{"id":"F2008L00430","name":"Financial Sector (Collection of Data) (reporting standard) determination No. 19 of 2008 - ARS 220.0 - Impaired Facilities","slug":"financial-sector-collection-of-data-reporting-standard-determination-no-19-of-2008-ars-220-0-impaire","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"repealed","isInForce":false,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":119146,"registerId":"commonwealth-F2008L00430-current","compilationNumber":null,"startDate":"2026-04-03","status":"Repealed","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Reporting Standard ARS 220.0","sectionType":"part","heading":"Reporting Standard ARS 220.0","content":"## ![](image.001.png)\n\n## Reporting Standard ARS 220.0\n\n# Impaired Facilities\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 and outlines the overall requirements for the provision of information to APRA relating to an authorised deposit-taking institution’s impaired facilities. It should be read in conjunction with the versions of Form ARF 220.0 Impaired Facilities designated for a ‘Licensed ADI’ and ‘Consolidated Group’ and the associated instructions (all of which are attached and form part of this reporting standard).\n\n# Purpose\n\n1.  Data collected in Form ARF 220.0 Impaired Facilities (Form ARF 220.0) is used by APRA for the purpose of prudential supervision. It may also be used by the Reserve Bank of Australia and the Australian Bureau of Statistics.\n\n# Application\n\n2. This reporting standard applies to all authorised deposit-taking institutions (ADIs).[\\[1\\]](#_ftn1)\n\n# Information required\n\n3. An ADI to which this reporting standard applies must provide APRA with the information required by the version of Form ARF 220.0 designated for a ‘Licensed ADI’ for each reporting period.\n\n4. An ADI to which this reporting standard applies that is a highest parent entity in relation to a consolidated ADI group must also provide APRA with the information required by the version of Form ARF 220.0 designated for a ‘Consolidated Group’ for each reporting period.\n\n# Form and method of submission\n\n5. The information required by this reporting standard must be given to APRA in electronic form, using one of the electronic submission mechanisms provided by the ‘Direct to APRA’ (also known as ‘D2A’) application.\n\nNote: the Direct to APRA application software may be obtained from APRA.\n\n# Reporting periods and due dates\n\n6. Subject to paragraph 7, an ADI to which this reporting standard applies must provide the information required by this reporting standard for each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the ADI.\n\n7. APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular ADI, to require it to provide the information required by this reporting standard more frequently, or less frequently, having regard to:\n\n(a) the particular circumstances of the ADI;\n\n(b) the extent to which the information is required for the purposes of the prudential supervision of the ADI; and\n\n(c) the requirements of the Reserve Bank of Australia or the Australian Bureau of Statistics.\n\n8. The information required by this reporting standard must be provided to APRA in accordance with the table below. The right hand column of the table sets out the number of business days after the end of the reporting period to which the information relates within which information must be submitted to APRA by an ADI in the classes set out in the left hand column.\n\n| Class of ADI                              | Number of business days |\n| ----------------------------------------- | ----------------------- |\n| Australian-owned Bank                     | 20                      |\n| Foreign Subsidiary Bank                   | 20                      |\n| Branch of a Foreign Bank                  | 20                      |\n| Building Society                          | 15                      |\n| Credit Union                              | 15                      |\n| Specialist Credit Card Institution (SCCI) | 15                      |\n| Other ADI[2]                              | 15                      |\n\n9. APRA may grant an ADI 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 on the notice of extension.\n\n# Quality control\n\n10. The information provided by an ADI under this reporting standard (except for the information required under paragraph 4) must be the product of processes and controls that have been reviewed and tested by the external auditor of the ADI. AGS 1008 ‘Audit Implications of Prudential Reporting Requirements for Authorised Deposit-taking Institutions’, issued by the Auditing and Assurance Standards Board provides guidance on the scope and nature of the review and testing required from external auditors. This review and testing must be done on an annual basis or more frequently if necessary to enable the external auditor to form an opinion on the accuracy and reliability of the data.\n\n11. All information provided by an ADI under this reporting standard must be subject to processes and controls developed by the ADI for the internal review and authorisation of that information. It is the responsibility of the board and senior management of the ADI to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.\n\n# Authorisation\n\n12. If an ADI submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the ADI to digitally sign, authorise and encrypt the relevant data. For this purpose, APRA’s certificate authority will issue ‘digital certificates’, for use with the software, to officers of the ADI who have authority from the ADI to transmit the data to APRA.\n\n# Minor alterations to forms and instructions\n\n13. APRA may make minor variations to:\n\n> (a) a form that is part of this reporting standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or\n\n> (b) the instructions to a form, to clarify their application to the form\n\n> without changing any substantive requirement in the form or instructions.\n\n14. If APRA makes such a variation it must notify in writing each ADI that is required to report under this reporting standard.\n\n# Transitional\n\n15. An ADI must report under the old reporting standard in respect of a transitional reporting period. For these purposes:\n\nold reporting standard means the reporting standard revoked in the determination making this reporting standard (being the reporting standard which this reporting standard replaces).\n\ntransitional reporting period means a reporting period under the old reporting standard:\n\n(a) which ended before the date of revocation of the old reporting standard; and\n\n(b) in relation to which the ADI was required, under the old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.\n\nNote: for the avoidance of doubt, if an ADI was required to report under an old reporting standard, and the reporting documents were due before the date of revocation of the old reporting standard, the ADI is still required to provide the overdue reporting documents in accordance with the old reporting standard.\n\n# Interpretation\n\n16. In this reporting standard:\n\nAccounting Standard AASB 127 means the accounting standards so made by the Australian Accounting Standards Board.\n\nADI means an authorised deposit-taking institution within the meaning of the Banking Act 1959.\n\nAGS 1008 means the auditing and assurance standard entitled ‘Audit Implications of Prudential Reporting Requirements for Authorised Deposit-taking Institutions’ so made by the Auditing and Assurance Standards Board.\n\nAPRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998.\n\nAustralian-owned bank means a locally incorporated ADI that assumes or uses the word ‘bank’ in relation to its banking business and is not a foreign subsidiary bank.\n\nbranch of a foreign bank means a ‘foreign ADI’ as defined in section 5 of the Banking Act 1959, but does not include a SCCI that is a foreign ADI.\n\nbuilding society means a locally incorporated ADI that assumes or uses the expression ‘building society’ in relation to its banking business.\n\nbusiness days means ordinary business days, exclusive of Saturdays, Sundays and public holidays.\n\nclass of ADI means each of the following:\n\n(i) Australian-owned bank;\n\n(ii) foreign subsidiary bank;\n\n(iii) branch of a foreign bank;\n\n(iv) building society;\n\n(v) credit union;\n\n(vi) other ADI; and\n\n(vii) specialist credit card institution.\n\nconsolidated ADI group means a group comprising:\n\n(a) an ADI that is a highest parent entity; and\n\n(b) each subsidiary (within the meaning of Accounting Standard AASB 127) of that ADI, whether the subsidiary is locally-incorporated or not, other than a subsidiary that is excluded by the instructions attached to this standard.\n\ncredit union means a locally incorporated ADI that assumes or uses the expression ‘credit union’ in relation to its banking business and includes Cairns Penny Savings & Loans Limited.\n\ndue date means the relevant due date under paragraph 8 or, if applicable, paragraph 9.\n\nforeign subsidiary bank means a locally incorporated ADI in which a bank that is not locally incorporated has a stake of more than 15 per cent.\n\nhighest parent entity means an ADI that satisfies all of the following conditions:\n\n(a) it is locally-incorporated;\n\n(b) it has at least one subsidiary (within the meaning of Accounting Standard AASB 127); and\n\n(c) it is not itself a subsidiary (within the meaning of Accounting Standard AASB 127) of an ADI that is locally-incorporated.\n\nlocally incorporated means incorporated in Australia or in a State or Territory of Australia, by or under a Commonwealth, State or territory law.\n\nother ADI means an ADI that is not an Australian-owned bank, a branch of a foreign bank, a building society, a credit union, a foreign subsidiary bank or a specialist credit card institution but does not include Cairns Penny Savings & Loans Limited.\n\nreporting period means a period mentioned in paragraph 6 or, if applicable, paragraph 7.\n\nspecialist credit card institution means an ADI that is subject to a condition on its authority under section 9 of the Banking Act 1959 confining the banking business that the ADI is authorised to carry on to the activities of credit card acquiring and credit card issuing in any credit card scheme that was designated as a payment system under section 11 of the Payment Systems (Regulation) Act 1998 on 11 April 2001.\n\nstake means a stake determined under the Financial Sector (Shareholdings) Act 1998, as if the only associates that were taken into account under paragraph (b) of subclause 10(1) of the Schedule to that Act were those set out in paragraphs (h), (j) and (l) of subclause 4(1).","sortOrder":0},{"sectionNumber":"Impaired Facilities","sectionType":"part","heading":"Impaired Facilities","content":"# Impaired Facilities\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 and outlines the overall requirements for the provision of information to APRA relating to an authorised deposit-taking institution’s impaired facilities. It should be read in conjunction with the versions of Form ARF 220.0 Impaired Facilities designated for a ‘Licensed ADI’ and ‘Consolidated Group’ and the associated instructions (all of which are attached and form part of this reporting standard).\n\n# Purpose\n\n1.  Data collected in Form ARF 220.0 Impaired Facilities (Form ARF 220.0) is used by APRA for the purpose of prudential supervision. It may also be used by the Reserve Bank of Australia and the Australian Bureau of Statistics.\n\n# Application\n\n2. This reporting standard applies to all authorised deposit-taking institutions (ADIs).[\\[1\\]](#_ftn1)\n\n# Information required\n\n3. An ADI to which this reporting standard applies must provide APRA with the information required by the version of Form ARF 220.0 designated for a ‘Licensed ADI’ for each reporting period.\n\n4. An ADI to which this reporting standard applies that is a highest parent entity in relation to a consolidated ADI group must also provide APRA with the information required by the version of Form ARF 220.0 designated for a ‘Consolidated Group’ for each reporting period.\n\n# Form and method of submission\n\n5. The information required by this reporting standard must be given to APRA in electronic form, using one of the electronic submission mechanisms provided by the ‘Direct to APRA’ (also known as ‘D2A’) application.\n\nNote: the Direct to APRA application software may be obtained from APRA.\n\n# Reporting periods and due dates\n\n6. Subject to paragraph 7, an ADI to which this reporting standard applies must provide the information required by this reporting standard for each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the ADI.\n\n7. APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular ADI, to require it to provide the information required by this reporting standard more frequently, or less frequently, having regard to:\n\n(a) the particular circumstances of the ADI;\n\n(b) the extent to which the information is required for the purposes of the prudential supervision of the ADI; and\n\n(c) the requirements of the Reserve Bank of Australia or the Australian Bureau of Statistics.\n\n8. The information required by this reporting standard must be provided to APRA in accordance with the table below. The right hand column of the table sets out the number of business days after the end of the reporting period to which the information relates within which information must be submitted to APRA by an ADI in the classes set out in the left hand column.\n\n| Class of ADI                              | Number of business days |\n| ----------------------------------------- | ----------------------- |\n| Australian-owned Bank                     | 20                      |\n| Foreign Subsidiary Bank                   | 20                      |\n| Branch of a Foreign Bank                  | 20                      |\n| Building Society                          | 15                      |\n| Credit Union                              | 15                      |\n| Specialist Credit Card Institution (SCCI) | 15                      |\n| Other ADI[2]                              | 15                      |\n\n9. APRA may grant an ADI 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 on the notice of extension.\n\n# Quality control\n\n10. The information provided by an ADI under this reporting standard (except for the information required under paragraph 4) must be the product of processes and controls that have been reviewed and tested by the external auditor of the ADI. AGS 1008 ‘Audit Implications of Prudential Reporting Requirements for Authorised Deposit-taking Institutions’, issued by the Auditing and Assurance Standards Board provides guidance on the scope and nature of the review and testing required from external auditors. This review and testing must be done on an annual basis or more frequently if necessary to enable the external auditor to form an opinion on the accuracy and reliability of the data.\n\n11. All information provided by an ADI under this reporting standard must be subject to processes and controls developed by the ADI for the internal review and authorisation of that information. It is the responsibility of the board and senior management of the ADI to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.\n\n# Authorisation\n\n12. If an ADI submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the ADI to digitally sign, authorise and encrypt the relevant data. For this purpose, APRA’s certificate authority will issue ‘digital certificates’, for use with the software, to officers of the ADI who have authority from the ADI to transmit the data to APRA.\n\n# Minor alterations to forms and instructions\n\n13. APRA may make minor variations to:\n\n> (a) a form that is part of this reporting standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or\n\n> (b) the instructions to a form, to clarify their application to the form\n\n> without changing any substantive requirement in the form or instructions.\n\n14. If APRA makes such a variation it must notify in writing each ADI that is required to report under this reporting standard.\n\n# Transitional\n\n15. An ADI must report under the old reporting standard in respect of a transitional reporting period. For these purposes:\n\nold reporting standard means the reporting standard revoked in the determination making this reporting standard (being the reporting standard which this reporting standard replaces).\n\ntransitional reporting period means a reporting period under the old reporting standard:\n\n(a) which ended before the date of revocation of the old reporting standard; and\n\n(b) in relation to which the ADI was required, under the old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.\n\nNote: for the avoidance of doubt, if an ADI was required to report under an old reporting standard, and the reporting documents were due before the date of revocation of the old reporting standard, the ADI is still required to provide the overdue reporting documents in accordance with the old reporting standard.\n\n# Interpretation\n\n16. In this reporting standard:\n\nAccounting Standard AASB 127 means the accounting standards so made by the Australian Accounting Standards Board.\n\nADI means an authorised deposit-taking institution within the meaning of the Banking Act 1959.\n\nAGS 1008 means the auditing and assurance standard entitled ‘Audit Implications of Prudential Reporting Requirements for Authorised Deposit-taking Institutions’ so made by the Auditing and Assurance Standards Board.\n\nAPRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998.\n\nAustralian-owned bank means a locally incorporated ADI that assumes or uses the word ‘bank’ in relation to its banking business and is not a foreign subsidiary bank.