 300.0 Statement of Financial Position.","sortOrder":30},{"sectionNumber":"15. Outstanding Claims Liability","sectionType":"section","heading":"15. Outstanding Claims Liability","content":"###### 15. Outstanding Claims Liability\n\nThe amount reported is to be measured in accordance with AASB 1023. The total amount must reconcile with the total amount reported at item 16 ‘Outstanding claims liability’ in GRF 300.0 Statement of Financial Position.","sortOrder":31},{"sectionNumber":"16. Borrowings / loan capital","sectionType":"section","heading":"16. Borrowings / loan capital","content":"###### 16. Borrowings / loan capital\n\nReport the carrying value of any amount borrowed.","sortOrder":32},{"sectionNumber":"17. Other","sectionType":"section","heading":"17. Other","content":"###### 17. Other\n\nReport the value of other liabilities (other than those listed above). The value of ‘Other’ must represent the remaining total liabilities of the reporting insurer.","sortOrder":33},{"sectionNumber":"18. Total Liabilities","sectionType":"section","heading":"18. Total Liabilities","content":"###### 18. Total Liabilities\n\nRepresent the total liabilities of the reporting insurer. This must reconcile with item 24 ‘Total liabilities’ reported in GRF 300.0 Statement of Financial Position.","sortOrder":34},{"sectionNumber":"Reporting Form GRF 410.0","sectionType":"part","heading":"Reporting Form GRF 410.0","content":"## Reporting Form GRF 410.0\n\n## Movement in Outstanding Claims Provision\n\n### Instruction Guide\n\n#### Introduction\n\nThe purpose of GRF 410.0 – Movement in Outstanding Claims Provision is to provide information on the following:\n\n1.  Balance of the outstanding claims liability (OCL) by class of business (direct business and reinsurance). This can be disclosed net of reinsurance and non\\-reinsurance recoveries;\n2.  Reserves/Provisions that have been released by class of business (direct business and reinsurance);\n3.  Additions/increments in the provisions by class of business (direct business and reinsurance).\n\nFor insurers writing direct insurance business - for each of the following accident years:\n\n-   current accident year\n-   accident year 1-3 years previous\n-   accident year 4-5 years previous\n-   accident year greater than 5 years previous\n\nFor insurers writing reinsurance business – for each of the following underwriting years:\n\n-   current underwriting year\n-   underwriting year 1-3 years previous\n-   underwriting year 4-5 years previous\n-   underwriting year greater than 5 years previous\n\n## This instruction guide is designed to assist in the completion of GRF 410.0 Movement in Outstanding Claims Provision and provides general directions for preparation and lodgment and explanatory notes for specific items.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n1.  Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);\n2.  Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and\n3.  Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place.\n\nAmounts 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).\n\nThe general requirements of AASB 121 ‘for translation are:\n\n5. Foreign currency monetary items[\\[4\\]](#_ftn4) outstanding at the reporting date must be translated at the spot rate[\\[5\\]](#_ftn5) at the reporting date.\n\n6. Foreign currency non-monetary items[\\[6\\]](#_ftn6) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n\n7. 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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n8. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units, within the number of business days after the end of the quarter as set out in Reporting Standard GRS 410.0 Movement in Outstanding Claims Provision.\n\n###   \nSpecific instructions\n\nClasses of Insurance Business\n\n1.  Direct Business\n\nThe classes of insurance business:\n\n(I). Houseowners/Householders (H & H)\n\nThis class covers the common H & H policies inclusive of:\n\n-   Contents;\n-   Personal property;\n-   Arson; and\n-   Burglary.\n\nPublic liability normally attaching to these products are to be separated and included in Public and Product Liability class of business – item XIII.\n\n(II). Commercial Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) other than insurance covering vehicles defined below under Domestic Motor Vehicle. It includes long and medium haul trucks, cranes and special vehicles, and policies covering fleets.\n\n(III). Domestic Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) covering private use motor vehicles including utilities and lorries, motor cycles, private caravans, box and boat trailers and other vehicles not normally covered by business or commercial policies.\n\n(IV). Travel\n\nInsurance against losses associated with travel including loss of baggage and personal effects, losses on flight cancellations and overseas medical costs.\n\n(V). Fire and Industrial Special Risks (ISR)\n\n##### Fire\n\nIncludes all policies normally classified as 'Fire' and includes:\n\n-   sprinkler leakage;\n-   subsidence;\n-   windstorm;\n-   hailstone;\n-   crop;\n-   arson; and\n-   loss of profits and any extraneous risk normally covered under fire policies, e.g. flood.\n\nISR\n\nStandard policy wordings exist for this type of policy. All policies which contain such standard wordings or where the wording is substantially similar are to be classified as ISR.\n\n(VI). Marine\n\nIncludes Marine Hull (including pleasure craft) and Marine Cargo (including sea and inland transit insurance).\n\n(VII). Aviation\n\nAviation (including aircraft hull and aircraft liability).\n\n(VIII). Mortgage\n\nInsurance against losses arising from the failure of debtors to meet financial obligations to creditors or under which payment of debts is guaranteed. It includes lease guarantee.\n\n(IX). Consumer Credit (CCI)\n\nInsurance to protect a consumer's ability to meet the loan repayments on personal loans and credit card finance in the event of death or loss of income due to injury, illness or unemployment.\n\n(X). Other Accident\n\nIncludes the following types of insurance:\n\n-   Miscellaneous accident (involving cash in transit, theft, loss of money);\n-   All risks (baggage, sporting equipment, guns);\n-   Engineering when not part of ISR or Fire policy;\n-   Plate glass when not part of packaged policy (e.g. houseowners /householders)\n-   Guarantee (Insurance Bonds);\n-   Live Stock;\n-   Pluvius; and\n-   Sickness and Accident which by the terms of the policy provides benefits for no more than three years.\n\n(XI). Other\n\nAll other insurance business not specifically mentioned elsewhere. It includes, for example:\n\n-   Trade Credit;\n-   Extended Warranty (where the insurer extends a manufacturer's or seller’s normal warranty);\n-   Kidnap and Ransom; and\n-   Contingency.\n\n(XII). Compulsory Third Party Motor Vehicle (CTP)\n\nThis class consists only of CTP business.\n\n(XIII). Public and Product Liability\n\n-   Public Liability covers legal liability to the public in respect of bodily injury or property damage arising out of the operation of the insured's business. Product Liability includes policies that provide for compensation for loss and or injury caused by, or as a result of, the use of goods and also environmental clean-up caused by pollution spills where not covered by Fire and ISR policies.\n-   Also will include builders warranty insurance.\n-   Includes public liability attaching to houseowners/householders policies.\n\n(XIV). Professional Indemnity (PI)\n\nPI covers professionals against liability incurred as a result of errors and omissions in performing professional services which has resulted in economic losses suffered by third parties.\n\nIncludes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.\n\n(XV). Employers' Liability (EL)\n\nIncludes:\n\n-   Workers' compensation;\n-   Seamen's compensation; and\n-   Domestic workers compensation.\n\n2. Reinsurance Business\n\nThe classes of business for companies that provide reinsurance are as follows:\n\nTreaty Proportional: This refers to all forms of quota share and surplus reinsurance written on a treaty reinsurance arrangement where the reinsurer is bound to accept all business ceded by the reinsured subject to the terms and conditions of the pre-agreed treaty wording, and shares in the same proportion of premium and losses of the reinsured.\n\nTreaty Excess of Loss: This refers to all reinsurance arrangements where the reinsurer is bound to accept all business ceded by the reinsured and the reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.\n\nFacultative Proportional: This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis and the reinsurer shares in the same proportion of premium and losses of the reinsured.\n\nFacultative Excess of Loss: This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis. The reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.\n\nReinsurance non-split\n\nThis line item classification disclosed under Reinsurance class of business is to be used where it is not possible for the insurer to separately slit out all the classes of reinsurance businesses. However as required by GPS 115 Capital Adequacy: Insurance Risk Capital Charge (GPS 115), where an insurer writes inwards reinsurance business and is unable to split this business into the classes and types listed, they are to use the highest casualty factors on their outstanding claims liabilities.\n\nWhere an insurer writes inwards reinsurance which spans multiple classes and the insurer cannot readily split the contract between classes, APRA suggests that the contract should be allocated using one of the following methods:\n\n(a) allocate the contract to the category which represents the greatest exposure; or\n\n(b) allocate the contract to the category representing the greatest premium income.\n\nAn insurer that writes inwards reinsurance is free to choose which of the above methods it uses, or may use another appropriate method, provided the same method is used for all contracts and all subsequent periods.\n\n###### Outstanding Claims Provision (OCP) net of recoveries (undiscounted)\n\nThe OCL is to be disclosed by type of business (direct business and inward reinsurance business), net of reinsurance and non\\-reinsurance recoveries, as at the reporting date.\n\nThe OCL relates to the liability provision that has been recognised by the insurer in GRF 300.0 Statement of Financial Position, however for the purposes of this form, the OCL must be undiscounted.\n\nFor the purposes of this form the total of the OCL for the current financial year (on an undiscounted basis) is to be allocated across the respective time buckets specified on the form. Accordingly, each year that this form is completed the OCL that is recorded for the respective time buckets will likely change as this is reassessed.\n\nFor the ‘Direct business’ and ‘Reinsurance’ business, amounts are to include all OCLs associated with:\n\n-   the insurance business written directly by the insurer;\n-   reinsurance business under the ‘Reinsurance’ section of Type of Business column. Inward reinsurance includes amounts which relate to inward facultative reinsurance and to inward treaty reinsurance; and\n-   business sourced through underwriting pools or Joint Ventures, or portfolio transfers/acquisitions.\n\nAccident Year\n\nDirect writers of insurance business are to complete this form based on accident year. This refers to the financial year that the losses/claims associated with individual policies are incurred.\n\nUnderwriting Year\n\nInsurers writing reinsurance business are to complete this form based on underwriting year. This refers to the financial year of the insurer in which the policy incepts, regardless of when the premiums and claims are actually reported, booked or paid. For example, the 2005 underwriting year for an insurer with a 30 June balance date includes premiums and claims (both paid and outstanding) relating to policies incepting in the period 1 July 2005 to 30 June 2006. For an insurer with a 31 December balance date, the 2005 underwriting year includes premiums and claims (both paid and outstanding) relating to policies incepting in the period 1 January 2005 to 31 December 2005.\n\nReserve Release\n\nReserve release refers the occasions when a provision was created/posted for a particular prior financial year and subsequently it is found that this provision will be more than is required to pay for the losses associated with this particular accident year for direct writers of insurance and underwriting year for reinsurance writers. In these instances the insurer releases these excess provisions and they become profits in the current financial year of the insurer.\n\nClaim payments (that are debited out of the OCL for accounting purposes) are not to be classified as a reserve release for the purposes of this form.\n\nEnter reserve releases as a positive figure.\n\nReserve Strengthening\n\nReserve strengthening refers the occasions when a provision has been created / posted for a particular prior financial year and subsequently it is found that this provision will be insufficient to pay for the losses associated with this particular accident year for direct writers of insurance and underwriting year for reinsurance writers. In these instances the insurer strengthens or increases these provisions in the current financial year by adding additional provisions to accommodate the losses associated with this particular prior accident / underwriting year and this becomes a reduction in profit (i.e. claims expense in profit and loss in the current financial year).\n\nEnter reserve strengthenings as a positive figure.","sortOrder":35},{"sectionNumber":"Movement in Outstanding Claims Provision","sectionType":"part","heading":"Movement in Outstanding Claims Provision","content":"## Reporting Form GRF 410.0\n\n## Movement in Outstanding Claims Provision\n\n### Instruction Guide\n\n#### Introduction\n\nThe purpose of GRF 410.0 – Movement in Outstanding Claims Provision is to provide information on the following:\n\n1.  Balance of the outstanding claims liability (OCL) by class of business (direct business and reinsurance). This can be disclosed net of reinsurance and non\\-reinsurance recoveries;\n2.  Reserves/Provisions that have been released by class of business (direct business and reinsurance);\n3.  Additions/increments in the provisions by class of business (direct business and reinsurance).\n\nFor insurers writing direct insurance business - for each of the following accident years:\n\n-   current accident year\n-   accident year 1-3 years previous\n-   accident year 4-5 years previous\n-   accident year greater than 5 years previous\n\nFor insurers writing reinsurance business – for each of the following underwriting years:\n\n-   current underwriting year\n-   underwriting year 1-3 years previous\n-   underwriting year 4-5 years previous\n-   underwriting year greater than 5 years previous\n\n## This instruction guide is designed to assist in the completion of GRF 410.0 Movement in Outstanding Claims Provision and provides general directions for preparation and lodgment and explanatory notes for specific items.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n1.  Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);\n2.  Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and\n3.  Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place.\n\nAmounts 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).\n\nThe general requirements of AASB 121 ‘for translation are:\n\n5. Foreign currency monetary items[\\[4\\]](#_ftn4) outstanding at the reporting date must be translated at the spot rate[\\[5\\]](#_ftn5) at the reporting date.\n\n6. Foreign currency non-monetary items[\\[6\\]](#_ftn6) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n\n7. 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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n8. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units, within the number of business days after the end of the quarter as set out in Reporting Standard GRS 410.0 Movement in Outstanding Claims Provision.\n\n###   \nSpecific instructions\n\nClasses of Insurance Business\n\n1.  