Reporting Standard SRS 100.0 (2005)

Statement of Financial Performance

Objective of this reporting standard

This reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001. It applies when a superannuation entity had total assets of $50 million or more at the end of the most recent year of income for the entity at the time for reporting.[1] The trustee of such an entity must give APRA, on a quarterly basis, a statement of the entity’s financial performance.

This reporting standard outlines the overall requirements for the provision of the required information to APRA. It should be read in conjunction with:

• Form SRF 100.0 Statement of Financial Performance (Form SRF 100.0) and the instructions to that form; and
• the Quarterly Reporting Requirements and General Instructions Guide

which are attached and form part of this reporting standard.

Purpose

1. Data collected in Form SRF 100.0 is used by APRA for the purpose of prudential supervision and by the Australian Bureau of Statistics for statistical purposes, including the compilation of the Australian Financial Accounts.

Application and commencement

2. This reporting standard will apply, from the date of registration of the reporting standard on the Federal Register of Legislative Instruments, to each trustee of a relevant registered superannuation entity, as defined by paragraph 3.

3. A superannuation entity is a relevant registered superannuation entity if:

(a) at the end of the most recent year of income (within the meaning of section subsection 10(1) of the SIS Act) of the superannuation entity at the time for reporting, it had total assets of at least $50 million; and

(b) at the end of the most recent reporting period for the entity, it was not:

(i) a small APRA fund;

(ii) a self managed superannuation fund; or

(iii) a single member approved deposit fund.

Note: For example, if a superannuation entity (other than one excluded by paragraph (b)) satisfied paragraph (a) at the end of its most recent year of income, but during the most recent quarterly reporting period its assets fell below $50 million, the trustee of that entity will still have to report under this reporting standard in respect of that reporting period.

Note: Part 2B of the SIS Act makes provision for the registration of superannuation entities. However, although it is expected that most superannuation entities covered by this reporting standard will become registered under Part 2B, either during or after the licensing transition period referred to in the SIS Act, it is not a requirement of the definition of ‘relevant registered superannuation entity’ that a superannuation entity actually be registered under Part 2B. A superannuation entity will be a ‘relevant registered superannuation entity’ if it meets the definition in paragraph 3 of this reporting standard, even if it has not been registered under Part 2B. This note is inserted for the avoidance of doubt.

Information required

4. The trustee of a relevant registered superannuation entity must provide APRA with the information required by Form SRF 100.0, in respect of the entity, for each reporting period, by no later than the due date for information in respect of the reporting period.

5. For the avoidance of doubt, if the trustee is trustee of more than one relevant registered superannuation entity, the trustee must separately provide the information required by the form for each of those relevant registered superannuation entities.

Forms and method of submission

6. The information required by this reporting standard must be given to APRA by the trustee of a relevant registered superannuation entity either:

(a) where subparagraph (b) does not apply:

(i) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or

(ii) by manually completing Form SRF 100.0 on paper and mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales; or

(b) by means of an agent to whom the trustee has outsourced the function of providing the information on the trustee’s behalf, in which case the agent must provide the information:

(i) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application: or

(ii) if the agent has contacted APRA and advised that the agent cannot submit the information in electronic form under sub-subparagraph (i), by manually completing Form SRF 100.0 on paper and mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales.

Note: The ‘Direct to APRA’ software and relevant forms may be obtained from APRA.

Reporting periods and due dates

7. Subject to paragraph 8, the trustee of a relevant registered superannuation entity must provide the information required by this reporting standard in respect of each quarter based on the year of income (within the meaning of subsection 10(1) of the SIS Act) of the entity.

8. APRA may, by notice in writing change the reporting periods, or specified reporting periods, for a particular relevant registered superannuation entity to require the trustee to provide the information required by this reporting standard in respect of the entity:

(a) more frequently (if, having regard to the particular circumstances of the entity, APRA considers it necessary or desirable to obtain information more frequently for the purposes of the prudential supervision of the entity); or

(b) less frequently (if, having regard to the particular circumstances of the entity and the extent to which it requires prudential supervision, APRA considers it unnecessary to require it to provide the information on a quarterly basis).