\n\nbranch of a foreign bank means a ‘foreign ADI’ as defined in section 5 of the Banking Act 1959, but does not include a SCCI that is a foreign ADI.\n\nbuilding society means a locally incorporated ADI that assumes or uses the expression ‘building society’ in relation to its banking business.\n\nbusiness days means ordinary business days, exclusive of Saturdays, Sundays and public holidays.\n\nclass of ADI means each of the following:\n\n(i) Australian-owned bank;\n\n(ii) foreign subsidiary bank;\n\n(iii) branch of a foreign bank;\n\n(iv) building society;\n\n(v) credit union;\n\n(vi) other ADI; and\n\n(vii) specialist credit card institution.\n\nconsolidated ADI group means a group comprising:\n\n(a) an ADI that is a highest parent entity; and\n\n(b) each subsidiary (within the meaning of Accounting Standard AASB 127) of that ADI, whether the subsidiary is locally-incorporated or not, other than a subsidiary that is excluded by the instructions attached to this standard.\n\ncredit union means a locally incorporated ADI that assumes or uses the expression ‘credit union’ in relation to its banking business and includes Cairns Penny Savings & Loans Limited.\n\ndue date means the relevant due date under paragraph 8 or, if applicable, paragraph 9.\n\nforeign subsidiary bank means a locally incorporated ADI in which a bank that is not locally incorporated has a stake of more than 15 per cent.\n\nhighest parent entity means an ADI that satisfies all of the following conditions:\n\n(a) it is locally-incorporated;\n\n(b) it has at least one subsidiary (within the meaning of Accounting Standard AASB 127); and\n\n(c) it is not itself a subsidiary (within the meaning of Accounting Standard AASB 127) of an ADI that is locally-incorporated.\n\nlocally incorporated means incorporated in Australia or in a State or Territory of Australia, by or under a Commonwealth, State or territory law.\n\nother ADI means an ADI that is not an Australian-owned bank, a branch of a foreign bank, a building society, a credit union, a foreign subsidiary bank or a specialist credit card institution but does not include Cairns Penny Savings & Loans Limited.\n\nreporting period means a period mentioned in paragraph 6 or, if applicable, paragraph 7.\n\nspecialist credit card institution means an ADI that is subject to a condition on its authority under section 9 of the Banking Act 1959 confining the banking business that the ADI is authorised to carry on to the activities of credit card acquiring and credit card issuing in any credit card scheme that was designated as a payment system under section 11 of the Payment Systems (Regulation) Act 1998 on 11 April 2001.\n\nstake means a stake determined under the Financial Sector (Shareholdings) Act 1998, as if the only associates that were taken into account under paragraph (b) of subclause 10(1) of the Schedule to that Act were those set out in paragraphs (h), (j) and (l) of subclause 4(1).","sortOrder":1},{"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 and outlines the overall requirements for the provision of information to APRA relating to an authorised deposit-taking institution’s impaired facilities. It should be read in conjunction with the versions of Form ARF 220.0 Impaired Facilities designated for a ‘Licensed ADI’ and ‘Consolidated Group’ and the associated instructions (all of which are attached and form part of this reporting standard).","sortOrder":2},{"sectionNumber":"Purpose","sectionType":"part","heading":"Purpose","content":"# Purpose\n\n1.  Data collected in Form ARF 220.0 Impaired Facilities (Form ARF 220.0) is used by APRA for the purpose of prudential supervision. It may also be used by the Reserve Bank of Australia and the Australian Bureau of Statistics.","sortOrder":3},{"sectionNumber":"Application","sectionType":"part","heading":"Application","content":"# Application\n\n2. This reporting standard applies to all authorised deposit-taking institutions (ADIs).[\\[1\\]](#_ftn1)","sortOrder":4},{"sectionNumber":"Information required","sectionType":"part","heading":"Information required","content":"# Information required\n\n3. An ADI to which this reporting standard applies must provide APRA with the information required by the version of Form ARF 220.0 designated for a ‘Licensed ADI’ for each reporting period.\n\n4. An ADI to which this reporting standard applies that is a highest parent entity in relation to a consolidated ADI group must also provide APRA with the information required by the version of Form ARF 220.0 designated for a ‘Consolidated Group’ for each reporting period.","sortOrder":5},{"sectionNumber":"Form and method of submission","sectionType":"part","heading":"Form and method of submission","content":"# Form and method of submission\n\n5. The information required by this reporting standard must be given to APRA in electronic form, using one of the electronic submission mechanisms provided by the ‘Direct to APRA’ (also known as ‘D2A’) application.\n\nNote: the Direct to APRA application software may be obtained from APRA.","sortOrder":6},{"sectionNumber":"Reporting periods and due dates","sectionType":"part","heading":"Reporting periods and due dates","content":"# Reporting periods and due dates\n\n6. Subject to paragraph 7, an ADI to which this reporting standard applies must provide the information required by this reporting standard for each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the ADI.\n\n7. APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular ADI, to require it to provide the information required by this reporting standard more frequently, or less frequently, having regard to:\n\n(a) the particular circumstances of the ADI;\n\n(b) the extent to which the information is required for the purposes of the prudential supervision of the ADI; and\n\n(c) the requirements of the Reserve Bank of Australia or the Australian Bureau of Statistics.\n\n8. The information required by this reporting standard must be provided to APRA in accordance with the table below. The right hand column of the table sets out the number of business days after the end of the reporting period to which the information relates within which information must be submitted to APRA by an ADI in the classes set out in the left hand column.\n\n| Class of ADI                              | Number of business days |\n| ----------------------------------------- | ----------------------- |\n| Australian-owned Bank                     | 20                      |\n| Foreign Subsidiary Bank                   | 20                      |\n| Branch of a Foreign Bank                  | 20                      |\n| Building Society                          | 15                      |\n| Credit Union                              | 15                      |\n| Specialist Credit Card Institution (SCCI) | 15                      |\n| Other ADI[2]                              | 15                      |\n\n9. APRA may grant an ADI 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 on the notice of extension.\n\n# Quality control\n\n10. The information provided by an ADI under this reporting standard (except for the information required under paragraph 4) must be the product of processes and controls that have been reviewed and tested by the external auditor of the ADI. AGS 1008 ‘Audit Implications of Prudential Reporting Requirements for Authorised Deposit-taking Institutions’, issued by the Auditing and Assurance Standards Board provides guidance on the scope and nature of the review and testing required from external auditors. This review and testing must be done on an annual basis or more frequently if necessary to enable the external auditor to form an opinion on the accuracy and reliability of the data.\n\n11. All information provided by an ADI under this reporting standard must be subject to processes and controls developed by the ADI for the internal review and authorisation of that information. It is the responsibility of the board and senior management of the ADI to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.\n\n# Authorisation\n\n12. If an ADI submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the ADI to digitally sign, authorise and encrypt the relevant data. For this purpose, APRA’s certificate authority will issue ‘digital certificates’, for use with the software, to officers of the ADI who have authority from the ADI to transmit the data to APRA.\n\n# Minor alterations to forms and instructions\n\n13. APRA may make minor variations to:\n\n> (a) a form that is part of this reporting standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or\n\n> (b) the instructions to a form, to clarify their application to the form\n\n> without changing any substantive requirement in the form or instructions.\n\n14. If APRA makes such a variation it must notify in writing each ADI that is required to report under this reporting standard.\n\n# Transitional\n\n15. An ADI must report under the old reporting standard in respect of a transitional reporting period. For these purposes:\n\nold reporting standard means the reporting standard revoked in the determination making this reporting standard (being the reporting standard which this reporting standard replaces).\n\ntransitional reporting period means a reporting period under the old reporting standard:\n\n(a) which ended before the date of revocation of the old reporting standard; and\n\n(b) in relation to which the ADI was required, under the old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.\n\nNote: for the avoidance of doubt, if an ADI was required to report under an old reporting standard, and the reporting documents were due before the date of revocation of the old reporting standard, the ADI is still required to provide the overdue reporting documents in accordance with the old reporting standard.\n\n# Interpretation\n\n16. In this reporting standard:\n\nAccounting Standard AASB 127 means the accounting standards so made by the Australian Accounting Standards Board.\n\nADI means an authorised deposit-taking institution within the meaning of the Banking Act 1959.\n\nAGS 1008 means the auditing and assurance standard entitled ‘Audit Implications of Prudential Reporting Requirements for Authorised Deposit-taking Institutions’ so made by the Auditing and Assurance Standards Board.\n\nAPRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998.\n\nAustralian-owned bank means a locally incorporated ADI that assumes or uses the word ‘bank’ in relation to its banking business and is not a foreign subsidiary bank.\n\nbranch of a foreign bank means a ‘foreign ADI’ as defined in section 5 of the Banking Act 1959, but does not include a SCCI that is a foreign ADI.\n\nbuilding society means a locally incorporated ADI that assumes or uses the expression ‘building society’ in relation to its banking business.\n\nbusiness days means ordinary business days, exclusive of Saturdays, Sundays and public holidays.\n\nclass of ADI means each of the following:\n\n(i) Australian-owned bank;\n\n(ii) foreign subsidiary bank;\n\n(iii) branch of a foreign bank;\n\n(iv) building society;\n\n(v) credit union;\n\n(vi) other ADI; and\n\n(vii) specialist credit card institution.\n\nconsolidated ADI group means a group comprising:\n\n(a) an ADI that is a highest parent entity; and\n\n(b) each subsidiary (within the meaning of Accounting Standard AASB 127) of that ADI, whether the subsidiary is locally-incorporated or not, other than a subsidiary that is excluded by the instructions attached to this standard.\n\ncredit union means a locally incorporated ADI that assumes or uses the expression ‘credit union’ in relation to its banking business and includes Cairns Penny Savings & Loans Limited.\n\ndue date means the relevant due date under paragraph 8 or, if applicable, paragraph 9.\n\nforeign subsidiary bank means a locally incorporated ADI in which a bank that is not locally incorporated has a stake of more than 15 per cent.\n\nhighest parent entity means an ADI that satisfies all of the following conditions:\n\n(a) it is locally-incorporated;\n\n(b) it has at least one subsidiary (within the meaning of Accounting Standard AASB 127); and\n\n(c) it is not itself a subsidiary (within the meaning of Accounting Standard AASB 127) of an ADI that is locally-incorporated.\n\nlocally incorporated means incorporated in Australia or in a State or Territory of Australia, by or under a Commonwealth, State or territory law.\n\nother ADI means an ADI that is not an Australian-owned bank, a branch of a foreign bank, a building society, a credit union, a foreign subsidiary bank or a specialist credit card institution but does not include Cairns Penny Savings & Loans Limited.\n\nreporting period means a period mentioned in paragraph 6 or, if applicable, paragraph 7.\n\nspecialist credit card institution means an ADI that is subject to a condition on its authority under section 9 of the Banking Act 1959 confining the banking business that the ADI is authorised to carry on to the activities of credit card acquiring and credit card issuing in any credit card scheme that was designated as a payment system under section 11 of the Payment Systems (Regulation) Act 1998 on 11 April 2001.\n\nstake means a stake determined under the Financial Sector (Shareholdings) Act 1998, as if the only associates that were taken into account under paragraph (b) of subclause 10(1) of the Schedule to that Act were those set out in paragraphs (h), (j) and (l) of subclause 4(1).","sortOrder":7},{"sectionNumber":"Class of ADI","sectionType":"part","heading":"Class of ADI","content":"# Class of ADI","sortOrder":8},{"sectionNumber":"Number of business days","sectionType":"part","heading":"Number of business days","content":"# Number of business days","sortOrder":9},{"sectionNumber":"Australian-owned Bank","sectionType":"part","heading":"Australian-owned Bank","content":"# Australian-owned Bank","sortOrder":10},{"sectionNumber":"20","sectionType":"part","heading":"20","content":"# 20","sortOrder":11},{"sectionNumber":"Foreign Subsidiary Bank","sectionType":"part","heading":"Foreign Subsidiary Bank","content":"# Foreign Subsidiary Bank","sortOrder":12},{"sectionNumber":"Branch of a Foreign Bank","sectionType":"part","heading":"Branch of a Foreign Bank","content":"# Branch of a Foreign Bank","sortOrder":14},{"sectionNumber":"Building Society","sectionType":"part","heading":"Building Society","content":"# Building Society","sortOrder":16},{"sectionNumber":"15","sectionType":"part","heading":"15","content":"# 15","sortOrder":17},{"sectionNumber":"Credit Union","sectionType":"part","heading":"Credit Union","content":"# Credit Union","sortOrder":18},{"sectionNumber":"Specialist Credit Card Institution (SCCI","sectionType":"part","heading":"Specialist Credit Card Institution (SCCI)","content":"# Specialist Credit Card Institution (SCCI)","sortOrder":20},{"sectionNumber":"Other ADI[2]","sectionType":"part","heading":"Other ADI[2]","content":"# Other ADI[\\[2\\]](#_ftn2)","sortOrder":22},{"sectionNumber":"Quality control","sectionType":"part","heading":"Quality control","content":"# Quality control\n\n10. The information provided by an ADI under this reporting standard (except for the information required under paragraph 4) must be the product of processes and controls that have been reviewed and tested by the external auditor of the ADI. AGS 1008 ‘Audit Implications of Prudential Reporting Requirements for Authorised Deposit-taking Institutions’, issued by the Auditing and Assurance Standards Board provides guidance on the scope and nature of the review and testing required from external auditors. This review and testing must be done on an annual basis or more frequently if necessary to enable the external auditor to form an opinion on the accuracy and reliability of the data.\n\n11. All information provided by an ADI under this reporting standard must be subject to processes and controls developed by the ADI for the internal review and authorisation of that information. It is the responsibility of the board and senior management of the ADI to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.","sortOrder":24},{"sectionNumber":"Authorisation","sectionType":"part","heading":"Authorisation","content":"# Authorisation\n\n12. If an ADI submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the ADI to digitally sign, authorise and encrypt the relevant data. For this purpose, APRA’s certificate authority will issue ‘digital certificates’, for use with the software, to officers of the ADI who have authority from the ADI to transmit the data to APRA.","sortOrder":25},{"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:\n\n> (a) a form that is part of this reporting standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or\n\n> (b) the instructions to a form, to clarify their application to the form\n\n> without changing any substantive requirement in the form or instructions.\n\n14. If APRA makes such a variation it must notify in writing each ADI that is required to report under this reporting standard.","sortOrder":26},{"sectionNumber":"Transitional","sectionType":"part","heading":"Transitional","content":"# Transitional\n\n15. An ADI must report under the old reporting standard in respect of a transitional reporting period. For these purposes:\n\nold reporting standard means the reporting standard revoked in the determination making this reporting standard (being the reporting standard which this reporting standard replaces).\n\ntransitional reporting period means a reporting period under the old reporting standard:\n\n(a) which ended before the date of revocation of the old reporting standard; and\n\n(b) in relation to which the ADI was required, under the old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.