Unit of measurementUnit of measurement

Unit of measurement

Banks, Credit Unions, Cairns Penny Savings & Loans Limited and Building Societies are asked to complete the form in thousands of Australian dollars with no decimal place.

Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 1012 ‘Foreign Currency Translation’.

The general requirements of AASB 1012 for translation are:

1. Foreign currency monetary items outstanding at the reporting date must be translated at the spot rate at the reporting date.
2. Other items outstanding at the reporting date must not be retranslated subsequent to initial recognition of the transaction.

Monetary items are defined to mean money held and assets and liabilities that are to be received or paid in fixed or determinable amounts of money.

Monetary items arising under foreign currency derivative contracts at the reporting date must be translated as follows:

• Where the exchange rate is fixed in the contract, at that fixed exchange rate; and
• Where the exchange rate varies, at the spot rate at the reporting date.

Basis of preparation

Unless otherwise specifically stated, information reported on this form should comply with Australian accounting standards.

Definitions

A separate form for lease finance in all eight states should be completed. Where the entity has no activity in any state, check the “nil form” box. The form requests details of new commitments to provide lease finance to private and public enterprises. Only the Australian activities of the business should be included on the form. If exact figures are not available please provide careful estimates. Please note that the items listed under Including and Excluding are examples and should not be taken as a complete list of items to be included or excluded.

What is a “commitment”?

A commitment is a firm offer to provide finance which has been accepted by the client. A commitment generally exists once the loan application has been approved, and a loan contract or letter of offer has been issued to the borrower.

Including:

• commitments to related corporations except to those related corporations within the same Financial Sector (Collection of Data) Act 2001 category or Australian and New Zealand Standard Industrial Classification (ANZSIC) class; and
• new commitments which have also been cancelled during the month.

Excluding:

• commitments to non-residents;
• commitments for commercial hire purchase agreements (these should be reported on ARF 391.0 Commercial Finance);