Section The quoted market price in an active a - Financial Sector (Collection of Data) determination No. 28 of 2005 - The quoted market price in an active and liquid market (i.e. market value); or | Zoe
This form captures information on the reporting an insurer’s interest in controlled entities and joint venture entities and joint venture operations.
Audit requirements
The information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.
Reporting entities
Forms are to be completed for the following reporting entities where appropriate:
Authorised insurance entities (including mutuals); and
Authorised reinsurance entities.
Unit of measurement
This form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place. As a general rule, amounts denominated in foreign currency are to be converted to AUD in accordance with the requirements of the Australian accounting standards, notably AASB 1012 ‘Foreign Currency Translation’.
Basis of preparation
Insurers are requested to follow the recognition and measurement basis required by the APRA forms for the purposes of completing this form.
Reporting period
Insurers are required to report the information in the reporting form on an annual basis.
The annual information is to be completed in respect of the financial year of the insurer.
The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer. See the Reporting Requirements table for details.
Reporting lag
This form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in the Reporting Requirements table.
Specific instructions
This form is separated into the following parts:
Part A: Interest in Controlled entities
Part B: Interest in Joint Venture Operations/entities
The requirements for each of these are detailed below:
Part A: Interest in Controlled Entities
For the purposes of this form, “Entity" means any legal, administrative, or fiduciary arrangement, organisational structure or other party (including a person) having the capacity to deploy scarce resources in order to achieve objectives.
For the purposes of this form, “controlled entities” is to be interpreted as defined in AASB 1024 Consolidated Accounts. AASB 1024 defines a controlled entity/“subsidiary" as meaning an entity which is controlled by a parent entity. A parent entity is defined as an entity which controls another entity.
(1) Name of Entity
Report the full name of the controlled entity.
(2) Description/Nature of Main Business
In the space provided, detail a brief description of the main business conducted by the entity.
(3) APRA Regulated General Insurer Yes/No
If the controlled entity is an APRA regulated general insurance entity input ‘yes’.
If the controlled entity is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions does not need to be completed.
(4) Country of Incorporation
This is the country in which the entity is incorporated.
(5) Ownership Percentage %
Disclose the percentage of the reporting insurer ownership of shares or units of the controlled entity.
(6) Market Value of Investment in Controlled Entity $'000
Disclose the market value of the investment of the reporting insurer in the controlled entity. Market value is to be interpreted as defined in accordance with the Australian accounting pronouncements.
“Market value means the amount which could be expected to be received from the disposal of an asset in an orderly market”.[1]
Market value or fair value has the same meaning as defined in the Australian Accounting standards. Market value is defined for accounting purposes as a subset of fair value, where fair value means the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's-length transaction, and is determined as follows:
The quoted market price in an active and liquid market (i.e. market value); or
When there is infrequent activity in a market, the market is not well established, small volumes are traded relative to the asset or liability to be valued, or a quoted market price is not available – an estimate of a price for the asset or liability in an active and liquid market.
(7) Goodwill or Intangible Component of Investment $'000
Disclose that component value of the reporting insurer’s investment in the controlled entity, that comprises goodwill and other forms of intangible assets.
(8) Market Value of Controlled Entity
Disclose the total market value of the controlled entity. Market value is to be interpreted as defined in accordance with the Australian accounting pronouncements.
“Market value means the amount which could be expected to be received from the disposal of an asset in an orderly market”.
Market value or fair value has the same meaning as defined in the Australian Accounting standards. Market value is defined for accounting purposes as a subset of fair value, where fair value means the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's-length transaction, and is determined as follows:
The quoted market price in an active and liquid market (i.e. market value); or
When there is infrequent activity in a market, the market is not well established, small volumes are traded relative to the asset or liability to be valued, or a quoted market price is not available – an estimate of a price for the asset or liability in an active and liquid market.