\n\nNote: for the avoidance of doubt, if an ADI was required to report under an old reporting standard, and the reporting documents were due before the date of revocation of the old reporting standard, the ADI is still required to provide the overdue reporting documents in accordance with the old reporting standard.","sortOrder":27},{"sectionNumber":"Interpretation","sectionType":"part","heading":"Interpretation","content":"# Interpretation\n\n16. In this reporting standard:\n\nAccounting Standard AASB 127 means the accounting standards so made by the Australian Accounting Standards Board.\n\nADI means an authorised deposit-taking institution within the meaning of the Banking Act 1959.\n\nAGS 1008 means the auditing and assurance standard entitled ‘Audit Implications of Prudential Reporting Requirements for Authorised Deposit-taking Institutions’ so made by the Auditing and Assurance Standards Board.\n\nAPRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998.\n\nAustralian-owned bank means a locally incorporated ADI that assumes or uses the word ‘bank’ in relation to its banking business and is not a foreign subsidiary bank.\n\nbranch of a foreign bank means a ‘foreign ADI’ as defined in section 5 of the Banking Act 1959, but does not include a SCCI that is a foreign ADI.\n\nbuilding society means a locally incorporated ADI that assumes or uses the expression ‘building society’ in relation to its banking business.\n\nbusiness days means ordinary business days, exclusive of Saturdays, Sundays and public holidays.\n\nclass of ADI means each of the following:\n\n(i) Australian-owned bank;\n\n(ii) foreign subsidiary bank;\n\n(iii) branch of a foreign bank;\n\n(iv) building society;\n\n(v) credit union;\n\n(vi) other ADI; and\n\n(vii) specialist credit card institution.\n\nconsolidated ADI group means a group comprising:\n\n(a) an ADI that is a highest parent entity; and\n\n(b) each subsidiary (within the meaning of Accounting Standard AASB 127) of that ADI, whether the subsidiary is locally-incorporated or not, other than a subsidiary that is excluded by the instructions attached to this standard.\n\ncredit union means a locally incorporated ADI that assumes or uses the expression ‘credit union’ in relation to its banking business and includes Cairns Penny Savings & Loans Limited.\n\ndue date means the relevant due date under paragraph 8 or, if applicable, paragraph 9.\n\nforeign subsidiary bank means a locally incorporated ADI in which a bank that is not locally incorporated has a stake of more than 15 per cent.\n\nhighest parent entity means an ADI that satisfies all of the following conditions:\n\n(a) it is locally-incorporated;\n\n(b) it has at least one subsidiary (within the meaning of Accounting Standard AASB 127); and\n\n(c) it is not itself a subsidiary (within the meaning of Accounting Standard AASB 127) of an ADI that is locally-incorporated.\n\nlocally incorporated means incorporated in Australia or in a State or Territory of Australia, by or under a Commonwealth, State or territory law.\n\nother ADI means an ADI that is not an Australian-owned bank, a branch of a foreign bank, a building society, a credit union, a foreign subsidiary bank or a specialist credit card institution but does not include Cairns Penny Savings & Loans Limited.\n\nreporting period means a period mentioned in paragraph 6 or, if applicable, paragraph 7.\n\nspecialist credit card institution means an ADI that is subject to a condition on its authority under section 9 of the Banking Act 1959 confining the banking business that the ADI is authorised to carry on to the activities of credit card acquiring and credit card issuing in any credit card scheme that was designated as a payment system under section 11 of the Payment Systems (Regulation) Act 1998 on 11 April 2001.\n\nstake means a stake determined under the Financial Sector (Shareholdings) Act 1998, as if the only associates that were taken into account under paragraph (b) of subclause 10(1) of the Schedule to that Act were those set out in paragraphs (h), (j) and (l) of subclause 4(1).","sortOrder":28},{"sectionNumber":"Instruction Guide","sectionType":"part","heading":"Instruction Guide","content":"# Instruction Guide\n\nGeneral directions and notes\n\nReporting entity\n\nThis form is to be completed by all authorised deposit-taking institutions (ADIs) (other than Specialist Credit Card Institutions (SCCIs) that engage only in credit card acquiring activities) on both a licensed ADI and consolidated ADI group basis (where applicable).\n\nBranches of foreign banks and SCCIs operating through branches in Australia are required to complete this form for the Australian branch only.","sortOrder":29},{"sectionNumber":"Licensed ADI","sectionType":"subdivision","heading":"Licensed ADI","content":"#### Licensed ADI\n\nThis refers to the operations of the reporting ADI on a stand-alone basis.\n\nSecuritisation deconsolidation principle\n\nExcept as otherwise specified in these instructions, the following applies:\n\n1.  Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that meets APRA’s operational requirements for regulatory capital relief under Prudential Standard APS 120 Securitisation (APS 120):\n\n(a) special purpose vehicles (SPVs) holding securitised assets may be treated as non-consolidated independent third parties for regulatory reporting purposes, irrespective of whether the SPVs (or their assets) are consolidated for accounting purposes;\n\n(b) the assets, liabilities, revenues and expenses of the relevant SPVs may be excluded from the ADI’s reported amounts in APRA’s regulatory reporting returns; and\n\n(c) the underlying exposures (i.e. the pool) under such a securitisation may be excluded from the calculation of the ADI’s regulatory capital (refer to APS 120). However, the ADI must still hold regulatory capital for the securitisation exposures[\\[3\\]](#_ftn3) that it retains or acquires and such exposures are to be reported in Form ARF 120.0 Standardised – Securitisation or Forms ARF 120.1A to ARF 120.1C IRB – Securitisation (as appropriate). The RWA relating to such securitisation exposures must also be reported in Form ARF 110.0 Capital Adequacy (ARF 110.0).\n\n2. Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that does not meet APRA’s operational requirements for regulatory capital relief under APS 120, or the ADI elects to treat the securitised assets as on-balance sheet assets under Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk or Prudential Standard APS 113 Capital Adequacy: Internal Ratings-based Approach to Credit Risk, such exposures are to be reported as on-balance sheet assets in APRA’s regulatory reporting returns. In addition, these exposures must also be reported as a part of the ADI’s total securitised assets within Form ARF 120.2 Securitisation – Supplementary Items.","sortOrder":30},{"sectionNumber":"Consolidated ADI group","sectionType":"subdivision","heading":"Consolidated ADI group","content":"#### Consolidated ADI group\n\nThis refers to the consolidated group of the reporting ADI at Level 2 (i.e. the consolidated banking group level) defined in accordance with the ADI Prudential Standard APS 110 Capital Adequacy.\n\nThe basis of consolidation required in this form is in accordance with the prudential consolidated ADI group. The prudential consolidated group should also be determined in accordance with Australian accounting standards, notably AASB 127 Consolidated and Separate Financial Statements with the following modifications:\n\n1.  Include the following:\n\n-   all controlled banking entities, securities entities and other financial entities (e.g. finance companies, money market corporations, stockbrokers and leasing companies).\n\n2. Exclude subsidiary entities involved in the following business activities:\n\n-   insurance businesses (including friendly societies and health funds);\n-   acting as manager, responsible entity, approved trustee, trustee or similar role in relation to funds management or the securitisation of assets;\n-   non-financial (commercial) operations; and\n-   special purpose vehicles whose assets have satisfied the clean sale requirements in APS 120).\n\nReporting period\n\nThe form is to be completed as at the last day of the stated reporting quarter. Australian-owned banks, foreign subsidiary banks, branches of foreign banks and other ADIs should submit the completed form to APRA within 20 business days after the end of the relevant reporting quarter. Credit Unions, Cairns Penny Savings & Loans Limited, Building Societies and SCCIs should submit the completed form to APRA within 15 business days after the end of the relevant reporting quarter.\n\n  \nUnit of measurement\n\nBanks are asked to complete the form in millions of Australian dollars rounded to one decimal place, and for other ADIs, in whole Australian dollars (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 outstanding at the reporting date must be translated at the spot rate at the reporting date;[\\[4\\]](#_ftn4)\n2.  foreign currency non-monetary items that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction;[\\[5\\]](#_ftn5)\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 basis\n\nParts 1A and 2A are to be completed on an “audited” basis while Parts 1B and 2B are to be completed on a “best endeavours” basis.\n\nGuidance\n\nPlease refer to APS 220 Credit Quality (APS 220) and its associated Guidance Notes when completing this form.\n\nClassification schema\n\nThe classification scheme used in ARF 220.0 Impaired Facilities (ARF 220.0) is consistent with the classification scheme used in ARF 320.0 Statement of Financial Position (Domestic Books) (ARF 320) and ARF 323.0 Statement of Financial Position (Licensed ADI) (ARF 323.0).","sortOrder":31},{"sectionNumber":"Resident/non-resident classification","sectionType":"part","heading":"Resident/non-resident classification","content":"## Resident/non-resident classification\n\n-   An Australian resident is any individual, business or other organisation domiciled in Australia. Australian branches and Australian subsidiaries of foreign businesses are regarded as Australian residents.\n-   A non-resident is any individual, business or other organisation domiciled overseas. Foreign branches and foreign subsidiaries of Australian businesses are regarded as non-residents.\n\nSector definitions","sortOrder":32},{"sectionNumber":"Households","sectionType":"part","heading":"Households","content":"# Households\n\nThis comprises individuals, or groups of individuals, resident in Australia whose dealings with other sectors are for personal or household purposes.\n\n  \nExclude:\n\n-   sole proprietors, partnerships, family trusts, and any other unincorporated enterprises owned by households (record as private unincorporated businesses).","sortOrder":33},{"sectionNumber":"Community service organisations (CSOs)","sectionType":"part","heading":"Community service organisations (CSOs)","content":"# Community service organisations (CSOs)\n\nInclude:\n\n-   institutions financed mostly by members’ contributions, e.g. trade unions, professional societies, consumer associations, political parties, churches and religious societies, and social, cultural, recreational and sports clubs; and\n-   charities and aid organisations financed by voluntary transfers.\n\nExclude:\n\n-   CSOs and non-profit institutions controlled and mainly financed by government (record as other).\n\nNon-financial corporations\n\nThis comprises private trading corporations and private unincorporated businesses.\n\nPrivate trading corporations\n\nPrivate trading corporations are those owned and controlled by the private sector whose main activity is producing goods or non-financial services for sale.\n\nInclude:\n\n-   all resident private corporate trading enterprises, and non-profit institutions that are market producers of goods or non-financial services;\n-   intra-group financiers (Financial Sector (Collection of Data) Act 2001 category I), retailers (Financial Sector (Collection of Data) Act 2001 category H) and parent companies with significant holdings of shares in private trading companies;\n-   privately owned schools and hospitals;\n-   any unincorporated unit that is a branch in Australia of a non-resident company and which is not included in the financial sector; and\n-   any unincorporated business owned and operated by trading corporations (e.g. joint ventures).\n\nExclude:\n\n-   unincorporated businesses, except for branches of non-resident companies and joint ventures or partnerships owned by corporations; and\n-   non-resident enterprises.","sortOrder":34},{"sectionNumber":"Private unincorporated businesses","sectionType":"division","heading":"Private unincorporated businesses","content":"### Private unincorporated businesses\n\nThis comprises individuals acting as sole proprietors or in partnerships, for commercial or professional purposes. The major businesses to be included in this sub-sector are unincorporated farms, unincorporated retailers, unincorporated professional practices (medical, legal, dental, accounting, etc.), unincorporated businesses of tradesmen such as plumbers, carpenters, etc.","sortOrder":35},{"sectionNumber":"Financial corporations","sectionType":"part","heading":"Financial corporations","content":"Reporting Form ARF 220.0\n\nImpaired Facilities\n\n# Instruction Guide\n\nGeneral directions and notes\n\nReporting entity\n\nThis form is to be completed by all authorised deposit-taking institutions (ADIs) (other than Specialist Credit Card Institutions (SCCIs) that engage only in credit card acquiring activities) on both a licensed ADI and consolidated ADI group basis (where applicable).\n\nBranches of foreign banks and SCCIs operating through branches in Australia are required to complete this form for the Australian branch only.\n\n#### Licensed ADI\n\nThis refers to the operations of the reporting ADI on a stand-alone basis.\n\nSecuritisation deconsolidation principle\n\nExcept as otherwise specified in these instructions, the following applies:\n\n1.  Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that meets APRA’s operational requirements for regulatory capital relief under Prudential Standard APS 120 Securitisation (APS 120):\n\n(a) special purpose vehicles (SPVs) holding securitised assets may be treated as non-consolidated independent third parties for regulatory reporting purposes, irrespective of whether the SPVs (or their assets) are consolidated for accounting purposes;\n\n(b) the assets, liabilities, revenues and expenses of the relevant SPVs may be excluded from the ADI’s reported amounts in APRA’s regulatory reporting returns; and\n\n(c) the underlying exposures (i.e. the pool) under such a securitisation may be excluded from the calculation of the ADI’s regulatory capital (refer to APS 120). However, the ADI must still hold regulatory capital for the securitisation exposures[\\[3\\]](#_ftn3) that it retains or acquires and such exposures are to be reported in Form ARF 120.0 Standardised – Securitisation or Forms ARF 120.1A to ARF 120.1C IRB – Securitisation (as appropriate). The RWA relating to such securitisation exposures must also be reported in Form ARF 110.0 Capital Adequacy (ARF 110.0).\n\n2. Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that does not meet APRA’s operational requirements for regulatory capital relief under APS 120, or the ADI elects to treat the securitised assets as on-balance sheet assets under Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk or Prudential Standard APS 113 Capital Adequacy: Internal Ratings-based Approach to Credit Risk, such exposures are to be reported as on-balance sheet assets in APRA’s regulatory reporting returns. In addition, these exposures must also be reported as a part of the ADI’s total securitised assets within Form ARF 120.2 Securitisation – Supplementary Items.\n\n#### Consolidated ADI group\n\nThis refers to the consolidated group of the reporting ADI at Level 2 (i.e. the consolidated banking group level) defined in accordance with the ADI Prudential Standard APS 110 Capital Adequacy.\n\nThe basis of consolidation required in this form is in accordance with the prudential consolidated ADI group. The prudential consolidated group should also be determined in accordance with Australian accounting standards, notably AASB 127 Consolidated and Separate Financial Statements with the following modifications:\n\n1.  Include the following:\n\n-   all controlled banking entities, securities entities and other financial entities (e.g. finance companies, money market corporations, stockbrokers and leasing companies).\n\n2. Exclude subsidiary entities involved in the following business activities:\n\n-   insurance businesses (including friendly societies and health funds);\n-   acting as manager, responsible entity, approved trustee, trustee or similar role in relation to funds management or the securitisation of assets;\n-   non-financial (commercial) operations; and\n-   special purpose vehicles whose assets have satisfied the clean sale requirements in APS 120).\n\nReporting period\n\nThe form is to be completed as at the last day of the stated reporting quarter. Australian-owned banks, foreign subsidiary banks, branches of foreign banks and other ADIs should submit the completed form to APRA within 20 business days after the end of the relevant reporting quarter. Credit Unions, Cairns Penny Savings & Loans Limited, Building Societies and SCCIs should submit the completed form to APRA within 15 business days after the end of the relevant reporting quarter.\n\n  \nUnit of measurement\n\nBanks are asked to complete the form in millions of Australian dollars rounded to one decimal place, and for other ADIs, in whole Australian dollars (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 outstanding at the reporting date must be translated at the spot rate at the reporting date;[\\[4\\]](#_ftn4)\n2.  