9. The information required by this reporting standard must be provided to APRA within 25 business days after the end of the reporting period to which it relates.

10. APRA may grant a trustee 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.

Quality control

11. Information required under this reporting standard is not required to be audited or tested by the auditor of the superannuation entity.

12. The information provided by a trustee under this reporting standard must be the product of processes and controls developed by the trustee for the internal review and authorisation of that information. It is the responsibility of the trustee to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.

Note: The trustee of a superannuation entity is not required: (a) to digitally sign or authorise the information required by this reporting standard when provided electronically; or (b) to sign the form when submitting the information on paper.

Minor alterations to form and instructions

13. APRA may make minor variations to:

(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

(b) the instructions to a form, to clarify their application to the form

without changing any substantive requirement in the form or instructions.

14. If APRA makes such a variation it must notify trustees of relevant registered superannuation entities in writing.

Transitional

15. If the due date for providing information in respect of a reporting period of a relevant registered superannuation entity is a day after the date of registration of this reporting standard on the Federal Register of Legislative Instruments, the trustee of that entity must provide the information required by this reporting standard in respect of that reporting period (even if the reporting period itself ended before the date of registration of this reporting standard).

Interpretation

16. In this reporting standard:

APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998;

business day means an ordinary business day, exclusive of Saturdays, Sundays and public holidays;

due date means the relevant due date under paragraph 9 or, if applicable, paragraph 10;

officer in relation to a trustee of a relevant registered superannuation entity means:

(a) if the trustee is a corporation – a director or officer of that corporation;

(b) if the trustee is a natural person – that person; or

(c) if two or more natural persons are trustees of the entity – one of those persons;

regulated superannuation fund has the meaning given by section 19 of the SIS Act;

relevant registered superannuation entity has the meaning given by paragraph 3 of this reporting standard;

reporting period means a period mentioned in paragraph 7 or, if applicable, paragraph 8;

self managed superannuation fund has the meaning given by section 17A of the SIS Act;

single-member approved deposit fund means an approved deposit fund (within the meaning of subsection 10(1) of the SIS Act) that has only one member;

SIS Act means the Superannuation Industry (Supervision) Act 1993;

small APRA fund means a regulated superannuation fund that has fewer than 5 members and is regulated by APRA under the SIS Act;

superannuation entity has the meaning given by subsection 10(1) of the SIS Act.

Note: Subsection 10(1) of the SIS Act provides that superannuation entity means a regulated superannuation fund, or an approved deposit fund, or a pooled superannuation trust (as defined in the SIS Act).

Objective of this reporting standard

This reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001. It applies when a superannuation entity had total assets of $50 million or more at the end of the most recent year of income for the entity at the time for reporting.[1] The trustee of such an entity must give APRA, on a quarterly basis, a statement of the entity’s financial performance.

This reporting standard outlines the overall requirements for the provision of the required information to APRA. It should be read in conjunction with:

• Form SRF 100.0 Statement of Financial Performance (Form SRF 100.0) and the instructions to that form; and
• the Quarterly Reporting Requirements and General Instructions Guide

which are attached and form part of this reporting standard.

Purpose

1. Data collected in Form SRF 100.0 is used by APRA for the purpose of prudential supervision and by the Australian Bureau of Statistics for statistical purposes, including the compilation of the Australian Financial Accounts.

Application and commencement

2. This reporting standard will apply, from the date of registration of the reporting standard on the Federal Register of Legislative Instruments, to each trustee of a relevant registered superannuation entity, as defined by paragraph 3.

3. A superannuation entity is a relevant registered superannuation entity if:

(a) at the end of the most recent year of income (within the meaning of section subsection 10(1) of the SIS Act) of the superannuation entity at the time for reporting, it had total assets of at least $50 million; and

(b) at the end of the most recent reporting period for the entity, it was not:

(i) a small APRA fund;

(ii) a self managed superannuation fund; or

(iii) a single member approved deposit fund.