Direct Business\n\nThe classes of insurance business:\n\n(I). Houseowners/Householders (H & H)\n\nThis class covers the common H & H policies inclusive of:\n\n-   Contents;\n-   Personal property;\n-   Arson; and\n-   Burglary.\n\nPublic liability normally attaching to these products are to be separated and included in Public and Product Liability class of business – item XIII.\n\n(II). Commercial Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) other than insurance covering vehicles defined below under Domestic Motor Vehicle. It includes long and medium haul trucks, cranes and special vehicles, and policies covering fleets.\n\n(III). Domestic Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) covering private use motor vehicles including utilities and lorries, motor cycles, private caravans, box and boat trailers and other vehicles not normally covered by business or commercial policies.\n\n(IV). Travel\n\nInsurance against losses associated with travel including loss of baggage and personal effects, losses on flight cancellations and overseas medical costs.\n\n(V). Fire and Industrial Special Risks (ISR)\n\n##### Fire\n\nIncludes all policies normally classified as 'Fire' and includes:\n\n-   sprinkler leakage;\n-   subsidence;\n-   windstorm;\n-   hailstone;\n-   crop;\n-   arson; and\n-   loss of profits and any extraneous risk normally covered under fire policies, e.g. flood.\n\nISR\n\nStandard policy wordings exist for this type of policy. All policies which contain such standard wordings or where the wording is substantially similar are to be classified as ISR.\n\n(VI). Marine\n\nIncludes Marine Hull (including pleasure craft) and Marine Cargo (including sea and inland transit insurance).\n\n(VII). Aviation\n\nAviation (including aircraft hull and aircraft liability).\n\n(VIII). Mortgage\n\nInsurance against losses arising from the failure of debtors to meet financial obligations to creditors or under which payment of debts is guaranteed. It includes lease guarantee.\n\n(IX). Consumer Credit (CCI)\n\nInsurance to protect a consumer's ability to meet the loan repayments on personal loans and credit card finance in the event of death or loss of income due to injury, illness or unemployment.\n\n(X). Other Accident\n\nIncludes the following types of insurance:\n\n-   Miscellaneous accident (involving cash in transit, theft, loss of money);\n-   All risks (baggage, sporting equipment, guns);\n-   Engineering when not part of ISR or Fire policy;\n-   Plate glass when not part of packaged policy (e.g. houseowners /householders)\n-   Guarantee (Insurance Bonds);\n-   Live Stock;\n-   Pluvius; and\n-   Sickness and Accident which by the terms of the policy provides benefits for no more than three years.\n\n(XI). Other\n\nAll other insurance business not specifically mentioned elsewhere. It includes, for example:\n\n-   Trade Credit;\n-   Extended Warranty (where the insurer extends a manufacturer's or seller’s normal warranty);\n-   Kidnap and Ransom; and\n-   Contingency.\n\n(XII). Compulsory Third Party Motor Vehicle (CTP)\n\nThis class consists only of CTP business.\n\n(XIII). Public and Product Liability\n\n-   Public Liability covers legal liability to the public in respect of bodily injury or property damage arising out of the operation of the insured's business. Product Liability includes policies that provide for compensation for loss and or injury caused by, or as a result of, the use of goods and also environmental clean-up caused by pollution spills where not covered by Fire and ISR policies.\n-   Also will include builders warranty insurance.\n-   Includes public liability attaching to houseowners/householders policies.\n\n(XIV). Professional Indemnity (PI)\n\nPI covers professionals against liability incurred as a result of errors and omissions in performing professional services which has resulted in economic losses suffered by third parties.\n\nIncludes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.\n\n(XV). Employers' Liability (EL)\n\nIncludes:\n\n-   Workers' compensation;\n-   Seamen's compensation; and\n-   Domestic workers compensation.\n\n2. Reinsurance Business\n\nThe classes of business for companies that provide reinsurance are as follows:\n\nTreaty Proportional: This refers to all forms of quota share and surplus reinsurance written on a treaty reinsurance arrangement where the reinsurer is bound to accept all business ceded by the reinsured subject to the terms and conditions of the pre-agreed treaty wording, and shares in the same proportion of premium and losses of the reinsured.\n\nTreaty Excess of Loss: This refers to all reinsurance arrangements where the reinsurer is bound to accept all business ceded by the reinsured and the reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.\n\nFacultative Proportional: This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis and the reinsurer shares in the same proportion of premium and losses of the reinsured.\n\nFacultative Excess of Loss: This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis. The reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.\n\nReinsurance non-split\n\nThis line item classification disclosed under Reinsurance class of business is to be used where it is not possible for the insurer to separately slit out all the classes of reinsurance businesses. However as required by GPS 115 Capital Adequacy: Insurance Risk Capital Charge (GPS 115), where an insurer writes inwards reinsurance business and is unable to split this business into the classes and types listed, they are to use the highest casualty factors on their outstanding claims liabilities.\n\nWhere an insurer writes inwards reinsurance which spans multiple classes and the insurer cannot readily split the contract between classes, APRA suggests that the contract should be allocated using one of the following methods:\n\n(a) allocate the contract to the category which represents the greatest exposure; or\n\n(b) allocate the contract to the category representing the greatest premium income.\n\nAn insurer that writes inwards reinsurance is free to choose which of the above methods it uses, or may use another appropriate method, provided the same method is used for all contracts and all subsequent periods.\n\n###### Outstanding Claims Provision (OCP) net of recoveries (undiscounted)\n\nThe OCL is to be disclosed by type of business (direct business and inward reinsurance business), net of reinsurance and non\\-reinsurance recoveries, as at the reporting date.\n\nThe OCL relates to the liability provision that has been recognised by the insurer in GRF 300.0 Statement of Financial Position, however for the purposes of this form, the OCL must be undiscounted.\n\nFor the purposes of this form the total of the OCL for the current financial year (on an undiscounted basis) is to be allocated across the respective time buckets specified on the form. Accordingly, each year that this form is completed the OCL that is recorded for the respective time buckets will likely change as this is reassessed.\n\nFor the ‘Direct business’ and ‘Reinsurance’ business, amounts are to include all OCLs associated with:\n\n-   the insurance business written directly by the insurer;\n-   reinsurance business under the ‘Reinsurance’ section of Type of Business column. Inward reinsurance includes amounts which relate to inward facultative reinsurance and to inward treaty reinsurance; and\n-   business sourced through underwriting pools or Joint Ventures, or portfolio transfers/acquisitions.\n\nAccident Year\n\nDirect writers of insurance business are to complete this form based on accident year. This refers to the financial year that the losses/claims associated with individual policies are incurred.\n\nUnderwriting Year\n\nInsurers writing reinsurance business are to complete this form based on underwriting year. This refers to the financial year of the insurer in which the policy incepts, regardless of when the premiums and claims are actually reported, booked or paid. For example, the 2005 underwriting year for an insurer with a 30 June balance date includes premiums and claims (both paid and outstanding) relating to policies incepting in the period 1 July 2005 to 30 June 2006. For an insurer with a 31 December balance date, the 2005 underwriting year includes premiums and claims (both paid and outstanding) relating to policies incepting in the period 1 January 2005 to 31 December 2005.\n\nReserve Release\n\nReserve release refers the occasions when a provision was created/posted for a particular prior financial year and subsequently it is found that this provision will be more than is required to pay for the losses associated with this particular accident year for direct writers of insurance and underwriting year for reinsurance writers. In these instances the insurer releases these excess provisions and they become profits in the current financial year of the insurer.\n\nClaim payments (that are debited out of the OCL for accounting purposes) are not to be classified as a reserve release for the purposes of this form.\n\nEnter reserve releases as a positive figure.\n\nReserve Strengthening\n\nReserve strengthening refers the occasions when a provision has been created / posted for a particular prior financial year and subsequently it is found that this provision will be insufficient to pay for the losses associated with this particular accident year for direct writers of insurance and underwriting year for reinsurance writers. In these instances the insurer strengthens or increases these provisions in the current financial year by adding additional provisions to accommodate the losses associated with this particular prior accident / underwriting year and this becomes a reduction in profit (i.e. claims expense in profit and loss in the current financial year).\n\nEnter reserve strengthenings as a positive figure.","sortOrder":36},{"sectionNumber":"This instruction guide is designed to as","sectionType":"part","heading":"This instruction guide is designed to assist in the completion of GRF 410.0 Movement in Outstanding Claims Provision and provides general directions for preparation and lodgment and explanatory notes for specific items.","content":"## This instruction guide is designed to assist in the completion of GRF 410.0 Movement in Outstanding Claims Provision and provides general directions for preparation and lodgment and explanatory notes for specific items.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n1.  Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);\n2.  Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and\n3.  Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place.\n\nAmounts 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).\n\nThe general requirements of AASB 121 ‘for translation are:\n\n5. Foreign currency monetary items[\\[4\\]](#_ftn4) outstanding at the reporting date must be translated at the spot rate[\\[5\\]](#_ftn5) at the reporting date.\n\n6. Foreign currency non-monetary items[\\[6\\]](#_ftn6) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n\n7. 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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n8. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.","sortOrder":39},{"sectionNumber":"Reporting lag","sectionType":"part","heading":"Reporting lag","content":"## Reporting lag\n\nThis form must be lodged for each of the reporting units, within the number of business days after the end of the quarter as set out in Reporting Standard GRS 410.0 Movement in Outstanding Claims Provision.","sortOrder":40},{"sectionNumber":"Fire","sectionType":"section","heading":"Fire","content":"##### Fire\n\nIncludes all policies normally classified as 'Fire' and includes:\n\n-   sprinkler leakage;\n-   subsidence;\n-   windstorm;\n-   hailstone;\n-   crop;\n-   arson; and\n-   loss of profits and any extraneous risk normally covered under fire policies, e.g. flood.\n\nISR\n\nStandard policy wordings exist for this type of policy. All policies which contain such standard wordings or where the wording is substantially similar are to be classified as ISR.\n\n(VI). Marine\n\nIncludes Marine Hull (including pleasure craft) and Marine Cargo (including sea and inland transit insurance).\n\n(VII). Aviation\n\nAviation (including aircraft hull and aircraft liability).\n\n(VIII). Mortgage\n\nInsurance against losses arising from the failure of debtors to meet financial obligations to creditors or under which payment of debts is guaranteed. It includes lease guarantee.\n\n(IX). Consumer Credit (CCI)\n\nInsurance to protect a consumer's ability to meet the loan repayments on personal loans and credit card finance in the event of death or loss of income due to injury, illness or unemployment.\n\n(X). Other Accident\n\nIncludes the following types of insurance:\n\n-   Miscellaneous accident (involving cash in transit, theft, loss of money);\n-   All risks (baggage, sporting equipment, guns);\n-   Engineering when not part of ISR or Fire policy;\n-   Plate glass when not part of packaged policy (e.g. houseowners /householders)\n-   Guarantee (Insurance Bonds);\n-   Live Stock;\n-   Pluvius; and\n-   Sickness and Accident which by the terms of the policy provides benefits for no more than three years.\n\n(XI). Other\n\nAll other insurance business not specifically mentioned elsewhere. It includes, for example:\n\n-   Trade Credit;\n-   Extended Warranty (where the insurer extends a manufacturer's or seller’s normal warranty);\n-   Kidnap and Ransom; and\n-   Contingency.\n\n(XII). Compulsory Third Party Motor Vehicle (CTP)\n\nThis class consists only of CTP business.\n\n(XIII). Public and Product Liability\n\n-   Public Liability covers legal liability to the public in respect of bodily injury or property damage arising out of the operation of the insured's business. Product Liability includes policies that provide for compensation for loss and or injury caused by, or as a result of, the use of goods and also environmental clean-up caused by pollution spills where not covered by Fire and ISR policies.\n-   Also will include builders warranty insurance.\n-   Includes public liability attaching to houseowners/householders policies.\n\n(XIV). Professional Indemnity (PI)\n\nPI covers professionals against liability incurred as a result of errors and omissions in performing professional services which has resulted in economic losses suffered by third parties.\n\nIncludes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.\n\n(XV). Employers' Liability (EL)\n\nIncludes:\n\n-   Workers' compensation;\n-   Seamen's compensation; and\n-   Domestic workers compensation.\n\n2. Reinsurance Business\n\nThe classes of business for companies that provide reinsurance are as follows:\n\nTreaty Proportional: This refers to all forms of quota share and surplus reinsurance written on a treaty reinsurance arrangement where the reinsurer is bound to accept all business ceded by the reinsured subject to the terms and conditions of the pre-agreed treaty wording, and shares in the same proportion of premium and losses of the reinsured.\n\nTreaty Excess of Loss: This refers to all reinsurance arrangements where the reinsurer is bound to accept all business ceded by the reinsured and the reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.\n\nFacultative Proportional: This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis and the reinsurer shares in the same proportion of premium and losses of the reinsured.\n\nFacultative Excess of Loss: This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis. The reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.\n\nReinsurance non-split\n\nThis line item classification disclosed under Reinsurance class of business is to be used where it is not possible for the insurer to separately slit out all the classes of reinsurance businesses. However as required by GPS 115 Capital Adequacy: Insurance Risk Capital Charge (GPS 115), where an insurer writes inwards reinsurance business and is unable to split this business into the classes and types listed, they are to use the highest casualty factors on their outstanding claims liabilities.