foreign currency non-monetary items that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction;[\\[5\\]](#_ftn5)\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 basis\n\nParts 1A and 2A are to be completed on an “audited” basis while Parts 1B and 2B are to be completed on a “best endeavours” basis.\n\nGuidance\n\nPlease refer to APS 220 Credit Quality (APS 220) and its associated Guidance Notes when completing this form.\n\nClassification schema\n\nThe classification scheme used in ARF 220.0 Impaired Facilities (ARF 220.0) is consistent with the classification scheme used in ARF 320.0 Statement of Financial Position (Domestic Books) (ARF 320) and ARF 323.0 Statement of Financial Position (Licensed ADI) (ARF 323.0).\n\n## Resident/non-resident classification\n\n-   An Australian resident is any individual, business or other organisation domiciled in Australia. Australian branches and Australian subsidiaries of foreign businesses are regarded as Australian residents.\n-   A non-resident is any individual, business or other organisation domiciled overseas. Foreign branches and foreign subsidiaries of Australian businesses are regarded as non-residents.\n\nSector definitions\n\n# Households\n\nThis comprises individuals, or groups of individuals, resident in Australia whose dealings with other sectors are for personal or household purposes.\n\n  \nExclude:\n\n-   sole proprietors, partnerships, family trusts, and any other unincorporated enterprises owned by households (record as private unincorporated businesses).\n\n# Community service organisations (CSOs)\n\nInclude:\n\n-   institutions financed mostly by members’ contributions, e.g. trade unions, professional societies, consumer associations, political parties, churches and religious societies, and social, cultural, recreational and sports clubs; and\n-   charities and aid organisations financed by voluntary transfers.\n\nExclude:\n\n-   CSOs and non-profit institutions controlled and mainly financed by government (record as other).\n\nNon-financial corporations\n\nThis comprises private trading corporations and private unincorporated businesses.\n\nPrivate trading corporations\n\nPrivate trading corporations are those owned and controlled by the private sector whose main activity is producing goods or non-financial services for sale.\n\nInclude:\n\n-   all resident private corporate trading enterprises, and non-profit institutions that are market producers of goods or non-financial services;\n-   intra-group financiers (Financial Sector (Collection of Data) Act 2001 category I), retailers (Financial Sector (Collection of Data) Act 2001 category H) and parent companies with significant holdings of shares in private trading companies;\n-   privately owned schools and hospitals;\n-   any unincorporated unit that is a branch in Australia of a non-resident company and which is not included in the financial sector; and\n-   any unincorporated business owned and operated by trading corporations (e.g. joint ventures).\n\nExclude:\n\n-   unincorporated businesses, except for branches of non-resident companies and joint ventures or partnerships owned by corporations; and\n-   non-resident enterprises.\n\n### Private unincorporated businesses\n\nThis comprises individuals acting as sole proprietors or in partnerships, for commercial or professional purposes. The major businesses to be included in this sub-sector are unincorporated farms, unincorporated retailers, unincorporated professional practices (medical, legal, dental, accounting, etc.), unincorporated businesses of tradesmen such as plumbers, carpenters, etc.\n\n# Financial corporations\n\n### ADIs\n\nADIs refers to corporations in relation to which an authority under subsection 9(3) is in force.\n\nInclude:\n\n-   development banks; and\n-   foreign banks licensed to operate in Australia under the Banking Act 1959.\n\nExclude:\n\n-   merchant banks (record as Registered Financial Corporations (RFCs)); and\n-   non-resident banks (record as non-resident counterparties).\n\nRFCs\n\n## RFCs refers to corporations registered under the Financial Sector (Collection of Data) Act 2001 that are classified to Categories D through G and cash management trusts.\n\nInclude:\n\n-   money market corporations (also referred to as \"merchant banks\") (D);\n-   pastoral finance companies (E);\n-   finance companies (F);\n-   general financiers (G); and\n-   cash management trusts.\n\n## A list of corporations registered under the Financial Sector (Collection of Data) Act 2001 and their classification are available on request.\n\n  \nExclude:\n\n-   intra group financiers and retailers registered under the Financial Sector (Collection of Data) Act 2001 Categories H and I (record as private trading corporations); and\n-   other financial corporations registered under the Financial Sector (Collection of Data) Act 2001 Category J (record as other financial institutions).\n\nInsurance corporations\n\n## The insurance corporations sector includes all corporations that provide insurance. Included are life, general, fire, accident, employer liability, household and consumer credit insurers and health insurance funds. These companies must be registered with APRA.\n\nInclude:\n\n-   benefit fund friendly societies that are regulated under the Life Insurance Act 1995; and\n-   Export Finance Insurance Corporation.\n\nExclude:\n\n-   health benefit funds of friendly societies that are regulated under the National Health Act 1959.\n\nPension funds\n\n## The pension funds sub-sector includes all superannuation funds that are regarded as complying funds for the purposes of the Superannuation Industry Supervision Act 1993 and other autonomous funds established for the benefit of public sector employees. Superannuation funds with all of their assets invested with insurance offices are included.\n\n## Superannuation funds and approved deposit funds (ADFs) are established to provide benefits for their members on retirement, resignation, death or disablement. Superannuation funds and ADFs usually take the legal form of trust funds.\n\nInclude:\n\n-   Pooled Superannuation Trusts;\n-   public sector superannuation funds (including SIS-exempt funds);\n-   private sector superannuation funds;\n-   ADFs; and\n-   superannuation funds established by life insurance companies.\n\nExclude:\n\n-   retirement savings accounts.\n\nOther financial institutions\n\n## The other financial institutions sector includes all financial institutions not recorded in the above financial corporations categories.\n\nInclude:\n\n-   financial auxiliaries such as fund managers as principal, stock brokers and insurance brokers;\n-   securitisers;\n-   mortgage, fixed interest and equity unit trusts;\n-   economic development corporations owned by governments;\n-   co-operative housing societies;\n-   other financial corporations registered under the Financial Sector (Collection of Data) Act 2001 Category J;\n-   investment companies; and\n-   common funds including cash common funds.\n\nExclude:\n\n-   cash management trusts (record as RFC); and\n-   property and trading trusts (record as private trading corporations).\n\n# Other\n\nThis comprises all other entities not classified as households, CSOs, non-financial corporations, and financial corporations.\n\nScope\n\nThe form covers the full range of problem exposures, which ADIs hold, and is not limited to problem loans.\n\nIn measuring off balance sheet credit exposures the following measurement policies should be adopted:\n\n1.  Include under balances outstanding for the appropriate impaired asset category (i.e. non-accrual or restructured items), the following:\n\n-   Any direct credit substitutes (e.g. guarantees, letters of credit, credit derivatives and endorsed bills of exchange as described in the ADI Off Balance Sheet Business Form). For example, where an ADI has guaranteed the financial obligations of a client, and there is reasonable doubt about the ultimate collectability of principal or interest, which the ADI has a contractual obligation to pay under the guarantee, it should be included in the appropriate impaired asset category.\n-   Any commitments, as described in the ADI Off Balance Sheet Business Form. For example, where there is reasonable doubt about the ultimate collectability of principal and interest relating to such commitments, or a provision established, then the balance of the outstanding commitment should be included in the appropriate impaired asset category.\n-   The credit equivalent amounts of market related off balance sheet transactions in the ADI Off Balance Sheet Business Form, which meet the definitions of impaired facilities. The credit equivalent amount must be calculated using the current exposure or mark-to-market method unless another method has been approved in advance by APRA. Potential credit add‑ons should reflect the nature of the individual exposure involved. Derivative transaction exposures should be revalued regularly so as to maintain reasonably current assessments of the extent of credit risk attaching to those transactions.\n\n2. When reporting the extent of specific provisions raised against all off balance sheet credit exposures, include those recorded in the notes to ADIs' published financial statements as \"other liabilities\".\n\n3. Unless otherwise instructed report:\n\n-   outstanding balances net of interest and other income not taken to profit, and net of any amounts written off;\n-   all items without any adjustment for credit conversion factors (except for market related off balance sheet transactions), risk weights, provisions, and/or collateral arrangements; and\n-   amounts net of offsetting balances available under legally eligible netting arrangements as outlined in Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk.\n\n4. Separately report amounts, where requested, recorded on Australian and overseas books. Guidance on the meaning of “on Australian and overseas books” is provided in the Instruction Guide ARF 320.0.\n\n  \nSpecific instructions\n\nPart 1A – Impaired facilities\n\nImpaired facilities are defined (refer to APS 220) as those items for which the ultimate collectability of principal and interest is compromised. Impaired facilities include all problem facilities, off-balance sheet exposures and assets brought on to an ADI’s balance sheet through enforcement of security provisions. They do not include any assets that have been accepted for regulatory purposes as having been cleanly sold for the purposes of APS 120.\n\nWhere a facility to a customer or group of related customers is impaired, all other exposures to that customer/group should be aggregated and classified as impaired, subject to exceptions in AGN 220.1 Impaired Facility Definitions (AGN 220.1).\n\nAPRA’s prudential standard on credit quality requires ADIs to classify their impaired facilities as (1) non accrual items, (2) restructured items or (3) other assets acquired through security enforcement (including other real estate owned)\n\nNon-accrual items\n\nFor the purposes of this return, non-accrual items are those impaired facilities where estimates of future interest income are zero.\n\nPlease refer to AGN 220.1 for more details.\n\nPerformance\n\nThe return asks ADIs to separately report those non‑accrual items that are subject to no (or immaterial), partial or full performance. APRA’s intention is to better understand the nature of items that ADIs might report as non‑accrual and to enable it to assess the potential impact on the ADI’s overall performance.\n\nNo performance – report those exposures on which the ADI is not receiving any material payments. This category should also capture exposures on which an ADI is receiving only sporadic payments.\n\nPartial performance – report those exposures on which the ADI is receiving partial payments relative to the required contractual obligations. Where partial performance is disclosed, ADIs should be able to identify a threshold of performance that defines this category. While it is not APRA’s intention to specify a minimum, the threshold chosen by the ADI should be sufficient to provide a meaningful distinction from the previous category (no performance).\n\nFull performance – report those exposures on which full payments are being received, but which have been placed on a non-accrual basis for another reason. That is, because some reasonable doubt exists about ultimate collectability of the exposure, a specific provision has been raised, or write down taken or some other reasons has prompted this action.\n\n  \nNon‑accrual items – with and without provisions\n\nADIs should separately report those facilities classified as non‑accrual against which specific provisions have been created and those non‑accrual items against which no specific provision is held. For those ADIs applying the prescribed provisioning methodology described in Guidance Note AGN 220.3 Prescribed Provisioning (AGN 220.3) and reported in terms of ARF 220.3 Prescribed Provisioning, provisions so created are regarded as specific in nature and should be reported as such on ARF 220.0.\n\nRestructured items\n\nA restructured item is defined as one in which the original contractual terms have been modified to provide for concessions of interest or principal for reasons related to the financial difficulties of a customer rendering the facility non-commercial to the ADI. In considering whether a facility is non-commercial, an ADI needs to consider whether it would extend credit on similar terms and conditions to a new borrower exhibiting similar risk characteristics. A formal (written) agreement must exist between the ADI and borrower before a facility can be classified restructured.\n\nIt is APRA’s general expectation that restructured facilities will not represent a substantial part of an ADI’s total assets.\n\nRestructured items – with and without provisions\n\nRestructured items should be split into those against which there are no specific provisions held and those with provisions that have arisen as part of the restructuring arrangement. The value of specific provisions held against the latter should also be reported. Report only those specific provisions raised prior to, or at the time of, the restructuring. If specific provisions are raised subsequent to the restructuring, the facility should be classified as non‑accrual. The category of restructured with specific provision is primarily designed to address those few instances where ADIs, in employing their problem asset management strategies, create a specific provision ahead of virtually certain write‑off. Please refer to AGN 220.1 for more details.\n\nIt is APRA’s general expectation that the extent of facilities reported in this category will be minor and unlikely to continue to be reported in this category for a long period of time.\n\nOther real estate owned (OREO)\n\nOREO is defined as real estate acquired by an ADI in full or partial settlement of a loan or similar facility through enforcement of security arrangements. This category excludes real estate acquired for occupation by ADI staff, and property controlled under “mortgagee in possession” rights. Please refer to AGN 220.1 for more details.\n\nReport holdings of OREO at fair value. The assets should continue to be reported until the ADI has disposed of the holding.\n\n  \nOther assets acquired through security enforcement\n\nThis category covers assets, other than real estate assets, acquired by an ADI in full or partial settlement of a loan or similar facility through enforcement of security arrangements (e.g. debt-for-equity swaps). Report the value of other assets acquired through security enforcement at fair value after taking into account any appropriate discount factor attributable to uncertain market liquidity conditions. This latter point reflects the likely lack of demand for the asset that has resulted in the ADI holding the asset as a consequence of its exposure recovery activity. Continue to report these assets until they have been sold or the entire exposure is written off.\n\nNew impaired facilities\n\nReport the value of exposures newly classified as impaired during the quarter.\n\nSpecific provisions\n\nAs noted above, report the amount of specific provisions held against the relevant categories for non‑accrual items, restructured items, OREO and other assets acquired through security enforcement.\n\nSecurity held against non-accrual items\n\nReport separately the total value of security held against non-accrual items depending upon whether specific provisions are held or not (items R00913 and R00914 respectively). Should any security held exceed the outstanding balance of an individual non-accrual item the excess should be excluded.\n\nSecurity held against restructured items\n\nReport separately the total value of security held against restructured items depending upon whether specific provisions are held or not (items R00915 and R00916 respectively). Should any security held exceed the outstanding balance of an individual restructured item the excess should be excluded.\n\nInterest/income received\n\nADIs are asked to report interest, fees, etc. actually received during the quarter from borrowers/counterparties in relation to those exposures classified as impaired (non‑accrual, restructured and assets acquired through security enforcement).\n\nIn some cases, ADIs may deem to have received income if there has been a debit to some form of working account. However, in order for this income to be recognised for the purposes of this return, the working account must:\n\n-   not be established for the sole purpose of meeting interest obligations;\n-   remain within approved limits; and\n-   exhibit the character of a working account implying that the account balance will fluctuate and not result in interest being continuously capitalised.