Note: For example, if a superannuation entity (other than one excluded by paragraph (b)) satisfied paragraph (a) at the end of its most recent year of income, but during the most recent quarterly reporting period its assets fell below $50 million, the trustee of that entity will still have to report under this reporting standard in respect of that reporting period.

Note: Part 2B of the SIS Act makes provision for the registration of superannuation entities. However, although it is expected that most superannuation entities covered by this reporting standard will become registered under Part 2B, either during or after the licensing transition period referred to in the SIS Act, it is not a requirement of the definition of ‘relevant registered superannuation entity’ that a superannuation entity actually be registered under Part 2B. A superannuation entity will be a ‘relevant registered superannuation entity’ if it meets the definition in paragraph 3 of this reporting standard, even if it has not been registered under Part 2B. This note is inserted for the avoidance of doubt.

Information required

4. The trustee of a relevant registered superannuation entity must provide APRA with the information required by Form SRF 100.0, in respect of the entity, for each reporting period, by no later than the due date for information in respect of the reporting period.

5. For the avoidance of doubt, if the trustee is trustee of more than one relevant registered superannuation entity, the trustee must separately provide the information required by the form for each of those relevant registered superannuation entities.

Forms and method of submission

6. The information required by this reporting standard must be given to APRA by the trustee of a relevant registered superannuation entity either:

(a) where subparagraph (b) does not apply:

(i) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or

(ii) by manually completing Form SRF 100.0 on paper and mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales; or

(b) by means of an agent to whom the trustee has outsourced the function of providing the information on the trustee’s behalf, in which case the agent must provide the information:

(i) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application: or

(ii) if the agent has contacted APRA and advised that the agent cannot submit the information in electronic form under sub-subparagraph (i), by manually completing Form SRF 100.0 on paper and mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales.

Note: The ‘Direct to APRA’ software and relevant forms may be obtained from APRA.

Reporting periods and due dates

7. Subject to paragraph 8, the trustee of a relevant registered superannuation entity must provide the information required by this reporting standard in respect of each quarter based on the year of income (within the meaning of subsection 10(1) of the SIS Act) of the entity.

8. APRA may, by notice in writing change the reporting periods, or specified reporting periods, for a particular relevant registered superannuation entity to require the trustee to provide the information required by this reporting standard in respect of the entity:

(a) more frequently (if, having regard to the particular circumstances of the entity, APRA considers it necessary or desirable to obtain information more frequently for the purposes of the prudential supervision of the entity); or

(b) less frequently (if, having regard to the particular circumstances of the entity and the extent to which it requires prudential supervision, APRA considers it unnecessary to require it to provide the information on a quarterly basis).

9. The information required by this reporting standard must be provided to APRA within 25 business days after the end of the reporting period to which it relates.

10. APRA may grant a trustee 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.

Quality control

11. Information required under this reporting standard is not required to be audited or tested by the auditor of the superannuation entity.

12. The information provided by a trustee under this reporting standard must be the product of processes and controls developed by the trustee for the internal review and authorisation of that information. It is the responsibility of the trustee to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.

Note: The trustee of a superannuation entity is not required: (a) to digitally sign or authorise the information required by this reporting standard when provided electronically; or (b) to sign the form when submitting the information on paper.

Minor alterations to form and instructions

13. APRA may make minor variations to:

(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

(b) the instructions to a form, to clarify their application to the form

without changing any substantive requirement in the form or instructions.

14. If APRA makes such a variation it must notify trustees of relevant registered superannuation entities in writing.

Transitional

15. If the due date for providing information in respect of a reporting period of a relevant registered superannuation entity is a day after the date of registration of this reporting standard on the Federal Register of Legislative Instruments, the trustee of that entity must provide the information required by this reporting standard in respect of that reporting period (even if the reporting period itself ended before the date of registration of this reporting standard).