Disclosure of Gross Assets and Gross Liabilities
Disclosure of ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to based on where the items of assets are invested and liabilities incurred. Enter the relevant details for each country/region as appropriate.
Do not disclose this information if the controlled entity is an APRA regulated general insurer. This type of information is reported in GRF 400.0 Statement of Risk by Country.
The countries/regions listed on the form are:
Australia;
New Zealand;
USA;
UK;
Asia;
Continental Europe; and
Other.
Part B: Interest in Joint Venture Operations/entities
For the purposes of this form, the reference to joint venture includes a joint venture entity and a joint venture operation. Joint venture entity and joint venture operation is to be interpreted as defined in AASB 1006 ‘Accounting For Interests in Joint Ventures’. An extract of the definition in AASB 1006 is provided below:
Joint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.
Joint venture entity means a joint venture that is in the form of an entity and does not include:
(a) an entity that is acquired and held exclusively with a view to its disposal in the near future
(b) an entity that operates under severe long-term restrictions which impair significantly its ability to make distributions to the venturer.
Joint venture operation means a joint venture that is not a joint venture entity and does not include an entity that:
(a) is acquired and held exclusively with a view to its disposal in the near future
(b) operates under severe long-term restrictions that impair significantly its ability to make distributions to the venturer.[2]
(1) Name of Joint Venture
Report the full name of the Joint Venture.
(2) Description/Nature of Main Business
In the space provided, detail a brief description of the main business conducted by joint venture.
(3) APRA Regulated General Insurer Yes/No
If the joint venture is an APRA regulated general insurance entity input ‘yes’.
If the joint venture is an APRA regulated general insurance entity, then details on exposure of gross assets and gross liabilities in the various countries/geographical regions as required by the form does not need to be completed.
(4) Country of Incorporation
This is the country in which the joint venture is incorporated (where applicable).
(5) Ownership Percentage or Interest in Joint Venture
Disclose the percentage of the reporting insurer ownership or interest in the joint venture.
(6) Market Value of Investment/Interest in Joint Venture $'000
Disclose the market value of the investment/interest of the reporting insurer in the Joint Venture. Market value is to be interpreted as defined in accordance with the Australian accounting pronouncements.
“Market value means the amount which could be expected to be received from the disposal of an asset in an orderly market”.[3]
Market value or fair value has the same meaning as defined in the Australian Accounting standards. Market value is defined for accounting purposes as a subset of fair value, where fair value means the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's-length transaction, and is determined as follows:
The quoted market price in an active and liquid market (i.e. market value); or
When there is infrequent activity in a market, the market is not well established, small volumes are traded relative to the asset or liability to be valued, or a quoted market price is not available – an estimate of a price for the asset or liability in an active and liquid market.
(7) Goodwill or Intangible Component of Investment $'000
Disclose that component value of the reporting insurer’s investment/interest in the Joint Venture, that comprises goodwill and other forms of intangible assets.
(8) Market Value of Joint Venture
Disclose the total market value of the joint venture. Market value is to be interpreted as defined in accordance with the Australian accounting pronouncements.
“Market value means the amount which could be expected to be received from the disposal of an asset in an orderly market”[4]
Market value or fair value has the same meaning as defined in the Australian Accounting standards. Market value is defined for accounting purposes as a subset of fair value, where fair value means the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's-length transaction, and is determined as follows:
The quoted market price in an active and liquid market (i.e. market value); or
When there is infrequent activity in a market, the market is not well established, small volumes are traded relative to the asset or liability to be valued, or a quoted market price is not available – an estimate of a price for the asset or liability in an active and liquid market.
Disclosure of Gross Assets and Gross Liabilities
Disclosure of ‘Gross Assets’ and ‘Gross Liabilities’ reported by country or geographic region specified on the form. This is to be based on where the items of assets are invested and liabilities incurred. Enter the relevant details for each country/region as appropriate.
Do not disclose this information if the joint venture is an APRA regulated general insurer.