\n\nADIs should calculate the effective interest rate being earned on restructured items by reference to the principal outstanding following restructuring (i.e. after taking into account write-offs, provisions that arise as part of the restructuring arrangement or repayments in the form of assets or equity). A restructured facility must be earning a rate of interest that is equal to or greater than the ADI’s average cost of funds at the date of the restructuring. If this is not the case, the facility should be classified as non-accrual.\n\nReport the value of income brought to account during the quarter from assets acquired through security enforcement (including other real estate owned). Any income received should be reported net of identifiable expenses (apart from funding costs) incurred in generating such income. Where, in aggregate, expenses exceed income received, report a negative balance.\n\nInterest/income forgone\n\nFor all categories of impaired facilities, report all interest/income foregone during the quarter. Interest/income foregone is defined as the difference between what the ADI would have received had the exposure performed as contracted and that interest/income actually received. ADIs are asked to report the extent of interest/income foregone on non‑accrual and restructured items for the relevant quarter covered by the return.\n\nPart 1B – Impaired facilities\n\nPart 1B classifies the total balance of impaired facilities by sector.\n\nPart 2A – Past due items\n\nAs items that are 90 days past due but well-secured[\\[6\\]](#_ftn6) represent a higher degree of risk than facilities meeting contractual arrangements, APRA requires ADIs to separately report these items. A facility subject to a regular repayment schedule is regarded as “90 days past due” when: (a) at least 90 calendar days have elapsed since the due date of a contractual payment which has not been met in full; and (b) the total amount outside contractual arrangements is equivalent to at least 90 days worth of contractual payments. Such a facility is regarded as well-secured when the ADI judges that the fair value of associated security is sufficient to ensure that the ADI will recover the entire amount owing. By way of example, and assuming monthly repayment instalments, if a contractual payment was made on 30 March, the facility is past due when the payment on 30 April is not made. Assuming no further payments and monthly instalments, the facility should be classified as 90 days past due on 30 July. ADIs will note that this represents 120 days since a payment was made but the equivalent of 90 days worth of contractual payments being past due.\n\nAn item ceases to be classified as past due when arrears have been reduced so that the exposure is no longer 90 days past due.\n\nIn the case of facilities that do not have a preset repayment schedule (e.g. overdrafts and revolving credit facilities), 90 days past due refers to the period where facilities have remained continuously outside approved arrangements but are well-secured.\n\nThe return asks ADIs to separately report those exposures that are individually managed and those that are managed on a portfolio basis.\n\nIndividually managed facilities\n\nThese are troublesome exposures that are managed on a transaction basis and typically subject to individual review. As discussed below, ADIs should separately report those facilities 90 days past due but well-secured in terms of different credit products common in the Australian financial system. That is, separately report these troublesome exposures as revolving credit, credit cards, housing loans, term loans, lease financing or other loans.\n\nPortfolio managed facilities\n\nExposures managed on a portfolio basis are typically homogenous and often approved and managed using statistical management techniques. Portfolio managed exposures are often not subject to formal regular review other than in cases where payments are behind agreed repayment schedules or indebtedness is outside approved limits.\n\nAny past due facilities managed on a portfolio basis can be excluded from the definition of impaired facilities and remain on an accrual basis until the dollar value of contractual payments is up to 180 days past due (i.e. six months worth of repayments). The commencement of the 180 days is to take place from the date on which the contractual payment of principal and/or interest is not met. Once the dollar amount of past due amounts represent 180 days of contractual payments, an ADI should decide whether it is prepared to subject the accounts to individual review or to write them off. If the ADI chooses to conduct individual reviews, then the facilities can remain on an accrual basis if the ADI is satisfied that the facility is well-secured. Where the facility is not well-secured, the ADI should immediately create an appropriate specific provision and move the facility to a non-accrual basis.\n\nADIs managing facilities on a portfolio basis should report the total value of facilities 90 days past due but less than 180 days past due. As for individually managed facilities, ADIs should separately report in terms of loan type. For all category of loan product sought, distinguish between those exposures that are recorded on Australian or overseas books.\n\nTo provide APRA with a basis upon which to gauge the degree of delinquency in facilities managed on a portfolio basis, ADIs should separately report the total portfolio size in terms of the individual credit product type specified below. APRA also asks those ADIs managing facilities on a portfolio basis to indicate the extent of portfolio-related provisions that have been created with respect to those facilities that are less than 90 days past due.\n\nRevolving credit\n\nA revolving credit is a credit facility that is typically approved for a given period of time but does not have a fixed repayment schedule.\n\nReport the total outstanding balance of loans of a revolving credit nature that fall within the definition of the relevant category of past due reporting. Exclude loans to Australian householders for the purpose of housing (e.g. equity lines of credit secured by residential property). Facilities of this nature should be reported under “Housing loans”.\n\nCredit cards\n\nCredit cards are a common consumer credit arrangement that allows the consumer the option of borrowing against a pre‑approved line of credit. They are typically unsecured.\n\nReport the total outstanding balance of credit card facilities that are outside contractual arrangements for more than 90 consecutive days but are well-secured under the heading “Individually managed facilities”. Any credit card facility that is not well-secured but is outside contractual arrangements for more than 90 consecutive days should be classified as non\\-accrual unless it is managed as part of a portfolio as described in paragraph 4 of AGN 220.1.\n\nReport the total outstanding balance of credit card facilities that are managed on a portfolio basis but are more than 90 days past due and less than 180 days past due.\n\nHousing loans\n\nFor the purpose of this return, housing loans are those facilities, both amortising and line of credit that are primarily secured by a registered mortgage over a residential property. They may be for any purpose including the construction, purchase of dwellings for owner occupation or investment or commercial ventures.\n\nReport the total outstanding balance of housing loans that are past due in accordance with whether facilities are managed on an individual or portfolio basis.\n\nTerm loans\n\nReport the total outstanding balance of loans that have a fixed term and are past due in terms of the above guidance. Exclude loans to householders for the purpose of housing.\n\nLease financing\n\nLeasing finance is a method of financing the acquisition of an asset (e.g. motor vehicle or business equipment) by the user under which the ADI buys the asset from a third party and leases it to the user in return for lease rental payments. A component of the lease rental payment relates to interest and another component to the reduction of principal.\n\nReport the total outstanding balance of lease financing that is outside contractual arrangements in line with the preceding guidance.\n\nOther loans\n\nReport the total outstanding balance of loans that satisfy the preceding criteria with respect to being 90 days past due or more that cannot be readily classified in the other credit product types.\n\nFacilities for which a prescribed provision is raised\n\nAll facilities against which an ADI is required to raise a prescribed provision in terms of AGN 220.3 will need to be recognised as a non‑accrual item for the purposes of this return and in its financial accounts. ADIs applying the prescribed provisioning methodology should be particularly alert to those Category Four Facilities that are irregular for more than 14 days. Facilities in this category must be reported as non‑accrual from the date that the prescribed provision is struck (i.e. once the facility is irregular for more than 14 days).\n\nPart 2B – Past due items\n\nPart 2B classifies the total amount of past due items by sector.","sortOrder":36},{"sectionNumber":"ADIs","sectionType":"division","heading":"ADIs","content":"### ADIs\n\nADIs refers to corporations in relation to which an authority under subsection 9(3) is in force.\n\nInclude:\n\n-   development banks; and\n-   foreign banks licensed to operate in Australia under the Banking Act 1959.\n\nExclude:\n\n-   merchant banks (record as Registered Financial Corporations (RFCs)); and\n-   non-resident banks (record as non-resident counterparties).\n\nRFCs","sortOrder":37},{"sectionNumber":"RFCs refers to corporations registered u","sectionType":"part","heading":"RFCs refers to corporations registered under the Financial Sector (Collection of Data) Act 2001 that are classified to Categories D through G and cash management trusts.","content":"## RFCs refers to corporations registered under the Financial Sector (Collection of Data) Act 2001 that are classified to Categories D through G and cash management trusts.\n\nInclude:\n\n-   money market corporations (also referred to as \"merchant banks\") (D);\n-   pastoral finance companies (E);\n-   finance companies (F);\n-   general financiers (G); and\n-   cash management trusts.","sortOrder":38},{"sectionNumber":"A list of corporations registered under ","sectionType":"part","heading":"A list of corporations registered under the Financial Sector (Collection of Data) Act 2001 and their classification are available on request.","content":"## A list of corporations registered under the Financial Sector (Collection of Data) Act 2001 and their classification are available on request.\n\n  \nExclude:\n\n-   intra group financiers and retailers registered under the Financial Sector (Collection of Data) Act 2001 Categories H and I (record as private trading corporations); and\n-   other financial corporations registered under the Financial Sector (Collection of Data) Act 2001 Category J (record as other financial institutions).\n\nInsurance corporations","sortOrder":39},{"sectionNumber":"The insurance corporations sector includ","sectionType":"part","heading":"The insurance corporations sector includes all corporations that provide insurance. Included are life, general, fire, accident, employer liability, household and consumer credit insurers and health insurance funds. These companies must be registered with APRA.","content":"## The insurance corporations sector includes all corporations that provide insurance. Included are life, general, fire, accident, employer liability, household and consumer credit insurers and health insurance funds. These companies must be registered with APRA.\n\nInclude:\n\n-   benefit fund friendly societies that are regulated under the Life Insurance Act 1995; and\n-   Export Finance Insurance Corporation.\n\nExclude:\n\n-   health benefit funds of friendly societies that are regulated under the National Health Act 1959.\n\nPension funds","sortOrder":40},{"sectionNumber":"The pension funds sub-sector includes al","sectionType":"part","heading":"The pension funds sub-sector includes all superannuation funds that are regarded as complying funds for the purposes of the Superannuation Industry Supervision Act 1993 and other autonomous funds established for the benefit of public sector employees. Superannuation funds with all of their assets invested with insurance offices are included.","content":"Reporting Form ARF 220.0\n\nImpaired Facilities\n\n# Instruction Guide\n\nGeneral directions and notes\n\nReporting entity\n\nThis form is to be completed by all authorised deposit-taking institutions (ADIs) (other than Specialist Credit Card Institutions (SCCIs) that engage only in credit card acquiring activities) on both a licensed ADI and consolidated ADI group basis (where applicable).\n\nBranches of foreign banks and SCCIs operating through branches in Australia are required to complete this form for the Australian branch only.\n\n#### Licensed ADI\n\nThis refers to the operations of the reporting ADI on a stand-alone basis.\n\nSecuritisation deconsolidation principle\n\nExcept as otherwise specified in these instructions, the following applies:\n\n1.  Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that meets APRA’s operational requirements for regulatory capital relief under Prudential Standard APS 120 Securitisation (APS 120):\n\n(a) special purpose vehicles (SPVs) holding securitised assets may be treated as non-consolidated independent third parties for regulatory reporting purposes, irrespective of whether the SPVs (or their assets) are consolidated for accounting purposes;\n\n(b) the assets, liabilities, revenues and expenses of the relevant SPVs may be excluded from the ADI’s reported amounts in APRA’s regulatory reporting returns; and\n\n(c) the underlying exposures (i.e. the pool) under such a securitisation may be excluded from the calculation of the ADI’s regulatory capital (refer to APS 120). However, the ADI must still hold regulatory capital for the securitisation exposures[\\[3\\]](#_ftn3) that it retains or acquires and such exposures are to be reported in Form ARF 120.0 Standardised – Securitisation or Forms ARF 120.1A to ARF 120.1C IRB – Securitisation (as appropriate). The RWA relating to such securitisation exposures must also be reported in Form ARF 110.0 Capital Adequacy (ARF 110.0).\n\n2. Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that does not meet APRA’s operational requirements for regulatory capital relief under APS 120, or the ADI elects to treat the securitised assets as on-balance sheet assets under Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk or Prudential Standard APS 113 Capital Adequacy: Internal Ratings-based Approach to Credit Risk, such exposures are to be reported as on-balance sheet assets in APRA’s regulatory reporting returns. In addition, these exposures must also be reported as a part of the ADI’s total securitised assets within Form ARF 120.2 Securitisation – Supplementary Items.\n\n#### Consolidated ADI group\n\nThis refers to the consolidated group of the reporting ADI at Level 2 (i.e. the consolidated banking group level) defined in accordance with the ADI Prudential Standard APS 110 Capital Adequacy.\n\nThe basis of consolidation required in this form is in accordance with the prudential consolidated ADI group. The prudential consolidated group should also be determined in accordance with Australian accounting standards, notably AASB 127 Consolidated and Separate Financial Statements with the following modifications:\n\n1.  Include the following:\n\n-   all controlled banking entities, securities entities and other financial entities (e.g. finance companies, money market corporations, stockbrokers and leasing companies).\n\n2. Exclude subsidiary entities involved in the following business activities:\n\n-   insurance businesses (including friendly societies and health funds);\n-   acting as manager, responsible entity, approved trustee, trustee or similar role in relation to funds management or the securitisation of assets;\n-   non-financial (commercial) operations; and\n-   special purpose vehicles whose assets have satisfied the clean sale requirements in APS 120).\n\nReporting period\n\nThe form is to be completed as at the last day of the stated reporting quarter. Australian-owned banks, foreign subsidiary banks, branches of foreign banks and other ADIs should submit the completed form to APRA within 20 business days after the end of the relevant reporting quarter. Credit Unions, Cairns Penny Savings & Loans Limited, Building Societies and SCCIs should submit the completed form to APRA within 15 business days after the end of the relevant reporting quarter.\n\n  \nUnit of measurement\n\nBanks are asked to complete the form in millions of Australian dollars rounded to one decimal place, and for other ADIs, in whole Australian dollars (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 outstanding at the reporting date must be translated at the spot rate at the reporting date;[\\[4\\]](#_ftn4)\n2.  foreign currency non-monetary items that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction;[\\[5\\]](#_ftn5)\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 basis\n\nParts 1A and 2A are to be completed on an “audited” basis while Parts 1B and 2B are to be completed on a “best endeavours” basis.\n\nGuidance\n\nPlease refer to APS 220 Credit Quality (APS 220) and its associated Guidance Notes when completing this form.\n\nClassification schema\n\nThe classification scheme used in ARF 220.0 Impaired Facilities (ARF 220.0) is consistent with the classification scheme used in ARF 320.0 Statement of Financial Position (Domestic Books) (ARF 320) and ARF 323.0 Statement of Financial Position (Licensed ADI) (ARF 323.0).