Interpretation

16. In this reporting standard:

APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998;

business day means an ordinary business day, exclusive of Saturdays, Sundays and public holidays;

due date means the relevant due date under paragraph 9 or, if applicable, paragraph 10;

officer in relation to a trustee of a relevant registered superannuation entity means:

(a) if the trustee is a corporation – a director or officer of that corporation;

(b) if the trustee is a natural person – that person; or

(c) if two or more natural persons are trustees of the entity – one of those persons;

regulated superannuation fund has the meaning given by section 19 of the SIS Act;

relevant registered superannuation entity has the meaning given by paragraph 3 of this reporting standard;

reporting period means a period mentioned in paragraph 7 or, if applicable, paragraph 8;

self managed superannuation fund has the meaning given by section 17A of the SIS Act;

single-member approved deposit fund means an approved deposit fund (within the meaning of subsection 10(1) of the SIS Act) that has only one member;

SIS Act means the Superannuation Industry (Supervision) Act 1993;

small APRA fund means a regulated superannuation fund that has fewer than 5 members and is regulated by APRA under the SIS Act;

superannuation entity has the meaning given by subsection 10(1) of the SIS Act.

Note: Subsection 10(1) of the SIS Act provides that superannuation entity means a regulated superannuation fund, or an approved deposit fund, or a pooled superannuation trust (as defined in the SIS Act).

Instruction Guide

Completion of SRF 100.0 Statement of Financial Performance

This form must be completed on a quarterly basis by all trustees of APRA-regulated superannuation entities, excluding Small APRA Funds (SAFs) and Single Member Approved Deposit Funds (SMADFs), with total assets of at least $50m at the end of their most recent year of income.

If a superannuation entity has no items to disclose, the form can be left blank as D2A recognises blanks as zeros; however it is still required to be submitted as part of the quarterly return.

Note: All forms included in the SRF 100 series should be submitted together as a quarterly return, not individually as separate forms.

Purpose

This form collects specific financial information resulting from the operations of the superannuation entity, specifically the investment operations and membership activity in terms of contributions, rollovers, investments, expenses and benefit payments. Information requested in this form will form part of APRA’s monitoring and analysis framework for superannuation entities and the industry. In addition, the Australian Bureau of Statistics will use specific information in this form for statistical purposes.

This Guide has been prepared to assist in the completion and lodgement of the SRF 100.0 Statement of Financial Position. For ease of use, the Guide has been split into three main sections as follows:

• Lodgement and validation of SRF 100.0 Statement of Financial Performance;
• General guidance – this guidance provides principles that should be applied to all items throughout SRF 100.0 Statement of Financial Performance; and
• Instruction guide for specific items – this guidance should be applied to the specific items which relate to each superannuation entity.

Lodgement and validation of SRF 100.0 Statement of Financial Performance

Lodgement and authentication codes

This form must be completed and lodged to APRA by a corporate or natural ‘person’ (trustee director or administrator), and not by the superannuation entity as the entity is not a ‘person’.

Once SRF 100.0 Statement of Financial Performance has been completed and submitted to APRA, an authentication code is generated in D2A from information entered into the form. The authentication code and date submitted appear in the footer of each page of the form. Any change of information entered or resubmission of the form will result in a change to the authentication code.

A receipt indicating successful lodgement of the form will be provided via email. There may be a slight delay in a receipt being provided if the submission is made in the last week of October. Do not resubmit your form however, as the receipt will be generated.

Validation and calculation of totals

When data is entered into the form, the total balances (in the greyed out cells) will not be calculated automatically. The total items will only calculate when the form is validated. Clicking on the word 'validate' in the top left hand corner of the screen and selecting ‘OK’ will result in the total items being calculated and the validation rules appearing for review.

There are three types of validation rules as follows:

1. Warnings: Confirmation rules – this rule requires the user to provide confirmation that the data entered into an item is correct, for example that a negative number is correct and should not be positive. To provide confirmation the user should click the confirm box and provide a brief description in support of the item.