\n\nWhere an insurer writes inwards reinsurance which spans multiple classes and the insurer cannot readily split the contract between classes, APRA suggests that the contract should be allocated using one of the following methods:\n\n(a) allocate the contract to the category which represents the greatest exposure; or\n\n(b) allocate the contract to the category representing the greatest premium income.\n\nAn insurer that writes inwards reinsurance is free to choose which of the above methods it uses, or may use another appropriate method, provided the same method is used for all contracts and all subsequent periods.","sortOrder":42},{"sectionNumber":"Outstanding Claims Provision (OCP) net o","sectionType":"section","heading":"Outstanding Claims Provision (OCP) net of recoveries (undiscounted)","content":"###### Outstanding Claims Provision (OCP) net of recoveries (undiscounted)\n\nThe OCL is to be disclosed by type of business (direct business and inward reinsurance business), net of reinsurance and non\\-reinsurance recoveries, as at the reporting date.\n\nThe OCL relates to the liability provision that has been recognised by the insurer in GRF 300.0 Statement of Financial Position, however for the purposes of this form, the OCL must be undiscounted.\n\nFor the purposes of this form the total of the OCL for the current financial year (on an undiscounted basis) is to be allocated across the respective time buckets specified on the form. Accordingly, each year that this form is completed the OCL that is recorded for the respective time buckets will likely change as this is reassessed.\n\nFor the ‘Direct business’ and ‘Reinsurance’ business, amounts are to include all OCLs associated with:\n\n-   the insurance business written directly by the insurer;\n-   reinsurance business under the ‘Reinsurance’ section of Type of Business column. Inward reinsurance includes amounts which relate to inward facultative reinsurance and to inward treaty reinsurance; and\n-   business sourced through underwriting pools or Joint Ventures, or portfolio transfers/acquisitions.\n\nAccident Year\n\nDirect writers of insurance business are to complete this form based on accident year. This refers to the financial year that the losses/claims associated with individual policies are incurred.\n\nUnderwriting Year\n\nInsurers writing reinsurance business are to complete this form based on underwriting year. This refers to the financial year of the insurer in which the policy incepts, regardless of when the premiums and claims are actually reported, booked or paid. For example, the 2005 underwriting year for an insurer with a 30 June balance date includes premiums and claims (both paid and outstanding) relating to policies incepting in the period 1 July 2005 to 30 June 2006. For an insurer with a 31 December balance date, the 2005 underwriting year includes premiums and claims (both paid and outstanding) relating to policies incepting in the period 1 January 2005 to 31 December 2005.\n\nReserve Release\n\nReserve release refers the occasions when a provision was created/posted for a particular prior financial year and subsequently it is found that this provision will be more than is required to pay for the losses associated with this particular accident year for direct writers of insurance and underwriting year for reinsurance writers. In these instances the insurer releases these excess provisions and they become profits in the current financial year of the insurer.\n\nClaim payments (that are debited out of the OCL for accounting purposes) are not to be classified as a reserve release for the purposes of this form.\n\nEnter reserve releases as a positive figure.\n\nReserve Strengthening\n\nReserve strengthening refers the occasions when a provision has been created / posted for a particular prior financial year and subsequently it is found that this provision will be insufficient to pay for the losses associated with this particular accident year for direct writers of insurance and underwriting year for reinsurance writers. In these instances the insurer strengthens or increases these provisions in the current financial year by adding additional provisions to accommodate the losses associated with this particular prior accident / underwriting year and this becomes a reduction in profit (i.e. claims expense in profit and loss in the current financial year).\n\nEnter reserve strengthenings as a positive figure.","sortOrder":43},{"sectionNumber":"Reporting Form GRF 420.0","sectionType":"part","heading":"Reporting Form GRF 420.0","content":"## Reporting Form GRF 420.0\n\n## Premium Revenue by State and Territory of Australia\n\n### Instruction Guide\n\n#### Introduction\n\nGRF 420.0 – Premium Revenue by State and Territory of Australia captures data required by the Australian Bureau of Statistics. Premium revenue inside Australia is to be reported by class of business for each state or territory of Australia, based on where the risk is located.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\n# Reporting entities\n\nThis form is to be completed by:\n\n4. Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations); and\n\n5. Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nThis form is not to be completed by authorised reinsurers.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the reporting of premium revenue in this form. Specifically, premium revenue is to be recognised as per the instructions to GRF 310.1 Premium Revenue and Reinsurance Expense.\n\nWhere the insurers operations are wholly within Australia, total premium revenue per this form should agree with the aggregate of premium revenue disclosed in GRF 310.1 Premium Revenue and Reinsurance Expense.\n\nThe amounts within GRF 310.1 Premium Revenue and Reinsurance Expense should follow the recognition and measurement requirements for premium revenue contained in AASB 1023 ‘General Insurance Contracts’ (AASB 1023).\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 420.0 Premium Revenue by State and Territory of Australia.\n\n  \nSpecific instructions\n\nClasses of Insurance Business\n\n1.  Direct Business\n\nThe classes of insurance business are as follows:\n\n(I). Houseowners/Householders (H & H)\n\nThis class covers the common H & H policies inclusive of:\n\n-   Contents;\n-   Personal property;\n-   Arson; and\n-   Burglary.\n\nPublic liability normally attaching to these products are to be separated and included in Public and Product Liability class of business – item XIII.\n\n(II). Commercial Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) other than insurance covering vehicles defined below under Domestic Motor Vehicle. It includes long and medium haul trucks, cranes and special vehicles and policies covering fleets.\n\n(III). Domestic Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) covering private use motor vehicles including utilities and lorries, motor cycles, private caravans, box and boat trailers and other vehicles not normally covered by business or commercial policies.\n\n(IV). Travel\n\nInsurance against losses associated with travel including loss of baggage and personal effects, losses on flight cancellations and overseas medical costs.\n\n(V). Fire and Industrial Special Risks (ISR)\n\nFire\n\nIncludes all policies normally classified as 'Fire' and includes:\n\n-   sprinkler leakage;\n-   subsidence;\n-   windstorm;\n-   hailstone;\n-   crop;\n-   arson; and\n-   loss of profits and any extraneous risk normally covered under fire policies, e.g. flood.\n\nISR\n\nStandard policy wordings exist for this type of policy. All policies which contain such standard wordings or where the wording is substantially similar are to be classified as ISR.\n\n(VI). Marine\n\nIncludes Marine Hull (including pleasure craft) and Marine Cargo (including sea and inland transit insurance).\n\n(VII). Aviation\n\nAviation (including aircraft hull and aircraft liability).\n\n(VIII). Mortgage\n\nInsurance against losses arising from the failure of debtors to meet financial obligations to creditors or under which payment of debts is guaranteed. It includes lease guarantee.\n\n(IX). Consumer Credit (CCI)\n\nInsurance to protect a consumer's ability to meet the loan repayments on personal loans and credit card finance in the event of death or loss of income due to injury, illness or unemployment.\n\n(X). Other Accident\n\nIncludes the following types of insurance:\n\n-   Miscellaneous accident (involving cash in transit, theft, loss of money);\n-   All risks (baggage, sporting equipment, guns);\n-   Engineering when not part of ISR or Fire policy;\n-   Plate glass when not part of packaged policy (e.g. houseowners /householders)\n-   Guarantee (Insurance Bonds);\n-   Live Stock;\n-   Pluvius; and\n-   Sickness and Accident which by the terms of the policy provides benefits for no more than three years.\n\n(XI). Other\n\nAll other insurance business not specifically mentioned elsewhere. It includes, for example:\n\n-   Trade Credit;\n-   Extended Warranty (where the insurer extends a manufacturer's or seller’s normal warranty);\n-   Kidnap and Ransom; and\n-   Contingency.\n\n(XII). Compulsory Third Party Motor Vehicle (CTP)\n\nThis class consists only of CTP business.\n\n(XIII). Public and Product Liability\n\n-   Public Liability covers legal liability to the public in respect of bodily injury or property damage arising out of the operation of the insured's business. Product Liability includes policies that provide for compensation for loss and or injury caused by, or as a result of, the use of goods and also environmental clean-up caused by pollution spills where not covered by Fire and ISR policies.\n-   Also will include builders warranty insurance.\n-   Includes public liability attaching to houseowners/householders policies.\n\n(XIV). Professional Indemnity (PI)\n\nPI covers professionals against liability incurred as a result of errors and omissions in performing professional services which has resulted in economic losses suffered by third parties.\n\nIncludes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.\n\n(XV). Employers' Liability (EL)\n\nIncludes:\n\n-   Workers' compensation;\n-   Seamen's compensation; and\n-   Domestic workers compensation.\n\nInwards reinsurance\n\nInclude the aggregate value of all inwards reinsurance business in this line item.\n\n### Premium Revenue - Each State and Territory\n\nReport premium revenue Inside Australia according to where the risk is located.\n\nThis is the premium revenue as required by the APRA forms (refer to instructions GRF 310.1 Premium Revenue and Reinsurance Expense). Premium revenue is not to be reported in accordance with AASB 1023 ‘General Insurance Contracts’ (i.e. earned and unearned components).\n\nPremium revenue must be reported separately for:\n\n-   Direct business; and\n    Inwards reinsurance business.\n\nPremium revenue must be recognised on a basis that is consistent with the measurement of premiums liabilities as measured in accordance with GPS 310 Audit and Actuarial Reporting and Valuation.\n\nPremium revenue must be recognised in line with the following:\n\n-   Premium recognition for direct business: Premium revenue must be recognised fully upfront on the date the policy is accepted (bound) by insurers writing direct business.\n-   Premium recognition for inwards reinsurance business: Premium revenue for inwards reinsurance business is to be recognised from the date of acceptance of the reinsurance risk by the reinsurer. Reinsurers are required to recognise the premium based on the Gross Net Premium Income to be written by the direct insurer under the contract for proportional reinsurance. For excess of loss reinsurance contracts, the premium revenue is to be recognised on the basis of the agreed minimum/deposit premium, which will be subject to a final adjustment factor applied to the final declared values of the premium determinant.\n-   Premium revenue must be discounted where it is to be received beyond the current year of cover under an insurance/reinsurance contract. In these cases, use the discount rate as required in calculating insurance liabilities in accordance with GPS 310 Audit and Actuarial Reporting and Valuation.\n-   Premium revenue excludes amounts collected on behalf of third parties i.e. government stamp duty and taxes.\n-   Levies charged to insured, such as fire service levies, are to be included as premium revenue.\n-   Premium refunds and rebates are to be deducted from premium revenue.\n-   For instalment premium policies, the amount of the annualised premium is to be used. Where premium is calculated on an adjustment basis, the estimated annual premium is to be brought to account, with the estimated premium being replaced by the actual amount as it becomes known.\n-   Where premium is accepted on a deposit basis, the full annual premium is to be brought into account.\n-   Premium revenue must be gross of reinsurance expense.\n-   Premium revenue includes premium receivable on unclosed business. This includes the business which has been accepted by the insurer/reinsurer prior to the balance date but there is insufficient information to fully identify the business.","sortOrder":44},{"sectionNumber":"Premium Revenue by State and Territory o","sectionType":"part","heading":"Premium Revenue by State and Territory of Australia","content":"## Reporting Form GRF 420.0\n\n## Premium Revenue by State and Territory of Australia\n\n### Instruction Guide\n\n#### Introduction\n\nGRF 420.0 – Premium Revenue by State and Territory of Australia captures data required by the Australian Bureau of Statistics. Premium revenue inside Australia is to be reported by class of business for each state or territory of Australia, based on where the risk is located.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\n# Reporting entities\n\nThis form is to be completed by:\n\n4. Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations); and\n\n5. Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nThis form is not to be completed by authorised reinsurers.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the reporting of premium revenue in this form. Specifically, premium revenue is to be recognised as per the instructions to GRF 310.1 Premium Revenue and Reinsurance Expense.\n\nWhere the insurers operations are wholly within Australia, total premium revenue per this form should agree with the aggregate of premium revenue disclosed in GRF 310.1 Premium Revenue and Reinsurance Expense.\n\nThe amounts within GRF 310.1 Premium Revenue and Reinsurance Expense should follow the recognition and measurement requirements for premium revenue contained in AASB 1023 ‘General Insurance Contracts’ (AASB 1023).\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 420.0 Premium Revenue by State and Territory of Australia.\n\n  \nSpecific instructions\n\nClasses of Insurance Business\n\n1.  Direct Business\n\nThe classes of insurance business are as follows:\n\n(I). Houseowners/Householders (H & H)\n\nThis class covers the common H & H policies inclusive of:\n\n-   Contents;\n-   Personal property;\n-   Arson; and\n-   Burglary.\n\nPublic liability normally attaching to these products are to be separated and included in Public and Product Liability class of business – item XIII.\n\n(II). Commercial Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) other than insurance covering vehicles defined below under Domestic Motor Vehicle. It includes long and medium haul trucks, cranes and special vehicles and policies covering fleets.\n\n(III). Domestic Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) covering private use motor vehicles including utilities and lorries, motor cycles, private caravans, box and boat trailers and other vehicles not normally covered by business or commercial policies.\n\n(IV). Travel\n\nInsurance against losses associated with travel including loss of baggage and personal effects, losses on flight cancellations and overseas medical costs.\n\n(V). Fire and Industrial Special Risks (ISR)\n\nFire\n\nIncludes all policies normally classified as 'Fire' and includes:\n\n-   sprinkler leakage;\n-   subsidence;\n-   windstorm;\n-   hailstone;\n-   crop;\n-   arson; and\n-   loss of profits and any extraneous risk normally covered under fire policies, e.g. flood.