\n\n## Resident/non-resident classification\n\n-   An Australian resident is any individual, business or other organisation domiciled in Australia. Australian branches and Australian subsidiaries of foreign businesses are regarded as Australian residents.\n-   A non-resident is any individual, business or other organisation domiciled overseas. Foreign branches and foreign subsidiaries of Australian businesses are regarded as non-residents.\n\nSector definitions\n\n# Households\n\nThis comprises individuals, or groups of individuals, resident in Australia whose dealings with other sectors are for personal or household purposes.\n\n  \nExclude:\n\n-   sole proprietors, partnerships, family trusts, and any other unincorporated enterprises owned by households (record as private unincorporated businesses).\n\n# Community service organisations (CSOs)\n\nInclude:\n\n-   institutions financed mostly by members’ contributions, e.g. trade unions, professional societies, consumer associations, political parties, churches and religious societies, and social, cultural, recreational and sports clubs; and\n-   charities and aid organisations financed by voluntary transfers.\n\nExclude:\n\n-   CSOs and non-profit institutions controlled and mainly financed by government (record as other).\n\nNon-financial corporations\n\nThis comprises private trading corporations and private unincorporated businesses.\n\nPrivate trading corporations\n\nPrivate trading corporations are those owned and controlled by the private sector whose main activity is producing goods or non-financial services for sale.\n\nInclude:\n\n-   all resident private corporate trading enterprises, and non-profit institutions that are market producers of goods or non-financial services;\n-   intra-group financiers (Financial Sector (Collection of Data) Act 2001 category I), retailers (Financial Sector (Collection of Data) Act 2001 category H) and parent companies with significant holdings of shares in private trading companies;\n-   privately owned schools and hospitals;\n-   any unincorporated unit that is a branch in Australia of a non-resident company and which is not included in the financial sector; and\n-   any unincorporated business owned and operated by trading corporations (e.g. joint ventures).\n\nExclude:\n\n-   unincorporated businesses, except for branches of non-resident companies and joint ventures or partnerships owned by corporations; and\n-   non-resident enterprises.\n\n### Private unincorporated businesses\n\nThis comprises individuals acting as sole proprietors or in partnerships, for commercial or professional purposes. The major businesses to be included in this sub-sector are unincorporated farms, unincorporated retailers, unincorporated professional practices (medical, legal, dental, accounting, etc.), unincorporated businesses of tradesmen such as plumbers, carpenters, etc.\n\n# Financial corporations\n\n### ADIs\n\nADIs refers to corporations in relation to which an authority under subsection 9(3) is in force.\n\nInclude:\n\n-   development banks; and\n-   foreign banks licensed to operate in Australia under the Banking Act 1959.\n\nExclude:\n\n-   merchant banks (record as Registered Financial Corporations (RFCs)); and\n-   non-resident banks (record as non-resident counterparties).\n\nRFCs\n\n## RFCs refers to corporations registered under the Financial Sector (Collection of Data) Act 2001 that are classified to Categories D through G and cash management trusts.\n\nInclude:\n\n-   money market corporations (also referred to as \"merchant banks\") (D);\n-   pastoral finance companies (E);\n-   finance companies (F);\n-   general financiers (G); and\n-   cash management trusts.\n\n## A list of corporations registered under the Financial Sector (Collection of Data) Act 2001 and their classification are available on request.\n\n  \nExclude:\n\n-   intra group financiers and retailers registered under the Financial Sector (Collection of Data) Act 2001 Categories H and I (record as private trading corporations); and\n-   other financial corporations registered under the Financial Sector (Collection of Data) Act 2001 Category J (record as other financial institutions).\n\nInsurance corporations\n\n## The insurance corporations sector includes all corporations that provide insurance. Included are life, general, fire, accident, employer liability, household and consumer credit insurers and health insurance funds. These companies must be registered with APRA.\n\nInclude:\n\n-   benefit fund friendly societies that are regulated under the Life Insurance Act 1995; and\n-   Export Finance Insurance Corporation.\n\nExclude:\n\n-   health benefit funds of friendly societies that are regulated under the National Health Act 1959.\n\nPension funds\n\n## The pension funds sub-sector includes all superannuation funds that are regarded as complying funds for the purposes of the Superannuation Industry Supervision Act 1993 and other autonomous funds established for the benefit of public sector employees. Superannuation funds with all of their assets invested with insurance offices are included.\n\n## Superannuation funds and approved deposit funds (ADFs) are established to provide benefits for their members on retirement, resignation, death or disablement. Superannuation funds and ADFs usually take the legal form of trust funds.\n\nInclude:\n\n-   Pooled Superannuation Trusts;\n-   public sector superannuation funds (including SIS-exempt funds);\n-   private sector superannuation funds;\n-   ADFs; and\n-   superannuation funds established by life insurance companies.\n\nExclude:\n\n-   retirement savings accounts.\n\nOther financial institutions\n\n## The other financial institutions sector includes all financial institutions not recorded in the above financial corporations categories.\n\nInclude:\n\n-   financial auxiliaries such as fund managers as principal, stock brokers and insurance brokers;\n-   securitisers;\n-   mortgage, fixed interest and equity unit trusts;\n-   economic development corporations owned by governments;\n-   co-operative housing societies;\n-   other financial corporations registered under the Financial Sector (Collection of Data) Act 2001 Category J;\n-   investment companies; and\n-   common funds including cash common funds.\n\nExclude:\n\n-   cash management trusts (record as RFC); and\n-   property and trading trusts (record as private trading corporations).\n\n# Other\n\nThis comprises all other entities not classified as households, CSOs, non-financial corporations, and financial corporations.\n\nScope\n\nThe form covers the full range of problem exposures, which ADIs hold, and is not limited to problem loans.\n\nIn measuring off balance sheet credit exposures the following measurement policies should be adopted:\n\n1.  Include under balances outstanding for the appropriate impaired asset category (i.e. non-accrual or restructured items), the following:\n\n-   Any direct credit substitutes (e.g. guarantees, letters of credit, credit derivatives and endorsed bills of exchange as described in the ADI Off Balance Sheet Business Form). For example, where an ADI has guaranteed the financial obligations of a client, and there is reasonable doubt about the ultimate collectability of principal or interest, which the ADI has a contractual obligation to pay under the guarantee, it should be included in the appropriate impaired asset category.\n-   Any commitments, as described in the ADI Off Balance Sheet Business Form. For example, where there is reasonable doubt about the ultimate collectability of principal and interest relating to such commitments, or a provision established, then the balance of the outstanding commitment should be included in the appropriate impaired asset category.\n-   The credit equivalent amounts of market related off balance sheet transactions in the ADI Off Balance Sheet Business Form, which meet the definitions of impaired facilities. The credit equivalent amount must be calculated using the current exposure or mark-to-market method unless another method has been approved in advance by APRA. Potential credit add‑ons should reflect the nature of the individual exposure involved. Derivative transaction exposures should be revalued regularly so as to maintain reasonably current assessments of the extent of credit risk attaching to those transactions.\n\n2. When reporting the extent of specific provisions raised against all off balance sheet credit exposures, include those recorded in the notes to ADIs' published financial statements as \"other liabilities\".\n\n3. Unless otherwise instructed report:\n\n-   outstanding balances net of interest and other income not taken to profit, and net of any amounts written off;\n-   all items without any adjustment for credit conversion factors (except for market related off balance sheet transactions), risk weights, provisions, and/or collateral arrangements; and\n-   amounts net of offsetting balances available under legally eligible netting arrangements as outlined in Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk.\n\n4. Separately report amounts, where requested, recorded on Australian and overseas books. Guidance on the meaning of “on Australian and overseas books” is provided in the Instruction Guide ARF 320.0.\n\n  \nSpecific instructions\n\nPart 1A – Impaired facilities\n\nImpaired facilities are defined (refer to APS 220) as those items for which the ultimate collectability of principal and interest is compromised. Impaired facilities include all problem facilities, off-balance sheet exposures and assets brought on to an ADI’s balance sheet through enforcement of security provisions. They do not include any assets that have been accepted for regulatory purposes as having been cleanly sold for the purposes of APS 120.\n\nWhere a facility to a customer or group of related customers is impaired, all other exposures to that customer/group should be aggregated and classified as impaired, subject to exceptions in AGN 220.1 Impaired Facility Definitions (AGN 220.1).\n\nAPRA’s prudential standard on credit quality requires ADIs to classify their impaired facilities as (1) non accrual items, (2) restructured items or (3) other assets acquired through security enforcement (including other real estate owned)\n\nNon-accrual items\n\nFor the purposes of this return, non-accrual items are those impaired facilities where estimates of future interest income are zero.\n\nPlease refer to AGN 220.1 for more details.\n\nPerformance\n\nThe return asks ADIs to separately report those non‑accrual items that are subject to no (or immaterial), partial or full performance. APRA’s intention is to better understand the nature of items that ADIs might report as non‑accrual and to enable it to assess the potential impact on the ADI’s overall performance.\n\nNo performance – report those exposures on which the ADI is not receiving any material payments. This category should also capture exposures on which an ADI is receiving only sporadic payments.\n\nPartial performance – report those exposures on which the ADI is receiving partial payments relative to the required contractual obligations. Where partial performance is disclosed, ADIs should be able to identify a threshold of performance that defines this category. While it is not APRA’s intention to specify a minimum, the threshold chosen by the ADI should be sufficient to provide a meaningful distinction from the previous category (no performance).\n\nFull performance – report those exposures on which full payments are being received, but which have been placed on a non-accrual basis for another reason. That is, because some reasonable doubt exists about ultimate collectability of the exposure, a specific provision has been raised, or write down taken or some other reasons has prompted this action.\n\n  \nNon‑accrual items – with and without provisions\n\nADIs should separately report those facilities classified as non‑accrual against which specific provisions have been created and those non‑accrual items against which no specific provision is held. For those ADIs applying the prescribed provisioning methodology described in Guidance Note AGN 220.3 Prescribed Provisioning (AGN 220.3) and reported in terms of ARF 220.3 Prescribed Provisioning, provisions so created are regarded as specific in nature and should be reported as such on ARF 220.0.\n\nRestructured items\n\nA restructured item is defined as one in which the original contractual terms have been modified to provide for concessions of interest or principal for reasons related to the financial difficulties of a customer rendering the facility non-commercial to the ADI. In considering whether a facility is non-commercial, an ADI needs to consider whether it would extend credit on similar terms and conditions to a new borrower exhibiting similar risk characteristics. A formal (written) agreement must exist between the ADI and borrower before a facility can be classified restructured.\n\nIt is APRA’s general expectation that restructured facilities will not represent a substantial part of an ADI’s total assets.\n\nRestructured items – with and without provisions\n\nRestructured items should be split into those against which there are no specific provisions held and those with provisions that have arisen as part of the restructuring arrangement. The value of specific provisions held against the latter should also be reported. Report only those specific provisions raised prior to, or at the time of, the restructuring. If specific provisions are raised subsequent to the restructuring, the facility should be classified as non‑accrual. The category of restructured with specific provision is primarily designed to address those few instances where ADIs, in employing their problem asset management strategies, create a specific provision ahead of virtually certain write‑off. Please refer to AGN 220.1 for more details.\n\nIt is APRA’s general expectation that the extent of facilities reported in this category will be minor and unlikely to continue to be reported in this category for a long period of time.\n\nOther real estate owned (OREO)\n\nOREO is defined as real estate acquired by an ADI in full or partial settlement of a loan or similar facility through enforcement of security arrangements. This category excludes real estate acquired for occupation by ADI staff, and property controlled under “mortgagee in possession” rights. Please refer to AGN 220.1 for more details.\n\nReport holdings of OREO at fair value. The assets should continue to be reported until the ADI has disposed of the holding.\n\n  \nOther assets acquired through security enforcement\n\nThis category covers assets, other than real estate assets, acquired by an ADI in full or partial settlement of a loan or similar facility through enforcement of security arrangements (e.g. debt-for-equity swaps). Report the value of other assets acquired through security enforcement at fair value after taking into account any appropriate discount factor attributable to uncertain market liquidity conditions. This latter point reflects the likely lack of demand for the asset that has resulted in the ADI holding the asset as a consequence of its exposure recovery activity. Continue to report these assets until they have been sold or the entire exposure is written off.\n\nNew impaired facilities\n\nReport the value of exposures newly classified as impaired during the quarter.\n\nSpecific provisions\n\nAs noted above, report the amount of specific provisions held against the relevant categories for non‑accrual items, restructured items, OREO and other assets acquired through security enforcement.\n\nSecurity held against non-accrual items\n\nReport separately the total value of security held against non-accrual items depending upon whether specific provisions are held or not (items R00913 and R00914 respectively). Should any security held exceed the outstanding balance of an individual non-accrual item the excess should be excluded.\n\nSecurity held against restructured items\n\nReport separately the total value of security held against restructured items depending upon whether specific provisions are held or not (items R00915 and R00916 respectively). Should any security held exceed the outstanding balance of an individual restructured item the excess should be excluded.\n\nInterest/income received\n\nADIs are asked to report interest, fees, etc. actually received during the quarter from borrowers/counterparties in relation to those exposures classified as impaired (non‑accrual, restructured and assets acquired through security enforcement).\n\nIn some cases, ADIs may deem to have received income if there has been a debit to some form of working account. However, in order for this income to be recognised for the purposes of this return, the working account must:\n\n-   not be established for the sole purpose of meeting interest obligations;\n-   remain within approved limits; and\n-   exhibit the character of a working account implying that the account balance will fluctuate and not result in interest being continuously capitalised.\n\nADIs should calculate the effective interest rate being earned on restructured items by reference to the principal outstanding following restructuring (i.e. after taking into account write-offs, provisions that arise as part of the restructuring arrangement or repayments in the form of assets or equity). A restructured facility must be earning a rate of interest that is equal to or greater than the ADI’s average cost of funds at the date of the restructuring. If this is not the case, the facility should be classified as non-accrual.\n\nReport the value of income brought to account during the quarter from assets acquired through security enforcement (including other real estate owned). Any income received should be reported net of identifiable expenses (apart from funding costs) incurred in generating such income. Where, in aggregate, expenses exceed income received, report a negative balance.