Note: Descriptions entered for warnings may not always appear if the return is validated more than once. There is no need to re-enter the description as D2A has saved this description and the comments will be lodged with the return.

2. Error: Mandatory rules – this indicates an error in an item, for example a description and a value must be included in a table. These errors must be corrected before the return can be lodged.

3. Cross form validations – this also indicates an error and must be corrected before the return can be lodged, for example Totals disclosed in SRF 110.0 Statement of Financial Position item 12 ‘Net assets available to pay benefits’ must agree with the net assets reported in item 23 ‘Net assets available to pay benefits at the end of the reporting period disclosed on SRF 100.0 Statement of Financial Performance for each quarter.

General guidance for completion of SRF 100.0 Statement of Financial Performance

Please read document “Reporting Requirements and General Instruction Guide” before completing this form.

Important!

Once selected, the basis of accounting used must be consistent for all 4 quarterly returns and the corresponding annual return.

Important!

The financial information requested in these quarterly forms is to be reported as at the last day of the reporting period on a financial year to date basis of the superannuation entity, rather than for the individual quarter alone.

Important!

Unless otherwise indicated, report all items on the form as positive numbers. SRF 100.0 Statement of Financial Performance must not be considered in terms of the double entry accounting method. Positive numbers are required throughout the form, even in relation to a credit entry, to enable the validation calculations to be generated accurately. Revenue balances should only be reported as a negative number if a loss has occurred. All negative numbers will have to be confirmed by the user and a description provided in line with the Warnings validation as described above

Important!

Report all balances in the tables as positive numbers.

Important!

Report all disclosures rounded to the nearest thousand dollars. Do not use decimal numbers i.e. when dividing the value to obtain a rounded balance to the nearest thousand dollars, ensure that the figure is whole.

Important!

There is no materiality limit applied to the disclosure of amounts within SRF 100.0 Statement of Financial Performance. All balances must be recorded. ‘Other’ items cannot be omitted based on materiality levels, but must disclose amounts that cannot be shown in the standard classifications. Each superannuation entity should use its own judgement in grouping items into meaningful categories.

Important!

Zeros are not required where there is no dollar value for an item. If there is no balance for an item, leave it blank, as D2A recognises blanks as zeros.

Basis of accounting (cash vs. accruals)

Items on this form should be reported on a basis consistent with the accounting treatment (cash or accruals basis) adopted by the superannuation entity. APRA would ordinarily expect that regulated superannuation entities are ‘reporting entities’, and will therefore apply an accruals basis, in accordance with the requirements of current Australian Accounting Standards and the guidance in APRA Superannuation Circular No. V.A.2.

For example, where a receivable or payable is recognised at period end under the entity’s accounting policy, the cash amount received or paid during the period should be adjusted by adding the receivable/payable amount at the end of the current period and subtracting the receivable/payable amount at the end of the previous year.

Netting off of amounts

Unless otherwise specifically stated, data in this form should be reported on a gross basis, with no netting, even where the institutions comply with the prerequisites for netting outlined in current Australian Accounting Standards. For example, contributions should be reported before deducting contributions tax, and investment expenses should be disclosed before deducting separately identifiable direct investment expenses.

Direct vs. indirect investments

Certain items on this form distinguish between ‘directly held’ investments and those which are not directly held.

• Directly held investments are those made by the superannuation entity in its own name, as part of the internal investment management function. This includes investments held by a custodian where these are held in Trust for the entity and the superannuation entity retains the decision-making function regarding the making and redeeming of particular investments within the portfolio.

• Investments that are not directly held include underlying investments that are held with external investment managers (such as investments in PSTs or unit trusts), and investments held via individually managed mandates/portfolios where the decision-making function regarding the making and redeeming of particular investments within the portfolio may rest with the investment manager.

For quarterly reporting purposes, disclosures regarding investments that are not directly held are not required to be made on a look-through basis.