\n\nISR\n\nStandard policy wordings exist for this type of policy. All policies which contain such standard wordings or where the wording is substantially similar are to be classified as ISR.\n\n(VI). Marine\n\nIncludes Marine Hull (including pleasure craft) and Marine Cargo (including sea and inland transit insurance).\n\n(VII). Aviation\n\nAviation (including aircraft hull and aircraft liability).\n\n(VIII). Mortgage\n\nInsurance against losses arising from the failure of debtors to meet financial obligations to creditors or under which payment of debts is guaranteed. It includes lease guarantee.\n\n(IX). Consumer Credit (CCI)\n\nInsurance to protect a consumer's ability to meet the loan repayments on personal loans and credit card finance in the event of death or loss of income due to injury, illness or unemployment.\n\n(X). Other Accident\n\nIncludes the following types of insurance:\n\n-   Miscellaneous accident (involving cash in transit, theft, loss of money);\n-   All risks (baggage, sporting equipment, guns);\n-   Engineering when not part of ISR or Fire policy;\n-   Plate glass when not part of packaged policy (e.g. houseowners /householders)\n-   Guarantee (Insurance Bonds);\n-   Live Stock;\n-   Pluvius; and\n-   Sickness and Accident which by the terms of the policy provides benefits for no more than three years.\n\n(XI). Other\n\nAll other insurance business not specifically mentioned elsewhere. It includes, for example:\n\n-   Trade Credit;\n-   Extended Warranty (where the insurer extends a manufacturer's or seller’s normal warranty);\n-   Kidnap and Ransom; and\n-   Contingency.\n\n(XII). Compulsory Third Party Motor Vehicle (CTP)\n\nThis class consists only of CTP business.\n\n(XIII). Public and Product Liability\n\n-   Public Liability covers legal liability to the public in respect of bodily injury or property damage arising out of the operation of the insured's business. Product Liability includes policies that provide for compensation for loss and or injury caused by, or as a result of, the use of goods and also environmental clean-up caused by pollution spills where not covered by Fire and ISR policies.\n-   Also will include builders warranty insurance.\n-   Includes public liability attaching to houseowners/householders policies.\n\n(XIV). Professional Indemnity (PI)\n\nPI covers professionals against liability incurred as a result of errors and omissions in performing professional services which has resulted in economic losses suffered by third parties.\n\nIncludes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.\n\n(XV). Employers' Liability (EL)\n\nIncludes:\n\n-   Workers' compensation;\n-   Seamen's compensation; and\n-   Domestic workers compensation.\n\nInwards reinsurance\n\nInclude the aggregate value of all inwards reinsurance business in this line item.\n\n### Premium Revenue - Each State and Territory\n\nReport premium revenue Inside Australia according to where the risk is located.\n\nThis is the premium revenue as required by the APRA forms (refer to instructions GRF 310.1 Premium Revenue and Reinsurance Expense). Premium revenue is not to be reported in accordance with AASB 1023 ‘General Insurance Contracts’ (i.e. earned and unearned components).\n\nPremium revenue must be reported separately for:\n\n-   Direct business; and\n    Inwards reinsurance business.\n\nPremium revenue must be recognised on a basis that is consistent with the measurement of premiums liabilities as measured in accordance with GPS 310 Audit and Actuarial Reporting and Valuation.\n\nPremium revenue must be recognised in line with the following:\n\n-   Premium recognition for direct business: Premium revenue must be recognised fully upfront on the date the policy is accepted (bound) by insurers writing direct business.\n-   Premium recognition for inwards reinsurance business: Premium revenue for inwards reinsurance business is to be recognised from the date of acceptance of the reinsurance risk by the reinsurer. Reinsurers are required to recognise the premium based on the Gross Net Premium Income to be written by the direct insurer under the contract for proportional reinsurance. For excess of loss reinsurance contracts, the premium revenue is to be recognised on the basis of the agreed minimum/deposit premium, which will be subject to a final adjustment factor applied to the final declared values of the premium determinant.\n-   Premium revenue must be discounted where it is to be received beyond the current year of cover under an insurance/reinsurance contract. In these cases, use the discount rate as required in calculating insurance liabilities in accordance with GPS 310 Audit and Actuarial Reporting and Valuation.\n-   Premium revenue excludes amounts collected on behalf of third parties i.e. government stamp duty and taxes.\n-   Levies charged to insured, such as fire service levies, are to be included as premium revenue.\n-   Premium refunds and rebates are to be deducted from premium revenue.\n-   For instalment premium policies, the amount of the annualised premium is to be used. Where premium is calculated on an adjustment basis, the estimated annual premium is to be brought to account, with the estimated premium being replaced by the actual amount as it becomes known.\n-   Where premium is accepted on a deposit basis, the full annual premium is to be brought into account.\n-   Premium revenue must be gross of reinsurance expense.\n-   Premium revenue includes premium receivable on unclosed business. This includes the business which has been accepted by the insurer/reinsurer prior to the balance date but there is insufficient information to fully identify the business.","sortOrder":45},{"sectionNumber":"Reporting entities","sectionType":"part","heading":"Reporting entities","content":"# Reporting entities\n\nThis form is to be completed by:\n\n4. Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations); and\n\n5. Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nThis form is not to be completed by authorised reinsurers.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place.","sortOrder":48},{"sectionNumber":"Basis of preparation","sectionType":"part","heading":"Basis of preparation","content":"## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the reporting of premium revenue in this form. Specifically, premium revenue is to be recognised as per the instructions to GRF 310.1 Premium Revenue and Reinsurance Expense.\n\nWhere the insurers operations are wholly within Australia, total premium revenue per this form should agree with the aggregate of premium revenue disclosed in GRF 310.1 Premium Revenue and Reinsurance Expense.\n\nThe amounts within GRF 310.1 Premium Revenue and Reinsurance Expense should follow the recognition and measurement requirements for premium revenue contained in AASB 1023 ‘General Insurance Contracts’ (AASB 1023).\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.","sortOrder":49},{"sectionNumber":"Premium Revenue - Each State and Territo","sectionType":"division","heading":"Premium Revenue - Each State and Territory","content":"### Premium Revenue - Each State and Territory\n\nReport premium revenue Inside Australia according to where the risk is located.\n\nThis is the premium revenue as required by the APRA forms (refer to instructions GRF 310.1 Premium Revenue and Reinsurance Expense). Premium revenue is not to be reported in accordance with AASB 1023 ‘General Insurance Contracts’ (i.e. earned and unearned components).\n\nPremium revenue must be reported separately for:\n\n-   Direct business; and\n    Inwards reinsurance business.\n\nPremium revenue must be recognised on a basis that is consistent with the measurement of premiums liabilities as measured in accordance with GPS 310 Audit and Actuarial Reporting and Valuation.\n\nPremium revenue must be recognised in line with the following:\n\n-   Premium recognition for direct business: Premium revenue must be recognised fully upfront on the date the policy is accepted (bound) by insurers writing direct business.\n-   Premium recognition for inwards reinsurance business: Premium revenue for inwards reinsurance business is to be recognised from the date of acceptance of the reinsurance risk by the reinsurer. Reinsurers are required to recognise the premium based on the Gross Net Premium Income to be written by the direct insurer under the contract for proportional reinsurance. For excess of loss reinsurance contracts, the premium revenue is to be recognised on the basis of the agreed minimum/deposit premium, which will be subject to a final adjustment factor applied to the final declared values of the premium determinant.\n-   Premium revenue must be discounted where it is to be received beyond the current year of cover under an insurance/reinsurance contract. In these cases, use the discount rate as required in calculating insurance liabilities in accordance with GPS 310 Audit and Actuarial Reporting and Valuation.\n-   Premium revenue excludes amounts collected on behalf of third parties i.e. government stamp duty and taxes.\n-   Levies charged to insured, such as fire service levies, are to be included as premium revenue.\n-   Premium refunds and rebates are to be deducted from premium revenue.\n-   For instalment premium policies, the amount of the annualised premium is to be used. Where premium is calculated on an adjustment basis, the estimated annual premium is to be brought to account, with the estimated premium being replaced by the actual amount as it becomes known.\n-   Where premium is accepted on a deposit basis, the full annual premium is to be brought into account.\n-   Premium revenue must be gross of reinsurance expense.\n-   Premium revenue includes premium receivable on unclosed business. This includes the business which has been accepted by the insurer/reinsurer prior to the balance date but there is insufficient information to fully identify the business.","sortOrder":51},{"sectionNumber":"Reporting Form GRF 430.0","sectionType":"part","heading":"Reporting Form GRF 430.0","content":"## Reporting Form GRF 430.0\n\n## Claims Expense by State and Territory of Australia\n\n# Instruction Guide\n\n### Introduction\n\nGRF 430.0 – Claims Expense by State and Territory of Australia captures data required by the Australian Bureau of Statistics. Claims expense inside Australia is to be reported by class of business for each state or territory of Australia, based on where the risk is located.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\n## Reporting entity\n\nThis form is to be completed by:\n\n6. Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations); and\n\n7. Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nThis form is not to be completed by authorised reinsurers.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the reporting of claims expense in this form. Specifically, claims expense is to be recognised as per the instructions to GRF 310.2 Claims Expense and Reinsurance Recoveries.\n\nWhere the insurer’s operations are wholly within Australia, total claims expense per this form should agree to the aggregate of claims expense disclosed in GRF 310.2 Claims Expense and Reinsurance Recoveries.\n\nThe amounts within GRF 310.2 Claims Expense and Reinsurance Recoveries should follow the recognition and measurement requirements for claims expense contained in AASB 1023 ‘General Insurance Contracts’.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units, within the number of business days after the end of the quarter as set out in Reporting Standard GRS 430.0 Claims Expense by State and Territory of Australia.\n\n###   \nSpecific instructions\n\nClasses of Insurance Business\n\n1.  Direct Business\n\nThe classes of insurance business are as follows:\n\n(I). Houseowners/Householders (H & H)\n\nThis class covers the common H & H policies inclusive of:\n\n-   Contents;\n-   Personal property;\n-   Arson; and\n-   Burglary.\n\nPublic liability normally attaching to these products are to be separated and included in Public and Product Liability class of business – item (XIII).\n\n(II). Commercial Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) other than insurance covering vehicles defined below under Domestic Motor Vehicle. It includes long and medium haul trucks, cranes and special vehicles and policies covering fleets.\n\n(III). Domestic Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) covering private use motor vehicles including utilities and lorries, motor cycles, private caravans, box and boat trailers and other vehicles not normally covered by business or commercial policies.\n\n(IV). Travel\n\nInsurance against losses associated with travel including loss of baggage and personal effects, losses on flight cancellations and overseas medical costs.\n\n(V). Fire and Industrial Special Risks (ISR)\n\n##### Fire\n\nIncludes all policies normally classified as 'Fire' and includes:\n\n-   sprinkler leakage;\n-   subsidence;\n-   windstorm;\n-   hailstone;\n-   crop;\n-   arson; and\n-   loss of profits and any extraneous risk normally covered under fire policies, e.g. flood.\n\n##### ISR\n\nStandard policy wordings exist for this type of policy. All policies which contain such standard wordings or where the wording is substantially similar are to be classified as ISR.\n\n(VI). Marine\n\nIncludes Marine Hull (including pleasure craft) and Marine Cargo (including sea and inland transit insurance).\n\n(VII). Aviation\n\nAviation (including aircraft hull and aircraft liability).\n\n(VIII). Mortgage\n\nInsurance against losses arising from the failure of debtors to meet financial obligations to creditors or under which payment of debts is guaranteed. It includes lease guarantee.\n\n(IX). Consumer Credit (CCI)\n\nInsurance to protect a consumer's ability to meet the loan repayments on personal loans and credit card finance in the event of death or loss of income due to injury, illness or unemployment.\n\n(X). Other Accident\n\nIncludes the following types of insurance:\n\n-   Miscellaneous accident (involving cash in transit, theft, loss of money);\n-   All risks (baggage, sporting equipment, guns);\n-   Engineering when not part of ISR or Fire policy;\n-   Plate glass when not part of packaged policy (e.g. houseowners /householders)\n-   Guarantee (Insurance Bonds);\n-   Live Stock;\n-   Pluvius; and,\n-   Sickness and Accident which by the terms of the policy provides benefits for no more than three years.\n\n(XI). Other\n\nAll other insurance business not specifically mentioned elsewhere. It includes, for example:\n\n-   Trade Credit;\n-   Extended Warranty (where the insurer extends a manufacturer's or seller’s normal warranty);\n-   Kidnap and Ransom; and\n-   Contingency.\n\n(XII). Compulsory Third Party Motor Vehicle (CTP)\n\nThis class consists only of CTP business.\n\n(XIII). Public and Product Liability\n\n-   Public Liability covers legal liability to the public in respect of bodily injury or property damage arising out of the operation of the insured's business. Product Liability includes policies that provide for compensation for loss and or injury caused by, or as a result of, the use of goods and also environmental clean-up caused by pollution spills where not covered by Fire and ISR policies.\n-   Also will include builders warranty insurance.\n-   Includes public liability attaching to houseowners/householders policies.\n\n(XIV). Professional Indemnity (PI)\n\nPI covers professionals against liability incurred as a result of errors and omissions in performing professional services which has resulted in economic losses suffered by third parties.\n\nIncludes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.\n\n(XV). Employers' Liability (EL)\n\nIncludes:\n\n-   Workers' compensation;\n-   Seamen's compensation; and\n-   Domestic workers compensation.\n\nInwards reinsurance\n\nInclude the aggregate value of all inwards reinsurance business in this line item.\n\n#### Claims Expense – Each State and Territory\n\nReport claims expense inside Australia according to where the risk is located.