\n\nInterest/income forgone\n\nFor all categories of impaired facilities, report all interest/income foregone during the quarter. Interest/income foregone is defined as the difference between what the ADI would have received had the exposure performed as contracted and that interest/income actually received. ADIs are asked to report the extent of interest/income foregone on non‑accrual and restructured items for the relevant quarter covered by the return.\n\nPart 1B – Impaired facilities\n\nPart 1B classifies the total balance of impaired facilities by sector.\n\nPart 2A – Past due items\n\nAs items that are 90 days past due but well-secured[\\[6\\]](#_ftn6) represent a higher degree of risk than facilities meeting contractual arrangements, APRA requires ADIs to separately report these items. A facility subject to a regular repayment schedule is regarded as “90 days past due” when: (a) at least 90 calendar days have elapsed since the due date of a contractual payment which has not been met in full; and (b) the total amount outside contractual arrangements is equivalent to at least 90 days worth of contractual payments. Such a facility is regarded as well-secured when the ADI judges that the fair value of associated security is sufficient to ensure that the ADI will recover the entire amount owing. By way of example, and assuming monthly repayment instalments, if a contractual payment was made on 30 March, the facility is past due when the payment on 30 April is not made. Assuming no further payments and monthly instalments, the facility should be classified as 90 days past due on 30 July. ADIs will note that this represents 120 days since a payment was made but the equivalent of 90 days worth of contractual payments being past due.\n\nAn item ceases to be classified as past due when arrears have been reduced so that the exposure is no longer 90 days past due.\n\nIn the case of facilities that do not have a preset repayment schedule (e.g. overdrafts and revolving credit facilities), 90 days past due refers to the period where facilities have remained continuously outside approved arrangements but are well-secured.\n\nThe return asks ADIs to separately report those exposures that are individually managed and those that are managed on a portfolio basis.\n\nIndividually managed facilities\n\nThese are troublesome exposures that are managed on a transaction basis and typically subject to individual review. As discussed below, ADIs should separately report those facilities 90 days past due but well-secured in terms of different credit products common in the Australian financial system. That is, separately report these troublesome exposures as revolving credit, credit cards, housing loans, term loans, lease financing or other loans.\n\nPortfolio managed facilities\n\nExposures managed on a portfolio basis are typically homogenous and often approved and managed using statistical management techniques. Portfolio managed exposures are often not subject to formal regular review other than in cases where payments are behind agreed repayment schedules or indebtedness is outside approved limits.\n\nAny past due facilities managed on a portfolio basis can be excluded from the definition of impaired facilities and remain on an accrual basis until the dollar value of contractual payments is up to 180 days past due (i.e. six months worth of repayments). The commencement of the 180 days is to take place from the date on which the contractual payment of principal and/or interest is not met. Once the dollar amount of past due amounts represent 180 days of contractual payments, an ADI should decide whether it is prepared to subject the accounts to individual review or to write them off. If the ADI chooses to conduct individual reviews, then the facilities can remain on an accrual basis if the ADI is satisfied that the facility is well-secured. Where the facility is not well-secured, the ADI should immediately create an appropriate specific provision and move the facility to a non-accrual basis.\n\nADIs managing facilities on a portfolio basis should report the total value of facilities 90 days past due but less than 180 days past due. As for individually managed facilities, ADIs should separately report in terms of loan type. For all category of loan product sought, distinguish between those exposures that are recorded on Australian or overseas books.\n\nTo provide APRA with a basis upon which to gauge the degree of delinquency in facilities managed on a portfolio basis, ADIs should separately report the total portfolio size in terms of the individual credit product type specified below. APRA also asks those ADIs managing facilities on a portfolio basis to indicate the extent of portfolio-related provisions that have been created with respect to those facilities that are less than 90 days past due.\n\nRevolving credit\n\nA revolving credit is a credit facility that is typically approved for a given period of time but does not have a fixed repayment schedule.\n\nReport the total outstanding balance of loans of a revolving credit nature that fall within the definition of the relevant category of past due reporting. Exclude loans to Australian householders for the purpose of housing (e.g. equity lines of credit secured by residential property). Facilities of this nature should be reported under “Housing loans”.\n\nCredit cards\n\nCredit cards are a common consumer credit arrangement that allows the consumer the option of borrowing against a pre‑approved line of credit. They are typically unsecured.\n\nReport the total outstanding balance of credit card facilities that are outside contractual arrangements for more than 90 consecutive days but are well-secured under the heading “Individually managed facilities”. Any credit card facility that is not well-secured but is outside contractual arrangements for more than 90 consecutive days should be classified as non\\-accrual unless it is managed as part of a portfolio as described in paragraph 4 of AGN 220.1.\n\nReport the total outstanding balance of credit card facilities that are managed on a portfolio basis but are more than 90 days past due and less than 180 days past due.\n\nHousing loans\n\nFor the purpose of this return, housing loans are those facilities, both amortising and line of credit that are primarily secured by a registered mortgage over a residential property. They may be for any purpose including the construction, purchase of dwellings for owner occupation or investment or commercial ventures.\n\nReport the total outstanding balance of housing loans that are past due in accordance with whether facilities are managed on an individual or portfolio basis.\n\nTerm loans\n\nReport the total outstanding balance of loans that have a fixed term and are past due in terms of the above guidance. Exclude loans to householders for the purpose of housing.\n\nLease financing\n\nLeasing finance is a method of financing the acquisition of an asset (e.g. motor vehicle or business equipment) by the user under which the ADI buys the asset from a third party and leases it to the user in return for lease rental payments. A component of the lease rental payment relates to interest and another component to the reduction of principal.\n\nReport the total outstanding balance of lease financing that is outside contractual arrangements in line with the preceding guidance.\n\nOther loans\n\nReport the total outstanding balance of loans that satisfy the preceding criteria with respect to being 90 days past due or more that cannot be readily classified in the other credit product types.\n\nFacilities for which a prescribed provision is raised\n\nAll facilities against which an ADI is required to raise a prescribed provision in terms of AGN 220.3 will need to be recognised as a non‑accrual item for the purposes of this return and in its financial accounts. ADIs applying the prescribed provisioning methodology should be particularly alert to those Category Four Facilities that are irregular for more than 14 days. Facilities in this category must be reported as non‑accrual from the date that the prescribed provision is struck (i.e. once the facility is irregular for more than 14 days).\n\nPart 2B – Past due items\n\nPart 2B classifies the total amount of past due items by sector.","sortOrder":41},{"sectionNumber":"Superannuation funds and approved deposi","sectionType":"part","heading":"Superannuation funds and approved deposit funds (ADFs) are established to provide benefits for their members on retirement, resignation, death or disablement. Superannuation funds and ADFs usually take the legal form of trust funds.","content":"## Superannuation funds and approved deposit funds (ADFs) are established to provide benefits for their members on retirement, resignation, death or disablement. Superannuation funds and ADFs usually take the legal form of trust funds.\n\nInclude:\n\n-   Pooled Superannuation Trusts;\n-   public sector superannuation funds (including SIS-exempt funds);\n-   private sector superannuation funds;\n-   ADFs; and\n-   superannuation funds established by life insurance companies.\n\nExclude:\n\n-   retirement savings accounts.\n\nOther financial institutions","sortOrder":42},{"sectionNumber":"The other financial institutions sector ","sectionType":"part","heading":"The other financial institutions sector includes all financial institutions not recorded in the above financial corporations categories.","content":"## The other financial institutions sector includes all financial institutions not recorded in the above financial corporations categories.\n\nInclude:\n\n-   financial auxiliaries such as fund managers as principal, stock brokers and insurance brokers;\n-   securitisers;\n-   mortgage, fixed interest and equity unit trusts;\n-   economic development corporations owned by governments;\n-   co-operative housing societies;\n-   other financial corporations registered under the Financial Sector (Collection of Data) Act 2001 Category J;\n-   investment companies; and\n-   common funds including cash common funds.\n\nExclude:\n\n-   cash management trusts (record as RFC); and\n-   property and trading trusts (record as private trading corporations).","sortOrder":43},{"sectionNumber":"Other","sectionType":"part","heading":"Other","content":"# Other\n\nThis comprises all other entities not classified as households, CSOs, non-financial corporations, and financial corporations.\n\nScope\n\nThe form covers the full range of problem exposures, which ADIs hold, and is not limited to problem loans.\n\nIn measuring off balance sheet credit exposures the following measurement policies should be adopted:\n\n1.  Include under balances outstanding for the appropriate impaired asset category (i.e. non-accrual or restructured items), the following:\n\n-   Any direct credit substitutes (e.g. guarantees, letters of credit, credit derivatives and endorsed bills of exchange as described in the ADI Off Balance Sheet Business Form). For example, where an ADI has guaranteed the financial obligations of a client, and there is reasonable doubt about the ultimate collectability of principal or interest, which the ADI has a contractual obligation to pay under the guarantee, it should be included in the appropriate impaired asset category.\n-   Any commitments, as described in the ADI Off Balance Sheet Business Form. For example, where there is reasonable doubt about the ultimate collectability of principal and interest relating to such commitments, or a provision established, then the balance of the outstanding commitment should be included in the appropriate impaired asset category.\n-   The credit equivalent amounts of market related off balance sheet transactions in the ADI Off Balance Sheet Business Form, which meet the definitions of impaired facilities. The credit equivalent amount must be calculated using the current exposure or mark-to-market method unless another method has been approved in advance by APRA. Potential credit add‑ons should reflect the nature of the individual exposure involved. Derivative transaction exposures should be revalued regularly so as to maintain reasonably current assessments of the extent of credit risk attaching to those transactions.\n\n2. When reporting the extent of specific provisions raised against all off balance sheet credit exposures, include those recorded in the notes to ADIs' published financial statements as \"other liabilities\".\n\n3. Unless otherwise instructed report:\n\n-   outstanding balances net of interest and other income not taken to profit, and net of any amounts written off;\n-   all items without any adjustment for credit conversion factors (except for market related off balance sheet transactions), risk weights, provisions, and/or collateral arrangements; and\n-   amounts net of offsetting balances available under legally eligible netting arrangements as outlined in Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk.\n\n4. Separately report amounts, where requested, recorded on Australian and overseas books. Guidance on the meaning of “on Australian and overseas books” is provided in the Instruction Guide ARF 320.0.\n\n  \nSpecific instructions\n\nPart 1A – Impaired facilities\n\nImpaired facilities are defined (refer to APS 220) as those items for which the ultimate collectability of principal and interest is compromised. Impaired facilities include all problem facilities, off-balance sheet exposures and assets brought on to an ADI’s balance sheet through enforcement of security provisions. They do not include any assets that have been accepted for regulatory purposes as having been cleanly sold for the purposes of APS 120.\n\nWhere a facility to a customer or group of related customers is impaired, all other exposures to that customer/group should be aggregated and classified as impaired, subject to exceptions in AGN 220.1 Impaired Facility Definitions (AGN 220.1).\n\nAPRA’s prudential standard on credit quality requires ADIs to classify their impaired facilities as (1) non accrual items, (2) restructured items or (3) other assets acquired through security enforcement (including other real estate owned)\n\nNon-accrual items\n\nFor the purposes of this return, non-accrual items are those impaired facilities where estimates of future interest income are zero.\n\nPlease refer to AGN 220.1 for more details.\n\nPerformance\n\nThe return asks ADIs to separately report those non‑accrual items that are subject to no (or immaterial), partial or full performance. APRA’s intention is to better understand the nature of items that ADIs might report as non‑accrual and to enable it to assess the potential impact on the ADI’s overall performance.\n\nNo performance – report those exposures on which the ADI is not receiving any material payments. This category should also capture exposures on which an ADI is receiving only sporadic payments.\n\nPartial performance – report those exposures on which the ADI is receiving partial payments relative to the required contractual obligations. Where partial performance is disclosed, ADIs should be able to identify a threshold of performance that defines this category. While it is not APRA’s intention to specify a minimum, the threshold chosen by the ADI should be sufficient to provide a meaningful distinction from the previous category (no performance).\n\nFull performance – report those exposures on which full payments are being received, but which have been placed on a non-accrual basis for another reason. That is, because some reasonable doubt exists about ultimate collectability of the exposure, a specific provision has been raised, or write down taken or some other reasons has prompted this action.\n\n  \nNon‑accrual items – with and without provisions\n\nADIs should separately report those facilities classified as non‑accrual against which specific provisions have been created and those non‑accrual items against which no specific provision is held. For those ADIs applying the prescribed provisioning methodology described in Guidance Note AGN 220.3 Prescribed Provisioning (AGN 220.3) and reported in terms of ARF 220.3 Prescribed Provisioning, provisions so created are regarded as specific in nature and should be reported as such on ARF 220.0.\n\nRestructured items\n\nA restructured item is defined as one in which the original contractual terms have been modified to provide for concessions of interest or principal for reasons related to the financial difficulties of a customer rendering the facility non-commercial to the ADI. In considering whether a facility is non-commercial, an ADI needs to consider whether it would extend credit on similar terms and conditions to a new borrower exhibiting similar risk characteristics. A formal (written) agreement must exist between the ADI and borrower before a facility can be classified restructured.\n\nIt is APRA’s general expectation that restructured facilities will not represent a substantial part of an ADI’s total assets.\n\nRestructured items – with and without provisions\n\nRestructured items should be split into those against which there are no specific provisions held and those with provisions that have arisen as part of the restructuring arrangement. The value of specific provisions held against the latter should also be reported. Report only those specific provisions raised prior to, or at the time of, the restructuring. If specific provisions are raised subsequent to the restructuring, the facility should be classified as non‑accrual. The category of restructured with specific provision is primarily designed to address those few instances where ADIs, in employing their problem asset management strategies, create a specific provision ahead of virtually certain write‑off. Please refer to AGN 220.1 for more details.