NettingNetting

Netting

Unless otherwise specifically stated, institutions are allowed to take advantage of netting agreements in relation to disclosure of data items in this form. Institutions are to comply with the prerequisite for netting outlined in Australian accounting standards notably AASB 1014 ‘Set-off and Extinguishment of Debt’.

Related party disclosure

Amounts due from, loans to, debentures of, shares in, or units in a trust or body corporate that is related to the insurer are to be disclosed for items of assets and liabilities where indicated in the form. For the purposes of this form, related bodies corporate are to be interpreted consistently with the meaning as in AASB 1017. AASB 1017 provides that related party means, in relation to a reporting entity any:

(a) other entity that at any time during the financial year, has control or significant influence over the reporting entity; or

(b) other entity that at any time during the financial year, is subject to control or significant influence by the reporting entity; or

(c) other entity that, at any time during the financial year, is controlled by the same entity that controls the reporting entity. Referred to as a situation in which entities are subject to common control; or

(d) other entity that, at any time during the financial year, is controlled by the same entity that significantly influences the reporting entity; or

(e) other entity that, at any time during the financial year, is significantly influenced by the same entity that controls the reporting entity; or

(f) director of the reporting entity or any of their director-related entities; or

(g) director of any other entity identified as a related party under any of paragraphs (a) to (e), or any of their director-related entities;

but excludes any other entity (except those identified as a related party under paragraph (f)) where the related party relationship results solely from normal dealings of:

(h) financial institutions; or

(i) authorised trustee corporations; or

(j) fund managers; or

(k) trade unions; or

(l) statutory authorities; or

(m) government departments; or

(n) local governments.[1]

AASB 1017 defines director-related entities as meaning “the spouses of such directors, relatives of such directors or spouses and any other entity under the joint or several control or significant influence of such directors, spouses or relatives”.

Relative in relation to a person is defined in the Corporations Law to mean the spouse, partner, son, daughter, or brother or sister of the person.