\n\nClaims expense for the purpose of this form is to be interpreted as having the same meaning as claims expense calculated and reported in GRF 310.2 Claims Expense and Reinsurance Recoveries.\n\nWhere the insurer does not have insurance business outside of Australia (i.e. claims liabilities), the following should apply:\n\n-   the total claims expense amounts for all direct classes of business on this form should agree with the aggregate amount of claims expense recorded for ‘Direct Business’ in GRF 310.2 Claims Expense and Reinsurance Recoveries; and\n-   the total claims expense amounts for ‘Inwards reinsurance’ on this form should agree with the aggregate amount of claims expense recorded for reinsurance in GRF 310.2 Claims Expense and Reinsurance Recoveries.","sortOrder":52},{"sectionNumber":"Claims Expense by State and Territory of","sectionType":"part","heading":"Claims Expense by State and Territory of Australia","content":"## Reporting Form GRF 430.0\n\n## Claims Expense by State and Territory of Australia\n\n# Instruction Guide\n\n### Introduction\n\nGRF 430.0 – Claims Expense by State and Territory of Australia captures data required by the Australian Bureau of Statistics. Claims expense inside Australia is to be reported by class of business for each state or territory of Australia, based on where the risk is located.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\n## Reporting entity\n\nThis form is to be completed by:\n\n6. Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations); and\n\n7. Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nThis form is not to be completed by authorised reinsurers.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the reporting of claims expense in this form. Specifically, claims expense is to be recognised as per the instructions to GRF 310.2 Claims Expense and Reinsurance Recoveries.\n\nWhere the insurer’s operations are wholly within Australia, total claims expense per this form should agree to the aggregate of claims expense disclosed in GRF 310.2 Claims Expense and Reinsurance Recoveries.\n\nThe amounts within GRF 310.2 Claims Expense and Reinsurance Recoveries should follow the recognition and measurement requirements for claims expense contained in AASB 1023 ‘General Insurance Contracts’.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units, within the number of business days after the end of the quarter as set out in Reporting Standard GRS 430.0 Claims Expense by State and Territory of Australia.\n\n###   \nSpecific instructions\n\nClasses of Insurance Business\n\n1.  Direct Business\n\nThe classes of insurance business are as follows:\n\n(I). Houseowners/Householders (H & H)\n\nThis class covers the common H & H policies inclusive of:\n\n-   Contents;\n-   Personal property;\n-   Arson; and\n-   Burglary.\n\nPublic liability normally attaching to these products are to be separated and included in Public and Product Liability class of business – item (XIII).\n\n(II). Commercial Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) other than insurance covering vehicles defined below under Domestic Motor Vehicle. It includes long and medium haul trucks, cranes and special vehicles and policies covering fleets.\n\n(III). Domestic Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) covering private use motor vehicles including utilities and lorries, motor cycles, private caravans, box and boat trailers and other vehicles not normally covered by business or commercial policies.\n\n(IV). Travel\n\nInsurance against losses associated with travel including loss of baggage and personal effects, losses on flight cancellations and overseas medical costs.\n\n(V). Fire and Industrial Special Risks (ISR)\n\n##### Fire\n\nIncludes all policies normally classified as 'Fire' and includes:\n\n-   sprinkler leakage;\n-   subsidence;\n-   windstorm;\n-   hailstone;\n-   crop;\n-   arson; and\n-   loss of profits and any extraneous risk normally covered under fire policies, e.g. flood.\n\n##### ISR\n\nStandard policy wordings exist for this type of policy. All policies which contain such standard wordings or where the wording is substantially similar are to be classified as ISR.\n\n(VI). Marine\n\nIncludes Marine Hull (including pleasure craft) and Marine Cargo (including sea and inland transit insurance).\n\n(VII). Aviation\n\nAviation (including aircraft hull and aircraft liability).\n\n(VIII). Mortgage\n\nInsurance against losses arising from the failure of debtors to meet financial obligations to creditors or under which payment of debts is guaranteed. It includes lease guarantee.\n\n(IX). Consumer Credit (CCI)\n\nInsurance to protect a consumer's ability to meet the loan repayments on personal loans and credit card finance in the event of death or loss of income due to injury, illness or unemployment.\n\n(X). Other Accident\n\nIncludes the following types of insurance:\n\n-   Miscellaneous accident (involving cash in transit, theft, loss of money);\n-   All risks (baggage, sporting equipment, guns);\n-   Engineering when not part of ISR or Fire policy;\n-   Plate glass when not part of packaged policy (e.g. houseowners /householders)\n-   Guarantee (Insurance Bonds);\n-   Live Stock;\n-   Pluvius; and,\n-   Sickness and Accident which by the terms of the policy provides benefits for no more than three years.\n\n(XI). Other\n\nAll other insurance business not specifically mentioned elsewhere. It includes, for example:\n\n-   Trade Credit;\n-   Extended Warranty (where the insurer extends a manufacturer's or seller’s normal warranty);\n-   Kidnap and Ransom; and\n-   Contingency.\n\n(XII). Compulsory Third Party Motor Vehicle (CTP)\n\nThis class consists only of CTP business.\n\n(XIII). Public and Product Liability\n\n-   Public Liability covers legal liability to the public in respect of bodily injury or property damage arising out of the operation of the insured's business. Product Liability includes policies that provide for compensation for loss and or injury caused by, or as a result of, the use of goods and also environmental clean-up caused by pollution spills where not covered by Fire and ISR policies.\n-   Also will include builders warranty insurance.\n-   Includes public liability attaching to houseowners/householders policies.\n\n(XIV). Professional Indemnity (PI)\n\nPI covers professionals against liability incurred as a result of errors and omissions in performing professional services which has resulted in economic losses suffered by third parties.\n\nIncludes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.\n\n(XV). Employers' Liability (EL)\n\nIncludes:\n\n-   Workers' compensation;\n-   Seamen's compensation; and\n-   Domestic workers compensation.\n\nInwards reinsurance\n\nInclude the aggregate value of all inwards reinsurance business in this line item.\n\n#### Claims Expense – Each State and Territory\n\nReport claims expense inside Australia according to where the risk is located.\n\nClaims expense for the purpose of this form is to be interpreted as having the same meaning as claims expense calculated and reported in GRF 310.2 Claims Expense and Reinsurance Recoveries.\n\nWhere the insurer does not have insurance business outside of Australia (i.e. claims liabilities), the following should apply:\n\n-   the total claims expense amounts for all direct classes of business on this form should agree with the aggregate amount of claims expense recorded for ‘Direct Business’ in GRF 310.2 Claims Expense and Reinsurance Recoveries; and\n-   the total claims expense amounts for ‘Inwards reinsurance’ on this form should agree with the aggregate amount of claims expense recorded for reinsurance in GRF 310.2 Claims Expense and Reinsurance Recoveries.","sortOrder":53},{"sectionNumber":"Reporting entity","sectionType":"part","heading":"Reporting entity","content":"## Reporting entity\n\nThis form is to be completed by:\n\n6. Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations); and\n\n7. Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nThis form is not to be completed by authorised reinsurers.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place.","sortOrder":56},{"sectionNumber":"ISR","sectionType":"section","heading":"ISR","content":"##### ISR\n\nStandard policy wordings exist for this type of policy. All policies which contain such standard wordings or where the wording is substantially similar are to be classified as ISR.\n\n(VI). Marine\n\nIncludes Marine Hull (including pleasure craft) and Marine Cargo (including sea and inland transit insurance).\n\n(VII). Aviation\n\nAviation (including aircraft hull and aircraft liability).\n\n(VIII). Mortgage\n\nInsurance against losses arising from the failure of debtors to meet financial obligations to creditors or under which payment of debts is guaranteed. It includes lease guarantee.\n\n(IX). Consumer Credit (CCI)\n\nInsurance to protect a consumer's ability to meet the loan repayments on personal loans and credit card finance in the event of death or loss of income due to injury, illness or unemployment.\n\n(X). Other Accident\n\nIncludes the following types of insurance:\n\n-   Miscellaneous accident (involving cash in transit, theft, loss of money);\n-   All risks (baggage, sporting equipment, guns);\n-   Engineering when not part of ISR or Fire policy;\n-   Plate glass when not part of packaged policy (e.g. houseowners /householders)\n-   Guarantee (Insurance Bonds);\n-   Live Stock;\n-   Pluvius; and,\n-   Sickness and Accident which by the terms of the policy provides benefits for no more than three years.\n\n(XI). Other\n\nAll other insurance business not specifically mentioned elsewhere. It includes, for example:\n\n-   Trade Credit;\n-   Extended Warranty (where the insurer extends a manufacturer's or seller’s normal warranty);\n-   Kidnap and Ransom; and\n-   Contingency.\n\n(XII). Compulsory Third Party Motor Vehicle (CTP)\n\nThis class consists only of CTP business.\n\n(XIII). Public and Product Liability\n\n-   Public Liability covers legal liability to the public in respect of bodily injury or property damage arising out of the operation of the insured's business. Product Liability includes policies that provide for compensation for loss and or injury caused by, or as a result of, the use of goods and also environmental clean-up caused by pollution spills where not covered by Fire and ISR policies.\n-   Also will include builders warranty insurance.\n-   Includes public liability attaching to houseowners/householders policies.\n\n(XIV). Professional Indemnity (PI)\n\nPI covers professionals against liability incurred as a result of errors and omissions in performing professional services which has resulted in economic losses suffered by third parties.\n\nIncludes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.\n\n(XV). Employers' Liability (EL)\n\nIncludes:\n\n-   Workers' compensation;\n-   Seamen's compensation; and\n-   Domestic workers compensation.\n\nInwards reinsurance\n\nInclude the aggregate value of all inwards reinsurance business in this line item.","sortOrder":61},{"sectionNumber":"Claims Expense — Each State and Territor","sectionType":"subdivision","heading":"Claims Expense — Each State and Territory","content":"#### Claims Expense – Each State and Territory\n\nReport claims expense inside Australia according to where the risk is located.\n\nClaims expense for the purpose of this form is to be interpreted as having the same meaning as claims expense calculated and reported in GRF 310.2 Claims Expense and Reinsurance Recoveries.\n\nWhere the insurer does not have insurance business outside of Australia (i.e. claims liabilities), the following should apply:\n\n-   the total claims expense amounts for all direct classes of business on this form should agree with the aggregate amount of claims expense recorded for ‘Direct Business’ in GRF 310.2 Claims Expense and Reinsurance Recoveries; and\n-   the total claims expense amounts for ‘Inwards reinsurance’ on this form should agree with the aggregate amount of claims expense recorded for reinsurance in GRF 310.2 Claims Expense and Reinsurance Recoveries.","sortOrder":62},{"sectionNumber":"Reporting Form GRF 440.0","sectionType":"part","heading":"Reporting Form GRF 440.0","content":"## Reporting Form GRF 440.0\n\n## Claims Development Table\n\n### Instruction Guide\n\n### Introduction\n\nThe purpose of GRF 440.0 – Claims Development Table is to capture information on the claims development profile of individual insurance companies.\n\n## This instruction guide provides general directions for completion of GRF 440.0 Claims Development Table.\n\nDirect insurance business (excepting mortgage insurance) must be completed based on accident year. Reinsurance and mortgage insurance business must be completed on an underwriting year basis. In either case, the year will be based on the financial year of the insurer.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited. APRA will instead rely on the reconciliation to the APRA net provisions and the Financial Information Declaration signed by the chief executive officer (CEO) (by whatever name called, or for a foreign insurer, the local equivalent) and the chief financial officer (CFO) (by whatever name called, or for a foreign insurer, the local equivalent).\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n1.  Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);\n2.  Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and\n3.  Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[7\\]](#_ftn7) outstanding at the reporting date must be translated at the spot rate[\\[8\\]](#_ftn8) at the reporting date.\n2.  Foreign currency non-monetary items[\\[9\\]](#_ftn9) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the reporting period as set out in Reporting Standard GRS 440.0 Claims Development Table.\n\n###   \nSpecific instructions\n\nDirect insurance business must be completed based on accident year. Reinsurance business must be completed on an underwriting year basis. These terms are explained below.\n\nAccident Year\n\nThis refers to the financial year of the insurer that the losses/claims are incurred. For example, the 2007 accident year for an insurer with a balance date of 30 June will relate to claims with dates of loss (regardless of notification date) occurring between 1 July 2006 and 30 June 2007. The form is to be completed for each of the following years:\n\n-   Current Accident Year;\n-   Accident Year, 1 Year Previous;\n-   Accident Year, 2 Years Previous;\n-   Accident Year, 3 Years Previous;\n-   Accident Year, 4 Years Previous;\n-   Accident Year, 5 Years Previous;\n-   Accident Year, 6 Years Previous;\n-   Accident Year, 7 Years Previous;\n-   Accident Year, 8 Years Previous;\n-   Accident Year, 9 Years Previous;\n-   accident year, 10 years previous; and\n-   Accident Year, More than 10 Years Previous.\n\nUnderwriting Year\n\nUnderwriting year refers to the financial year of the insurer in which the policy incepts, regardless of when the premiums and claims are actually reported, booked or paid. For example, the 2005 underwriting year for an insurer with a 30 June balance date includes premiums and claims (both paid and outstanding) attaching to policies incepting in the period 1 July 2005 to 30 June 2006. For an insurer with a 31 December balance date, the 2005 underwriting year includes premiums and claims (both paid and outstanding) attaching to policies incepting in the period 1 January 2005 to 31 December 2005. The form is to be completed for each of the following years:\n\n-   Current Underwriting Year;\n-   Underwriting Year, 1 Year Previous;\n-   Underwriting Year, 2 Years Previous;\n-   Underwriting Year, 3 Years Previous;\n-   Underwriting Year, 4 Years Previous;\n-   Underwriting Year, 5 Years Previous;\n-   Underwriting Year, 6 Years Previous;\n-   Underwriting Year, 7 Years Previous;\n-   Underwriting Year, 8 Years Previous;\n-   Underwriting Year, 9 Years Previous;\n-   Underwriting Year, 10 Years Previous; and\n-   Underwriting Year, More than 10 Years Previous.\n\nEach of the years in this form are complete years reported on a financial year to date basis as at the last business day of the financial year of the insurer. No adjustments are required to be made to prior year reported information.