Important!

The annual reporting requirement to disclose investments and income from individually managed mandates/portfolios on a look-through basis is different to the quarterly reporting requirements (where applicable), which do not require a look-through basis for these investments.

Instruction guide for specific items

1. Contribution revenue

Report all contributions income received and receivable for the period, to the extent known by the superannuation entity. Do not include ‘rollovers received’ in items 1.1 to 1.5 - show these at item 2 ‘Rollovers’ instead. Show contributions gross of contributions tax (which is reported separately at item 20) and do not deduct entry fees, deferred entry fees, commissions, management fees or any other ongoing fees or charges deducted from the contributions received (where applicable to the superannuation entity).

Important!

• Where fees (as detailed above) are deducted from the contributions or members’ accounts by the superannuation entity and paid out to a third party (for example a financial advisor or trustee entity) they should be disclosed under item 18 ‘Operating Expenses’.

Important!

For items 1.1 and 1.2 (below), disclose contributions income received as a positive number. Contribution revenue should only be recorded as a negative number when losses have occurred

1.1. Employer

Contributions income received and receivable from the employer(s) for the year to date. Includes (but is not limited to):

• all mandated employer contributions (SG, SG voucher, award/productivity, and contributions by the employer under enterprise bargaining agreements or under the superannuation entity’s governing rules);
• salary sacrifice contributions;
• ETP or ‘golden handshake’ amounts from the employer where they represent pre-tax contributions;
• voluntary employer contributions; and
• contributions by an employer sponsor to reduce the deficit in a defined benefit superannuation entity.

Do not include amounts rolled into Approved Deposit Funds (ADF) - these are included at item 2. Superannuation entities that are Pooled Superannuation Trusts (PSTs) please do not fill out this item – fill out item 1.3 instead.

1.2. Personal member (do not include rollovers)

Contributions income received and receivable from members for the year to date. Includes (but is not limited to):

• member post-tax contributions;
• contributions from self-employed members;
• member contributions required under an industrial agreement or the entity’s governing rules; and
• Capital gains tax (CGT) exempt contributions.

Do not include salary sacrifice contributions – these are included at item 1.1 above. Do not include spouse, child or Federal government co-contributions – these are included at item 1.4 below. Superannuation entities that are PSTs please do not fill out this item – fill out item 1.3 instead.

1.3. Units issued (PSTs only)

This item is to be completed only by superannuation entities that are PSTs. (Other entities please complete items 1.1 and 1.2 instead.) Record the dollar value of contributions income received and receivable from PST members for the year to date, including contributions from self-employed members.

Important!

If the superannuation entity classifies itself as a PST under SRF 250.0 Superannuation Entity Profile item 6.1, then units issued should be disclosed under SRF 200.0 Statement of Financial Performance item 1.3.

1.4. Other (provide details in Table 1 below)

Record all other contributions income that is not appropriately recorded in items 1.1 to 1.3. Provide details in Table 1 giving a description and amount for each type of ‘other’ contribution. Includes (but is not limited to):

• compensation-based contributions;

• spouse contributions i.e. contributions made by the member’s spouse on behalf of the member;

• child contributions; and

• Federal government co-contributions.

1.5. Total contributions

The sum of the Contribution Revenue items 1.1 to 1.4.

2. Rollovers

2.1. Members’ benefits received

Record the gross value of members’ benefits that have been rolled over/transferred in to the reporting superannuation entity from another superannuation entity. Include amounts received on behalf of both new and existing members. Include rollovers/transfers between superannuation entities where a single employer sponsors several superannuation entities, but not between sub-plans of a single master trust.

Do not include amounts that are new to the superannuation system (i.e. do not include amounts that have not been received by a previous superannuation entity) as these are included in item 1 above.

2.2. Members’ benefits paid

Record the total value of member benefit entitlements that have been rolled over/transferred out to another superannuation entity (either directly or via a third party), whether at the request of a member/beneficiary or automatically rolled over. Show the amount before tax, but net of the superannuation entity’s fees and charges (e.g. exit fees).