\n\nIt is APRA’s general expectation that the extent of facilities reported in this category will be minor and unlikely to continue to be reported in this category for a long period of time.\n\nOther real estate owned (OREO)\n\nOREO is defined as real estate acquired by an ADI in full or partial settlement of a loan or similar facility through enforcement of security arrangements. This category excludes real estate acquired for occupation by ADI staff, and property controlled under “mortgagee in possession” rights. Please refer to AGN 220.1 for more details.\n\nReport holdings of OREO at fair value. The assets should continue to be reported until the ADI has disposed of the holding.\n\n  \nOther assets acquired through security enforcement\n\nThis category covers assets, other than real estate assets, acquired by an ADI in full or partial settlement of a loan or similar facility through enforcement of security arrangements (e.g. debt-for-equity swaps). Report the value of other assets acquired through security enforcement at fair value after taking into account any appropriate discount factor attributable to uncertain market liquidity conditions. This latter point reflects the likely lack of demand for the asset that has resulted in the ADI holding the asset as a consequence of its exposure recovery activity. Continue to report these assets until they have been sold or the entire exposure is written off.\n\nNew impaired facilities\n\nReport the value of exposures newly classified as impaired during the quarter.\n\nSpecific provisions\n\nAs noted above, report the amount of specific provisions held against the relevant categories for non‑accrual items, restructured items, OREO and other assets acquired through security enforcement.\n\nSecurity held against non-accrual items\n\nReport separately the total value of security held against non-accrual items depending upon whether specific provisions are held or not (items R00913 and R00914 respectively). Should any security held exceed the outstanding balance of an individual non-accrual item the excess should be excluded.\n\nSecurity held against restructured items\n\nReport separately the total value of security held against restructured items depending upon whether specific provisions are held or not (items R00915 and R00916 respectively). Should any security held exceed the outstanding balance of an individual restructured item the excess should be excluded.\n\nInterest/income received\n\nADIs are asked to report interest, fees, etc. actually received during the quarter from borrowers/counterparties in relation to those exposures classified as impaired (non‑accrual, restructured and assets acquired through security enforcement).\n\nIn some cases, ADIs may deem to have received income if there has been a debit to some form of working account. However, in order for this income to be recognised for the purposes of this return, the working account must:\n\n-   not be established for the sole purpose of meeting interest obligations;\n-   remain within approved limits; and\n-   exhibit the character of a working account implying that the account balance will fluctuate and not result in interest being continuously capitalised.\n\nADIs should calculate the effective interest rate being earned on restructured items by reference to the principal outstanding following restructuring (i.e. after taking into account write-offs, provisions that arise as part of the restructuring arrangement or repayments in the form of assets or equity). A restructured facility must be earning a rate of interest that is equal to or greater than the ADI’s average cost of funds at the date of the restructuring. If this is not the case, the facility should be classified as non-accrual.\n\nReport the value of income brought to account during the quarter from assets acquired through security enforcement (including other real estate owned). Any income received should be reported net of identifiable expenses (apart from funding costs) incurred in generating such income. Where, in aggregate, expenses exceed income received, report a negative balance.\n\nInterest/income forgone\n\nFor all categories of impaired facilities, report all interest/income foregone during the quarter. Interest/income foregone is defined as the difference between what the ADI would have received had the exposure performed as contracted and that interest/income actually received. ADIs are asked to report the extent of interest/income foregone on non‑accrual and restructured items for the relevant quarter covered by the return.\n\nPart 1B – Impaired facilities\n\nPart 1B classifies the total balance of impaired facilities by sector.\n\nPart 2A – Past due items\n\nAs items that are 90 days past due but well-secured[\\[6\\]](#_ftn6) represent a higher degree of risk than facilities meeting contractual arrangements, APRA requires ADIs to separately report these items. A facility subject to a regular repayment schedule is regarded as “90 days past due” when: (a) at least 90 calendar days have elapsed since the due date of a contractual payment which has not been met in full; and (b) the total amount outside contractual arrangements is equivalent to at least 90 days worth of contractual payments. Such a facility is regarded as well-secured when the ADI judges that the fair value of associated security is sufficient to ensure that the ADI will recover the entire amount owing. By way of example, and assuming monthly repayment instalments, if a contractual payment was made on 30 March, the facility is past due when the payment on 30 April is not made. Assuming no further payments and monthly instalments, the facility should be classified as 90 days past due on 30 July. ADIs will note that this represents 120 days since a payment was made but the equivalent of 90 days worth of contractual payments being past due.\n\nAn item ceases to be classified as past due when arrears have been reduced so that the exposure is no longer 90 days past due.\n\nIn the case of facilities that do not have a preset repayment schedule (e.g. overdrafts and revolving credit facilities), 90 days past due refers to the period where facilities have remained continuously outside approved arrangements but are well-secured.\n\nThe return asks ADIs to separately report those exposures that are individually managed and those that are managed on a portfolio basis.\n\nIndividually managed facilities\n\nThese are troublesome exposures that are managed on a transaction basis and typically subject to individual review. As discussed below, ADIs should separately report those facilities 90 days past due but well-secured in terms of different credit products common in the Australian financial system. That is, separately report these troublesome exposures as revolving credit, credit cards, housing loans, term loans, lease financing or other loans.\n\nPortfolio managed facilities\n\nExposures managed on a portfolio basis are typically homogenous and often approved and managed using statistical management techniques. Portfolio managed exposures are often not subject to formal regular review other than in cases where payments are behind agreed repayment schedules or indebtedness is outside approved limits.\n\nAny past due facilities managed on a portfolio basis can be excluded from the definition of impaired facilities and remain on an accrual basis until the dollar value of contractual payments is up to 180 days past due (i.e. six months worth of repayments). The commencement of the 180 days is to take place from the date on which the contractual payment of principal and/or interest is not met. Once the dollar amount of past due amounts represent 180 days of contractual payments, an ADI should decide whether it is prepared to subject the accounts to individual review or to write them off. If the ADI chooses to conduct individual reviews, then the facilities can remain on an accrual basis if the ADI is satisfied that the facility is well-secured. Where the facility is not well-secured, the ADI should immediately create an appropriate specific provision and move the facility to a non-accrual basis.\n\nADIs managing facilities on a portfolio basis should report the total value of facilities 90 days past due but less than 180 days past due. As for individually managed facilities, ADIs should separately report in terms of loan type. For all category of loan product sought, distinguish between those exposures that are recorded on Australian or overseas books.\n\nTo provide APRA with a basis upon which to gauge the degree of delinquency in facilities managed on a portfolio basis, ADIs should separately report the total portfolio size in terms of the individual credit product type specified below. APRA also asks those ADIs managing facilities on a portfolio basis to indicate the extent of portfolio-related provisions that have been created with respect to those facilities that are less than 90 days past due.\n\nRevolving credit\n\nA revolving credit is a credit facility that is typically approved for a given period of time but does not have a fixed repayment schedule.\n\nReport the total outstanding balance of loans of a revolving credit nature that fall within the definition of the relevant category of past due reporting. Exclude loans to Australian householders for the purpose of housing (e.g. equity lines of credit secured by residential property). Facilities of this nature should be reported under “Housing loans”.\n\nCredit cards\n\nCredit cards are a common consumer credit arrangement that allows the consumer the option of borrowing against a pre‑approved line of credit. They are typically unsecured.\n\nReport the total outstanding balance of credit card facilities that are outside contractual arrangements for more than 90 consecutive days but are well-secured under the heading “Individually managed facilities”. Any credit card facility that is not well-secured but is outside contractual arrangements for more than 90 consecutive days should be classified as non\\-accrual unless it is managed as part of a portfolio as described in paragraph 4 of AGN 220.1.\n\nReport the total outstanding balance of credit card facilities that are managed on a portfolio basis but are more than 90 days past due and less than 180 days past due.\n\nHousing loans\n\nFor the purpose of this return, housing loans are those facilities, both amortising and line of credit that are primarily secured by a registered mortgage over a residential property. They may be for any purpose including the construction, purchase of dwellings for owner occupation or investment or commercial ventures.\n\nReport the total outstanding balance of housing loans that are past due in accordance with whether facilities are managed on an individual or portfolio basis.\n\nTerm loans\n\nReport the total outstanding balance of loans that have a fixed term and are past due in terms of the above guidance. Exclude loans to householders for the purpose of housing.\n\nLease financing\n\nLeasing finance is a method of financing the acquisition of an asset (e.g. motor vehicle or business equipment) by the user under which the ADI buys the asset from a third party and leases it to the user in return for lease rental payments. A component of the lease rental payment relates to interest and another component to the reduction of principal.\n\nReport the total outstanding balance of lease financing that is outside contractual arrangements in line with the preceding guidance.\n\nOther loans\n\nReport the total outstanding balance of loans that satisfy the preceding criteria with respect to being 90 days past due or more that cannot be readily classified in the other credit product types.\n\nFacilities for which a prescribed provision is raised\n\nAll facilities against which an ADI is required to raise a prescribed provision in terms of AGN 220.3 will need to be recognised as a non‑accrual item for the purposes of this return and in its financial accounts. ADIs applying the prescribed provisioning methodology should be particularly alert to those Category Four Facilities that are irregular for more than 14 days. Facilities in this category must be reported as non‑accrual from the date that the prescribed provision is struck (i.e. once the facility is irregular for more than 14 days).\n\nPart 2B – Past due items\n\nPart 2B classifies the total amount of past due items by sector.","sortOrder":44}],"analysis":{"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The standard continues to apply to all ADIs and to require reporting of impaired facilities on licensed and consolidated bases (para 2; paras 3–4). It replaces an earlier reporting standard but preserves transitional arrangements that require use of the old standard for certain reporting periods (para 15), rather than indicating an explicit broadening or narrowing of the population required to report."},"complexity_factors":["Multiple reporting categories and detailed classification rules for impaired facilities, past‑due items and sectoral breakdowns (Instruction Guide: Parts 1A/1B, 2A/2B; 'Specific instructions')","Different reporting bases (licensed ADI vs consolidated group) and securitisation de‑consolidation adjustments (Securitisation deconsolidation principle)","Staggered, class‑based submission deadlines and possible bespoke frequency changes by APRA (paras 6–9 and 7)","Mandatory external auditor review of processes and controls; annual or more frequent testing required (para 10; AGS 1008 reference)","Detailed measurement and translation rules for foreign‑currency items and units of measurement (Instruction Guide; AASB 121 references)","Extensive cross‑references to other prudential and guidance instruments (APS 120, APS 220, AGN 220.1, AGN 220.3, AASB standards) increasing interpretive load","Electronic submission and digital certificate authorisation requirement imposes technical and security implementation obligations (para 5 and 12)","APRA discretion to make minor form variations and to grant extensions introduces administrative uncertainty and potential compliance planning costs (paras 9 and 13–14)"],"plain_english_summary":"This determination requires every authorised deposit‑taking institution (ADI) to submit regular electronic returns on impaired facilities to APRA via the ‘Direct to APRA’ system, with class‑specific due dates, auditor‑reviewed controls and digital authorisation. APRA states the data are collected for prudential supervision and may be shared with the RBA and ABS (para 1). The standard sets consolidation, foreign‑currency and securitisation reporting rules, creates ongoing compliance and audit burdens for ADI boards and gives APRA discretion to change frequency or make minor form variations."},"kimi_summary":{"_metrics":{"model":"kimi-k2.5","source":"moonshot-realtime","completionTokens":2474},"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The standard appears to maintain its original intended scope of collecting impaired facilities data from ADIs for prudential supervision. While it includes transitional provisions indicating it replaced a previous standard, the substantive content covers the expected range of problem credit exposures, past due items, and associated reporting mechanics without evidence of scope creep beyond the original determination."},"complexity_factors":["16 defined terms in the interpretation section including complex nested definitions like 'highest parent entity' and 'stake'","Extensive cross-referencing to other prudential standards (APS 110, APS 112, APS 113, APS 120, APS 220) and accounting standards (AASB 121, AASB 127, AASB 139)","Dual reporting framework requiring separate submissions for 'Licensed ADI' (stand-alone) and 'Consolidated ADI group' where applicable","Granular sector classification scheme with detailed inclusions/exclusions across 5 major sectors (Households, CSOs, Non-financial corporations, Financial corporations, Other)","Differentiated treatment of securitisation arrangements based on whether they meet operational requirements for regulatory capital relief","Conditional reporting timelines based on 7 different classes of ADI (banks vs building societies vs credit unions etc.)","Complex measurement rules for foreign currency translation with different methods for monetary vs non-monetary items and fair value hedges","Distinction between 'audited' basis (Parts 1A and 2A) and 'best endeavours' basis (Parts 1B and 2B) for different sections of the form","Detailed calculation methodology for determining 90 days past due status for different product types (revolving credit vs term loans)"],"plain_english_summary":"This rule requires all ADIs (banks, foreign branches, building societies, credit unions) and their parent banking groups to report detailed quarterly data on impaired facilities — including non‑accrual, restructured loans, seized collateral and 90+‑day past‑due amounts — to APRA, broken down by borrower sector. Reports must be submitted electronically via APRA’s D2A system, meet tight post‑quarter deadlines, be overseen by boards/senior management, and have annual external audit review of data processes."}},"importantCases":[],"_links":{"self":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-19-of-2008-ars-220-0-impaire","history":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-19-of-2008-ars-220-0-impaire/history","analysis":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-19-of-2008-ars-220-0-impaire/analysis","conflicts":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-19-of-2008-ars-220-0-impaire/conflicts","importantCases":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-19-of-2008-ars-220-0-impaire/important-cases","documents":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-19-of-2008-ars-220-0-impaire/documents"}}