\n\nWhere possible, insurers are requested to complete the entire series of years.\n\nClasses of Insurance Business\n\n1.  Direct Business\n\nThe classes of insurance business are as follows:\n\n(I). Houseowners/Householders (H & H)\n\nThis class covers the common H & H policies inclusive of:\n\n-   Contents;\n-   Personal property;\n-   Arson; and\n-   Burglary.\n\nPublic liability normally attaching to these products are to be separated and included in Public and Product Liability class of business – item (XIII).\n\n(II). Commercial Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) other than insurance covering vehicles defined below under Domestic Motor Vehicle. It includes long and medium haul trucks, cranes and special vehicles and policies covering fleets.\n\n(III). Domestic Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) covering private use motor vehicles including utilities and lorries, motor cycles, private caravans, box and boat trailers and other vehicles not normally covered by business or commercial policies.\n\n(IV). Travel\n\nInsurance against losses associated with travel including loss of baggage and personal effects, losses on flight cancellations and overseas medical costs.\n\n(V). Fire and Industrial Special Risks (ISR)\n\n##### Fire\n\nIncludes all policies normally classified as 'Fire' and includes:\n\n-   sprinkler leakage;\n-   subsidence;\n-   windstorm;\n-   hailstone;\n-   crop;\n-   arson; and\n-   loss of profits and any extraneous risk normally covered under fire policies, e.g. flood.\n\n##### ISR\n\nStandard policy wordings exist for this type of policy. All policies which contain such standard wordings or where the wording is substantially similar are to be classified as ISR.\n\n(VI). Marine\n\nIncludes Marine Hull (including pleasure craft) and Marine Cargo (including sea and inland transit insurance).\n\n(VII). Aviation\n\nAviation (including aircraft hull and aircraft liability).\n\n(VIII). Mortgage\n\nInsurance against losses arising from the failure of debtors to meet financial obligations to creditors or under which payment of debts is guaranteed. It includes lease guarantee.\n\n(IX). Consumer Credit (CCI)\n\nInsurance to protect a consumer's ability to meet the loan repayments on personal loans and credit card finance in the event of death or loss of income due to injury, illness or unemployment.\n\n(X). Other Accident\n\nIncludes the following types of insurance:\n\n-   Miscellaneous accident (involving cash in transit, theft, loss of money);\n-   All risks (baggage, sporting equipment, guns);\n-   Engineering when not part of ISR or Fire policy;\n-   Plate glass when not part of packaged policy (e.g. houseowners /householders)\n-   Guarantee (Insurance Bonds);\n-   Live Stock;\n-   Pluvius; and\n-   Sickness and Accident which by the terms of the policy provides benefits for no more than three years.\n\n(XI). Other\n\nAll other insurance business not specifically mentioned elsewhere. It includes, for example:\n\n-   Trade Credit;\n-   Extended Warranty (where the insurer extends a manufacturer's or seller’s normal warranty);\n-   Kidnap and Ransom; and\n-   Contingency.\n\n(XII). Compulsory Third Party Motor Vehicle (CTP)\n\nThis class consists only of CTP business.\n\n(XIII). Public and Product Liability\n\n-   Public Liability covers legal liability to the public in respect of bodily injury or property damage arising out of the operation of the insured's business. Product Liability includes policies that provide for compensation for loss and or injury caused by, or as a result of, the use of goods and also environmental clean-up caused by pollution spills where not covered by Fire and ISR policies.\n-   Also will include builders warranty insurance.\n-   Includes public liability attaching to houseowners/householders policies.\n\n(XIV). Professional Indemnity (PI)\n\nPI covers professionals against liability incurred as a result of errors and omissions in performing professional services which has resulted in economic losses suffered by third parties.\n\nIncludes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.\n\n(XV). Employers' Liability (EL)\n\nIncludes:\n\n-   Workers' compensation;\n-   Seamen's compensation; and\n-   Domestic workers compensation.\n\n2. Reinsurance Business\n\nThe classes of business for companies that provide reinsurance are as follows:\n\nTreaty Proportional: This refers to all forms of quota share and surplus reinsurance written on a treaty reinsurance arrangement where the reinsurer is bound to accept all business ceded by the reinsured subject to the terms and conditions of the pre-agreed treaty wording, and shares in the same proportion of premium and losses of the reinsured.\n\nTreaty Excess of Loss: This refers to all reinsurance arrangements where the reinsurer is bound to accept all business ceded by the reinsured and the reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.\n\nFacultative Proportional: This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis and the reinsurer shares in the same proportion of premium and losses of the reinsured.\n\nFacultative Excess of Loss: This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis. The reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.\n\nReinsurance non-split: This line item classification disclosed under Reinsurance class of business is to be used where it is not possible for the insurer to separately split out all the classes of reinsurance businesses.\n\nWhere an insurer writes inwards reinsurance which spans multiple classes and the insurer cannot readily split the contract between classes, the contract must be allocated using an appropriate method, including the following methods:\n\n(a) allocate the contract to the category which represents the greatest exposure; or\n\n(b) allocate the contract to the category representing the greatest premium income.\n\nAn insurer that underwrites inwards reinsurance is free to choose which of the above methods it uses, or may use another appropriate method, provided the same method is used for all contracts and all subsequent periods.\n\nBelow is an explanation of the terms in the form. Note that any reference to gross means net of non-reinsurance recoveries and gross of reinsurance recoveries. A reference to ‘net’ means net of both reinsurance and non-reinsurance recoveries. In some instances the insurer’s reinsurance arrangements will be complicated (for example multi-year reinsurance treaties, aggregate deductibles, reinsurance treaties across multiple lines of business etc.) and as a result insurers may need to apportion the reinsurance premiums and recoveries. Material apportionments must be either prepared by or reviewed by the insurer’s Appointed Actuary.\n\nExplanation of terms in form\n\nFields that are to be completed on a cumulative basis:\n\n-   Gross and net earned premium for accident year\n-   Gross and net written premium for underwriting year\n-   Number of claims reported\n-   Gross and net claim payments\n\nFields that are NOT to be completed on a cumulative basis:\n\n-   Number of claims outstanding\n-   Gross and net case estimates\n-   Gross and net IBNR/IBNER\n\nGross and net premium\n\nEarned premium is to be reported both gross and net of reinsurance expense for each accident year. Gross and net premium earned is to be reported in this form in accordance with AASB 1023 ‘General Insurance Contracts’. Written premium is to be reported both gross and net of reinsurance expense for each underwriting year.\n\nThe amount reported for ‘Current Accident / Underwriting Year’ will generally be the same reported for the ‘Accident / Underwriting Year – 1 Year Previous’ in the following financial year. For example:\n\n| Financial Year Ended | Current Accident/Underwriting Year | Accident/Underwriting Year – 1 Year Previous | Accident/Underwriting Year – 2 Years Previous |\n| -------------------- | ---------------------------------- | -------------------------------------------- | --------------------------------------------- |\n| 31 December 2001     | 4,000                              | 2,000                                        |                                               |\n| 31 December 2002     | 5,000                              | 4,000                                        | 2,000                                         |\n\nHowever, it is acknowledged that there may be some premium adjustments made after the insurer reports the ‘Current Accident/Underwriting Year’ data and as a result there may be some movement in the premium figures reported at later dates.\n\nPremium revenue is to take into account the following:\n\n-   do not include amounts collected on behalf of third parties i.e. government stamp duty and taxes;\n-   levies charged to customers are to be included such as fire service levies;\n-   deduct returned premiums and rebates;\n-   premiums are to be brought to account from the attachment date;\n-   for installment premium policies, the amount of the annualised premium is to be reported; and\n-   premium revenue must be shown both gross and net of reinsurance expense.\n\nNumber of claims reported\n\nInclude the cumulative total gross number of claims reported for each class of business by accident/underwriting year at the end of the reporting period. This column is not applicable for proportional reinsurance business, as this information is generally not known.\n\nNumber of claims outstanding\n\nInclude the actuarial gross central estimate of the number of claims outstanding for each class of business by accident/underwriting year as at the end of the reporting period. This column may not be applicable for classes valued using actuarial techniques which do not estimate numbers of claims outstanding.\n\nGross and net claim payments\n\nReport the amount of gross and net claim payments attributable to each accident/underwriting year on a cumulative basis, for classes of direct and reinsurance business. Gross claim payments must be reported net of non-reinsurance recoveries. Net claim payments must be reported net of reinsurance and non-reinsurance recoveries. In both cases include recoveries that have been received or are expected to be received only in relation to claims already paid.\n\nGross and net case estimate\n\nGross and net case estimates are to be disclosed by type of business. This relates to the gross and net case estimates included in the Outstanding Claims Provision as at the end of the development year for the specified accident/underwriting year.\n\nFor the purposes of this form, case estimates must be reported:\n\n-   as the balance outstanding at the end of the year;\n-   net of non-reinsurance recoveries (for gross case estimates);\n-   net of reinsurance and non-reinsurance recoveries (for net case estimates); and\n-   excluding IBNR/IBNER, claims handling expenses and risk margins.\n\nGross and net IBNR/IBNER\n\nGross and net IBNR/IBNER is to be disclosed by type of business. This relates to the IBNR/IBNER included in the Outstanding Claims Provision as at the end of the development year for the specified accident/underwriting year.\n\nFor the purposes of this form, the IBNR/IBNER must be reported:\n\n-   as the balance outstanding at the end of the year;\n-   inflated and undiscounted;\n-   net of non-reinsurance recoveries (for gross IBNR/IBNER);\n-   net of reinsurance and non-reinsurance recoveries (for net IBNR/IBNER);\n-   excluding claims handling expenses; and\n-   as the central estimate only; that is do not include a risk margin.\n\nTotal gross and net ultimate cost (inflated & undiscounted)\n\nThis is automatically calculated by the form and represents the sum of (respectively for gross and net):\n\n-   claim payments\n-   case estimates; and\n-   IBNR/IBNER.\n\nGross and net outstanding claims (inflated and undiscounted)\n\nThis is automatically calculated by the form (respectively for gross and net) as:\n\n-   Total ultimate cost (inflated & undiscounted)\n\nLess:\n\n-   Claim payments\n\nDiscounting on net outstanding claims\n\nInclude the impact of discounting the net actuarial central estimate of outstanding claims (excluding claims handling expenses). This data is only required as an aggregate total for direct business and reinsurance business.\n\nClaims handling expenses on net outstanding claims\n\nInclude the claims handling expense allowance in the net actuarial central estimate of outstanding claims. This data is only required as an aggregate total for direct business and reinsurance business.\n\nAPRA Risk Margin on net outstanding claims\n\nInclude the APRA risk margins (75% probability of sufficiency including diversification benefits) included in the APRA net outstanding claims provision. This data is only required as an aggregate total for direct business and reinsurance business.\n\nAPRA net OCP\n\nThis column is automatically calculated as:\n\n-   Net outstanding claims (inflated & undiscounted)\n\nLess:\n\n-   Discount on net outstanding claims\n\nPlus:\n\n-   Claims handling expenses on net outstanding claims\n\nPlus:\n\n-   APRA Risk Margin on net outstanding claims","sortOrder":63},{"sectionNumber":"Claims Development Table","sectionType":"part","heading":"Claims Development Table","content":"## Reporting Form GRF 440.0\n\n## Claims Development Table\n\n### Instruction Guide\n\n### Introduction\n\nThe purpose of GRF 440.0 – Claims Development Table is to capture information on the claims development profile of individual insurance companies.\n\n## This instruction guide provides general directions for completion of GRF 440.0 Claims Development Table.\n\nDirect insurance business (excepting mortgage insurance) must be completed based on accident year. Reinsurance and mortgage insurance business must be completed on an underwriting year basis. In either case, the year will be based on the financial year of the insurer.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited. APRA will instead rely on the reconciliation to the APRA net provisions and the Financial Information Declaration signed by the chief executive officer (CEO) (by whatever name called, or for a foreign insurer, the local equivalent) and the chief financial officer (CFO) (by whatever name called, or for a foreign insurer, the local equivalent).\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n1.  Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);\n2.  Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and\n3.  Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[7\\]](#_ftn7) outstanding at the reporting date must be translated at the spot rate[\\[8\\]](#_ftn8) at the reporting date.\n2.  Foreign currency non-monetary items[\\[9\\]](#_ftn9) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the reporting period as set out in Reporting Standard GRS 440.0 Claims Development Table.\n\n###   \nSpecific instructions\n\nDirect insurance business must be completed based on accident year. Reinsurance business must be completed on an underwriting year basis. These terms are explained below.\n\nAccident Year\n\nThis refers to the financial year of the insurer that the losses/claims are incurred. For example, the 2007 accident year for an insurer with a balance date of 30 June will relate to claims with dates of loss (regardless of notification date) occurring between 1 July 2006 and 30 June 2007. The form is to be completed for each of the following years:\n\n-   Current Accident Year;\n-   Accident Year, 1 Year Previous;\n-   Accident Year, 2 Years Previous;\n-   Accident Year, 3 Years Previous;\n-   Accident Year, 4 Years Previous;\n-   Accident Year, 5 Years Previous;\n-   Accident Year, 6 Years Previous;\n-   Accident Year, 7 Years Previous;\n-   Accident Year, 8 Years Previous;\n-   Accident Year, 9 Years Previous;\n-   accident year, 10 years previous; and\n-   Accident Year, More than 10 Years Previous.\n\nUnderwriting Year\n\nUnderwriting year refers to the financial year of the insurer in which the policy incepts, regardless of when the premiums and claims are actually reported, booked or paid. For example, the 2005 underwriting year for an insurer with a 30 June balance date includes premiums and claims (both paid and outstanding) attaching to policies incepting in the period 1 July 2005 to 30 June 2006. For an insurer with a 31 December balance date, the 2005 underwriting year includes premiums and claims (both paid and outstanding) attaching to policies incepting in the period 1 January 2005 to 31 December 2005. The form is to be completed for each of the following years:\n\n-   Current Underwriting Year;\n-   Underwriting Year, 1 Year Previous;\n-   Underwriting Year, 2 Years Previous;\n-   Underwriting Year, 3 Years Previous;\n-   Underwriting Year, 4 Years Previous;\n-   Underwriting Year, 5 Years Previous;\n-   Underwriting Year, 6 Years Previous;\n-   Underwriting Year, 7 Years Previous;\n-   Underwriting Year, 8 Years Previous;\n-   Underwriting Year, 9 Years Previous;\n-   Underwriting Year, 10 Years Previous; and\n-   Underwriting Year, More than 10 Years Previous.\n\nEach of the years in this form are complete years reported on a financial year to date basis as at the last business day of the financial year of the insurer. No adjustments are required to be made to prior year reported information.\n\nWhere possible, insurers are requested to complete the entire series of years.\n\nClasses of Insurance Business\n\n1.  Direct Business\n\nThe classes of insurance business are as follows:\n\n(I). Houseowners/Householders (H & H)\n\nThis class covers the common H & H policies inclusive of:\n\n-   Contents;\n-   Personal property;\n-   Arson; and\n-   Burglary.\n\nPublic liability normally attaching to these products are to be separated and included in Public and Product Liability class of business – item (XIII).\n\n(II). Commercial Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) other than insurance covering vehicles defined below under Domestic Motor Vehicle. It includes long and medium haul trucks, cranes and special vehicles and policies covering fleets.\n\n(III). Domestic Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) covering private use motor vehicles including utilities and lorries, motor cycles, private caravans, box and boat trailers and other vehicles not normally covered by business or commercial policies.\n\n(IV). Travel\n\nInsurance against losses associated with travel including loss of baggage and personal effects, losses on flight cancellations and overseas medical costs.\n\n(V). Fire and Industrial Special Risks (ISR)\n\n##### Fire\n\nIncludes all policies normally classified as 'Fire' and includes:\n\n-   sprinkler leakage;\n-   subsidence;\n-   windstorm;\n-   hailstone;\n-   crop;\n-   arson; and\n-   loss of profits and any extraneous risk normally covered under fire policies, e.g. flood.\n\n##### ISR\n\nStandard policy wordings exist for this type of policy. All policies which contain such standard wordings or where the wording is substantially similar are to be classified as ISR.\n\n(VI). Marine\n\nIncludes Marine Hull (including pleasure craft) and Marine Cargo (including sea and inland transit insurance).\n\n(VII). Aviation\n\nAviation (including aircraft hull and aircraft liability).\n\n(VIII). Mortgage\n\nInsurance against losses arising from the failure of debtors to meet financial obligations to creditors or under which payment of debts is guaranteed. It includes lease guarantee.\n\n(IX). Consumer Credit (CCI)\n\nInsurance to protect a consumer's ability to meet the loan repayments on personal loans and credit card finance in the event of death or loss of income due to injury, illness or unemployment.\n\n(X). Other Accident\n\nIncludes the following types of insurance:\n\n-   Miscellaneous accident (involving cash in transit, theft, loss of money);\n-   All risks (baggage, sporting equipment, guns);\n-   Engineering when not part of ISR or Fire policy;\n-   Plate glass when not part of packaged policy (e.g. houseowners /householders)\n-   Guarantee (Insurance Bonds);\n-   Live Stock;\n-   Pluvius; and\n-   Sickness and Accident which by the terms of the policy provides benefits for no more than three years.\n\n(XI). Other\n\nAll other insurance business not specifically mentioned elsewhere. It includes, for example:\n\n-   Trade Credit;\n-   Extended Warranty (where the insurer extends a manufacturer's or seller’s normal warranty);\n-   Kidnap and Ransom; and\n-   Contingency.\n\n(XII). Compulsory Third Party Motor Vehicle (CTP)\n\nThis class consists only of CTP business.\n\n(XIII). Public and Product Liability\n\n-   Public Liability covers legal liability to the public in respect of bodily injury or property damage arising out of the operation of the insured's business. Product Liability includes policies that provide for compensation for loss and or injury caused by, or as a result of, the use of goods and also environmental clean-up caused by pollution spills where not covered by Fire and ISR policies.\n-   Also will include builders warranty insurance.\n-   Includes public liability attaching to houseowners/householders policies.\n\n(XIV). Professional Indemnity (PI)\n\nPI covers professionals against liability incurred as a result of errors and omissions in performing professional services which has resulted in economic losses suffered by third parties.\n\nIncludes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.\n\n(XV). Employers' Liability (EL)\n\nIncludes:\n\n-   Workers' compensation;\n-   Seamen's compensation; and\n-   Domestic workers compensation.\n\n2. Reinsurance Business\n\nThe classes of business for companies that provide reinsurance are as follows:\n\nTreaty Proportional: This refers to all forms of quota share and surplus reinsurance written on a treaty reinsurance arrangement where the reinsurer is bound to accept all business ceded by the reinsured subject to the terms and conditions of the pre-agreed treaty wording, and shares in the same proportion of premium and losses of the reinsured.\n\nTreaty Excess of Loss: This refers to all reinsurance arrangements where the reinsurer is bound to accept all business ceded by the reinsured and the reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.\n\nFacultative Proportional: This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis and the reinsurer shares in the same proportion of premium and losses of the reinsured.\n\nFacultative Excess of Loss: This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis. The reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.\n\nReinsurance non-split: This line item classification disclosed under Reinsurance class of business is to be used where it is not possible for the insurer to separately split out all the classes of reinsurance businesses.\n\nWhere an insurer writes inwards reinsurance which spans multiple classes and the insurer cannot readily split the contract between classes, the contract must be allocated using an appropriate method, including the following methods:\n\n(a) allocate the contract to the category which represents the greatest exposure; or\n\n(b) allocate the contract to the category representing the greatest premium income.\n\nAn insurer that underwrites inwards reinsurance is free to choose which of the above methods it uses, or may use another appropriate method, provided the same method is used for all contracts and all subsequent periods.\n\nBelow is an explanation of the terms in the form. Note that any reference to gross means net of non-reinsurance recoveries and gross of reinsurance recoveries. A reference to ‘net’ means net of both reinsurance and non-reinsurance recoveries. In some instances the insurer’s reinsurance arrangements will be complicated (for example multi-year reinsurance treaties, aggregate deductibles, reinsurance treaties across multiple lines of business etc.) and as a result insurers may need to apportion the reinsurance premiums and recoveries. Material apportionments must be either prepared by or reviewed by the insurer’s Appointed Actuary.\n\nExplanation of terms in form\n\nFields that are to be completed on a cumulative basis:\n\n-   Gross and net earned premium for accident year\n-   Gross and net written premium for underwriting year\n-   Number of claims reported\n-   Gross and net claim payments\n\nFields that are NOT to be completed on a cumulative basis:\n\n-   Number of claims outstanding\n-   Gross and net case estimates\n-   Gross and net IBNR/IBNER\n\nGross and net premium\n\nEarned premium is to be reported both gross and net of reinsurance expense for each accident year. Gross and net premium earned is to be reported in this form in accordance with AASB 1023 ‘General Insurance Contracts’. Written premium is to be reported both gross and net of reinsurance expense for each underwriting year.\n\nThe amount reported for ‘Current Accident / Underwriting Year’ will generally be the same reported for the ‘Accident / Underwriting Year – 1 Year Previous’ in the following financial year. For example:\n\n| Financial Year Ended | Current Accident/Underwriting Year | Accident/Underwriting Year – 1 Year Previous | Accident/Underwriting Year – 2 Years Previous |\n| -------------------- | ---------------------------------- | -------------------------------------------- | --------------------------------------------- |\n| 31 December 2001     | 4,000                              | 2,000                                        |                                               |\n| 31 December 2002     | 5,000                              | 4,000                                        | 2,000                                         |\n\nHowever, it is acknowledged that there may be some premium adjustments made after the insurer reports the ‘Current Accident/Underwriting Year’ data and as a result there may be some movement in the premium figures reported at later dates.\n\nPremium revenue is to take into account the following:\n\n-   do not include amounts collected on behalf of third parties i.e. government stamp duty and taxes;\n-   levies charged to customers are to be included such as fire service levies;\n-   deduct returned premiums and rebates;\n-   premiums are to be brought to account from the attachment date;\n-   for installment premium policies, the amount of the annualised premium is to be reported; and\n-   premium revenue must be shown both gross and net of reinsurance expense.\n\nNumber of claims reported\n\nInclude the cumulative total gross number of claims reported for each class of business by accident/underwriting year at the end of the reporting period. This column is not applicable for proportional reinsurance business, as this information is generally not known.\n\nNumber of claims outstanding\n\nInclude the actuarial gross central estimate of the number of claims outstanding for each class of business by accident/underwriting year as at the end of the reporting period. This column may not be applicable for classes valued using actuarial techniques which do not estimate numbers of claims outstanding.\n\nGross and net claim payments\n\nReport the amount of gross and net claim payments attributable to each accident/underwriting year on a cumulative basis, for classes of direct and reinsurance business. Gross claim payments must be reported net of non-reinsurance recoveries. Net claim payments must be reported net of reinsurance and non-reinsurance recoveries. In both cases include recoveries that have been received or are expected to be received only in relation to claims already paid.\n\nGross and net case estimate\n\nGross and net case estimates are to be disclosed by type of business. This relates to the gross and net case estimates included in the Outstanding Claims Provision as at the end of the development year for the specified accident/underwriting year.\n\nFor the purposes of this form, case estimates must be reported:\n\n-   as the balance outstanding at the end of the year;\n-   net of non-reinsurance recoveries (for gross case estimates);\n-   net of reinsurance and non-reinsurance recoveries (for net case estimates); and\n-   excluding IBNR/IBNER, claims handling expenses and risk margins.\n\nGross and net IBNR/IBNER\n\nGross and net IBNR/IBNER is to be disclosed by type of business. This relates to the IBNR/IBNER included in the Outstanding Claims Provision as at the end of the development year for the specified accident/underwriting year.\n\nFor the purposes of this form, the IBNR/IBNER must be reported:\n\n-   as the balance outstanding at the end of the year;\n-   inflated and undiscounted;\n-   net of non-reinsurance recoveries (for gross IBNR/IBNER);\n-   net of reinsurance and non-reinsurance recoveries (for net IBNR/IBNER);\n-   excluding claims handling expenses; and\n-   as the central estimate only; that is do not include a risk margin.\n\nTotal gross and net ultimate cost (inflated & undiscounted)\n\nThis is automatically calculated by the form and represents the sum of (respectively for gross and net):\n\n-   claim payments\n-   case estimates; and\n-   IBNR/IBNER.\n\nGross and net outstanding claims (inflated and undiscounted)\n\nThis is automatically calculated by the form (respectively for gross and net) as:\n\n-   Total ultimate cost (inflated & undiscounted)\n\nLess:\n\n-   Claim payments\n\nDiscounting on net outstanding claims\n\nInclude the impact of discounting the net actuarial central estimate of outstanding claims (excluding claims handling expenses). This data is only required as an aggregate total for direct business and reinsurance business.\n\nClaims handling expenses on net outstanding claims\n\nInclude the claims handling expense allowance in the net actuarial central estimate of outstanding claims. This data is only required as an aggregate total for direct business and reinsurance business.\n\nAPRA Risk Margin on net outstanding claims\n\nInclude the APRA risk margins (75% probability of sufficiency including diversification benefits) included in the APRA net outstanding claims provision. This data is only required as an aggregate total for direct business and reinsurance business.\n\nAPRA net OCP\n\nThis column is automatically calculated as:\n\n-   Net outstanding claims (inflated & undiscounted)\n\nLess:\n\n-   Discount on net outstanding claims\n\nPlus:\n\n-   Claims handling expenses on net outstanding claims\n\nPlus:\n\n-   APRA Risk Margin on net outstanding claims","sortOrder":64},{"sectionNumber":"This instruction guide provides general ","sectionType":"part","heading":"This instruction guide provides general directions for completion of GRF 440.0 Claims Development Table.","content":"## This instruction guide provides general directions for completion of GRF 440.0 Claims Development Table.\n\nDirect insurance business (excepting mortgage insurance) must be completed based on accident year. Reinsurance and mortgage insurance business must be completed on an underwriting year basis. In either case, the year will be based on the financial year of the insurer.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited. APRA will instead rely on the reconciliation to the APRA net provisions and the Financial Information Declaration signed by the chief executive officer (CEO) (by whatever name called, or for a foreign insurer, the local equivalent) and the chief financial officer (CFO) (by whatever name called, or for a foreign insurer, the local equivalent).\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n1.  Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);\n2.  Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and\n3.  Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[7\\]](#_ftn7) outstanding at the reporting date must be translated at the spot rate[\\[8\\]](#_ftn8) at the reporting date.\n2.  Foreign currency non-monetary items[\\[9\\]](#_ftn9) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.","sortOrder":67},{"sectionNumber":"Reporting Form GRF 450.0","sectionType":"part","heading":"Reporting Form GRF 450.0","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":72},{"sectionNumber":"Interest in Controlled Entities and Join","sectionType":"part","heading":"Interest in Controlled Entities and Joint Ventures","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":73},{"sectionNumber":"For the purposes of this form, ‘entity’ ","sectionType":"section","heading":"For the purposes of this form, ‘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.","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":78},{"sectionNumber":"For the purposes of this form, ‘controll","sectionType":"section","heading":"For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":79},{"sectionNumber":"(1) Name of Controlled Entity","sectionType":"section","heading":"(1) Name of Controlled Entity","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":80},{"sectionNumber":"Report the full name of the controlled e","sectionType":"section","heading":"Report the full name of the controlled entity.","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":81},{"sectionNumber":"(2) Description / Nature of Business","sectionType":"section","heading":"(2) Description / Nature of Business","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":82},{"sectionNumber":"In the space provided, detail a brief de","sectionType":"section","heading":"In the space provided, detail a brief description of the main business conducted by the entity.","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":83},{"sectionNumber":"(3) APRA Regulated General Insurer","sectionType":"section","heading":"(3) APRA Regulated General Insurer","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":84},{"sectionNumber":"If the controlled entity is an APRA regu","sectionType":"section","heading":"If the controlled entity is an APRA regulated general insurance entity input ‘yes’.","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":85},{"sectionNumber":"(4) Country of Incorporation","sectionType":"section","heading":"(4) Country of Incorporation","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":87},{"sectionNumber":"This is the country in which the entity ","sectionType":"section","heading":"This is the country in which the entity is incorporated.","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":88},{"sectionNumber":"(5) Ownership Percentage %","sectionType":"section","heading":"(5) Ownership Percentage %","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":89},{"sectionNumber":"Disclose the percentage of the reporting","sectionType":"section","heading":"Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":90},{"sectionNumber":"(6) Fair Value of Investment in Controll","sectionType":"section","heading":"(6) Fair Value of Investment in Controlled Entity","content":"###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:","sortOrder":91},{"sectionNumber":" The quoted market price (i.e. bid or a","sectionType":"section","heading":" The quoted market price (i.e. bid or ask price) in an active and liquid market; or","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":92},{"sectionNumber":" When there is infrequent activity in a","sectionType":"section","heading":" 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 — a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":93},{"sectionNumber":"(7) Goodwill net of impairment or Intang","sectionType":"section","heading":"(7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":94},{"sectionNumber":"Disclose that component value of the rep","sectionType":"section","heading":"Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":95},{"sectionNumber":"(8) Fair Value of Controlled Entity","sectionType":"section","heading":"(8) Fair Value of Controlled Entity","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":96},{"sectionNumber":"Disclose the fair value of the controlle","sectionType":"section","heading":"Disclose the fair value of the controlled entity. Fair value is 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:","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":97},{"sectionNumber":"(9) Country (for which Gross Assets & Li","sectionType":"section","heading":"(9) Country (for which Gross Assets & Liabilities are reported)","content":"###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.","sortOrder":100},{"sectionNumber":"(10) & (11) Disclosure of Gross Assets a","sectionType":"section","heading":"(10) & (11) Disclosure of Gross Assets and Gross Liabilities","content":"###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.","sortOrder":101},{"sectionNumber":"Part B: Interest in Joint Venture Operat","sectionType":"section","heading":"Part B: Interest in Joint Venture Operations / Entities","content":"###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.","sortOrder":102},{"sectionNumber":"(1) Name of Joint Venture","sectionType":"section","heading":"(1) Name of Joint Venture","content":"###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.","sortOrder":103},{"sectionNumber":"(2) Description / Nature of Main Busines","sectionType":"section","heading":"(2) Description / Nature of Main Business","content":"###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.","sortOrder":104},{"sectionNumber":"This is the country in which the joint v","sectionType":"section","heading":"This is the country in which the joint venture is incorporated.","content":"## Reporting Form GRF 450.0\n\n## Interest in Controlled Entities and Joint Ventures\n\n### Instruction Guide\n\n### Introduction\n\nGRF 450.0 – Interest in Controlled Entities and Joint Ventures captures information on the reporting insurer’s interest in controlled entities, joint venture entities and joint venture operations.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n4. Authorised insurance entities (including mutuals); and\n\n5. Authorised reinsurance entities.\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with 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).\n\nThe general requirements of AASB 121 for translation are:\n\n1.  Foreign currency monetary items[\\[10\\]](#_ftn10) outstanding at the reporting date must be translated at the spot rate[\\[11\\]](#_ftn11) at the reporting date.\n2.  Foreign currency non-monetary items[\\[12\\]](#_ftn12) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  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.\n\nTransactions 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.\n\nFor 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.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange 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 recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n-   Translation of financial reports should otherwise follow the requirements in AASB 121.\n\n## Basis of preparation\n\nInsurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 450.0 Interest in Controlled Entities and Joint Ventures.\n\n  \nSpecific instructions\n\nThis form is separated into the following parts:\n\nPart A: Interest in Controlled Entities\n\nPart B: Interest in Joint Venture Operations / Entities\n\nThe requirements for each of these are detailed below:\n\nPart A: Interest in Controlled Entities\n\n###### For the purposes of this form, ‘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.\n\n###### For the purposes of this form, ‘controlled entities’ is to be interpreted as defined in AASB 127 ‘Consolidated and Separate Financial Statements’ (AASB 127). AASB 127 defines a ‘subsidiary’ as meaning an entity, including an unincorporated entity, which is controlled by a parent entity. A parent is an entity that has one or more subsidiaries.\n\n###### (1) Name of Controlled Entity\n\n###### Report the full name of the controlled entity.\n\n###### (2) Description / Nature of Business\n\n###### In the space provided, detail a brief description of the main business conducted by the entity.\n\n###### (3) APRA Regulated General Insurer\n\n###### If the controlled entity is an APRA regulated general insurance entity input ‘yes’.\n\n###### If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the entity is incorporated.\n\n###### (5) Ownership Percentage %\n\n###### Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.\n\n###### (6) Fair Value of Investment in Controlled Entity\n\nDisclose the fair value of the investment of the reporting insurer in the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Controlled Entity\n\n###### Disclose that component value of the reporting insurer’s investment in the controlled entity that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Controlled Entity\n\n###### Disclose the fair value of the controlled entity. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Country (for which Gross Assets & Liabilities are reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n###### (10) & (11) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.\n\n###### Part B: Interest in Joint Venture Operations / Entities\n\nFor the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 131 ‘Interests in Joint Ventures’ (AASB 131). An extract of the definition in AASB 131 is provided below:\n\nJoint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.\n\nJoint ventures take many forms and structures. This standard identifies three broad types \\- jointly controlled operations, jointly controlled assets and jointly controlled entities.\n\nThe following characteristics are common to all join ventures:\n\n(a) two or more venturers are bound by a contractual arrangement; and\n\n(b) the contractual arrangement establishes joint control\n\nJointly controlled operations involves the use of assets and other resources of the venturers rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate from the venturers themselves.\n\nJointly controlled assets involve the joint control or joint ownership by the venturers of one or more assets contributed or acquired to the purpose of the joint venture\n\nJointly controlled entities involve the establishment of a corporation, partnership, or other entity in which each venturer has an interest.\n\n###### (1) Name of Joint Venture\n\nReport the full name of the joint venture.\n\n###### (2) Description / Nature of Main Business\n\nIn the space provided, detail a brief description of the main business conducted by joint venture.\n\n###### (3) APRA Regulated General Insurer\n\nIf the joint venture is an APRA regulated general insurance entity input ‘yes’.\n\nIf the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.\n\n###### (4) Country of Incorporation\n\n###### This is the country in which the joint venture is incorporated.\n\n###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.\n\n###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:\n\n######  The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n\n######  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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (7) Goodwill net of impairment or Intangible Component of Investment in Joint Venture\n\nDisclose that component value of the reporting insurer’s investment/interest in the joint venture that comprises goodwill net of impairment and other forms of intangible assets.\n\n###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.\n\n###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.\n\n###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":107},{"sectionNumber":"(5) Ownership Percentage or Interest in ","sectionType":"section","heading":"(5) Ownership Percentage or Interest in Joint Venture %","content":"###### (5) Ownership Percentage or Interest in Joint Venture %\n\nDisclose the percentage of the reporting insurer ownership or interest in the joint venture.","sortOrder":108},{"sectionNumber":"(6) Fair Value of Investment / Interest ","sectionType":"section","heading":"(6) Fair Value of Investment / Interest in Joint Venture","content":"###### (6) Fair Value of Investment / Interest in Joint Venture\n\nDisclose the fair value of the investment/interest of the reporting insurer in the Joint Venture. Fair value is 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:","sortOrder":109},{"sectionNumber":"(8) Fair Value of Joint Venture","sectionType":"section","heading":"(8) Fair Value of Joint Venture","content":"###### (8) Fair Value of Joint Venture\n\nDisclose the fair value of the joint venture. Fair value is 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:\n\n-   The quoted market price (i.e. bid or ask price) in an active and liquid market; or\n-   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 – a realistic estimate of fair value on the basis of the results of a valuation technique that makes maximum use of market inputs, and relies as little as possible on entity-specific inputs.","sortOrder":113},{"sectionNumber":"(9) Net Income Recognised from Interest ","sectionType":"section","heading":"(9) Net Income Recognised from Interest in Joint Venture","content":"###### (9) Net Income Recognised from Interest in Joint Venture\n\nDisclose the net income recognised from the reporting insurer’s interest in the joint venture.","sortOrder":114},{"sectionNumber":"(10) Country (for which Gross Assets and","sectionType":"section","heading":"(10) Country (for which Gross Assets and Liabilities is reported)","content":"###### (10) Country (for which Gross Assets and Liabilities is reported)\n\nThe countries/regions listed on the form are:\n\n-   Australia;\n-   New Zealand;\n-   USA;\n-   UK;\n-   South East Asia (Excluding Japan);\n-   Continental Europe; and\n-   Other.\n\n(11) & (12) Disclosure of Gross Assets and Gross Liabilities\n\nDisclose the ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the assets are invested and liabilities are located. Enter the relevant details for each country/region as appropriate.\n\nDo not disclose this information if the joint venture is an APRA regulated general insurer.","sortOrder":115}],"analysis":{"kimi_summary":{"_metrics":{"model":"kimi-k2.5","source":"moonshot-realtime","completionTokens":2630},"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The legislation maintains a consistent scope as a supplementary reporting standard under the Financial Sector (Collection of Data) Act 2001. It replaces previous reporting standards for periods ending after 1 July 2010 (as noted in the transition clause), but does not expand beyond the original purpose of collecting prudential supervision data from general insurers."},"complexity_factors":["Six distinct reporting forms (GRF 400.0 through 450.0) with granular line-item instructions and reconciliation requirements to other APRA forms","Extensive cross-referencing to external accounting standards (AASB 1023, AASB 121, AASB 139) and the Insurance Act 1973","Technical insurance terminology requiring specialist knowledge (IBNR/IBNER, case estimates, accident year vs underwriting year, reserve strengthening vs releases)","15 distinct classes of business (e.g., Houseowners/Householders, Industrial Special Risks, Professional Indemnity) with specific categorisation rules","Foreign currency translation requirements with different rules for monetary items, non-monetary items, and hedging instruments","Differential treatment based on entity type (direct writers vs reinsurers vs foreign branches) with conditional submission requirements","Complex signing and authorisation chain involving digital certificates, paper signatures, and agent outsourcing provisions"],"plain_english_summary":"This instrument requires general insurers (including foreign branches in Australia) to submit six annual supplementary financial forms to APRA covering overseas exposure, outstanding claims movements, premium and claims by State/Territory, claims development history, and related entities. Submissions must be CEO/CFO‑authorized, lodged within four months of year‑end (electronic or paper), reported in AUD and rounded to thousands.\n\nAPRA uses the data for prudential supervision to monitor solvency, concentration risks and capital adequacy."}},"importantCases":[],"_links":{"self":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-11-of-2010-grs-400-2010-supp","history":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-11-of-2010-grs-400-2010-supp/history","analysis":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-11-of-2010-grs-400-2010-supp/analysis","conflicts":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-11-of-2010-grs-400-2010-supp/conflicts","importantCases":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-11-of-2010-grs-400-2010-supp/important-cases","documents":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-11-of-2010-grs-400-2010-supp/documents"}}