Includes (but is not limited to):

• monies of lost members and other amounts transferred to an eligible rollover entity;
• rollovers/transfers between superannuation entities where a single employer sponsors several superannuation entities (but not between sub-plans of a single master trust);
• amounts used to purchase a pension or annuity;
• insured amounts paid to members or beneficiaries (the proceeds received from insurance policies should also be separately disclosed in item 6); and
• the rollover portion of a benefit payment which includes non-rollover components (such as a cash payment to a member).

Do not include amounts that are paid to a source other than a superannuation entity. These should be included at item 5 below. Where a benefit includes sub-components (e.g. lump sum cash payment, lump sum rollover, pension payment) each component should be reported separately under the relevant items 5.1 to 5.10 below (for cash payments of lump sums or pensions) or 2.2 above (for rollovers).

2.3. Net rollovers

Represents item 2.1 less item 2.2.

3. Repatriation to employer sponsor

Where the superannuation entity has repatriated funds to an employer sponsor, report the value of the funds repatriated.

Do not include other types of payments to the employer sponsor – these should be included in the relevant section of this form (for example, administration fees paid to the employer sponsor should be included at item 18.3).

4. Contribution tax and surcharge

All tax amounts should be determined in accordance with current Australian Accounting Standards.

For items 4.1 and 4.2, record contribution tax and surcharge as positive numbers.

4.1. Contribution tax

This amount represents the tax expense in relation to taxable contributions made into the superannuation entity during the year, and specified rollover amounts. Contributions tax should be reported if the superannuation entity has employer contributions in SRF 200.0 Statement of Financial Performance item 1.1. Report all contributions tax at this item, not at item 20 ‘Tax expense on net operating performance’.

The contribution tax amount disclosed under item 4.1 is to be deducted from item 20 ‘Tax expense on net operating performance’.

4.2. Contribution surcharge

This amount represents the surcharge expense for the year to date. This is represented by the amount paid by the superannuation entity to the Australian Taxation Office, plus any amount taken up as a liability by the superannuation entity for any unpaid surcharge as at the end of the reporting period, less any liability for unpaid surcharge taken up at the end of the previous reporting year.

4.3. Total contribution tax and surcharge

Represents the sum of items 4.1 and 4.2.

5. Benefit payments (do not include rollovers - these should be included in item 2)

Show the amount of benefits expense gross (i.e. before tax on cash payments is deducted), but net of the superannuation entity’s fees and charges (e.g. exit fees). Include insured amounts paid to members or beneficiaries. (The proceeds received from insurance policies should also be separately disclosed in item 6.)

Items 5.1 to 5.9 refer to benefit payments made direct to members and consequently:

• Member benefits rolled over or transferred to other superannuation entities should be included in item 2.2 and not under item 5.

• The benefits expense value disclosed should be the benefits paid and payable to members exiting during the year to date. It should not be reported as the change in accrued benefit liabilities of all members.

• Where a benefit includes sub-components (e.g. lump sum cash payment, lump sum rollover, pension payment) each component should be reported separately under the relevant items 5.1 to 5.10 below (for cash payments of lump sums or pensions) or 2.2 above (for rollovers).

• APRA will accept reporting of benefit payments on a ‘where known’ basis. Where the break-down of benefit payments is not known, APRA will accept reporting of unclassifiable benefits in item 5.9 ‘Other types of lump sum benefit payments’

Benefit payments for the purpose of this section are broken into the following categories:

1. Lump sum benefit payments. These are to be reported according to the classifications in items 5.1 to 5.9; and
2. Pensions. These are to be reported in aggregate in item 5.10.

Lump sum benefits

Superannuation entities that are PSTs must not fill out items 5.1 to 5.7 – fill out item 5.8 instead. All superannuation entities should classify lump sum benefit payments into the following classifications in items 5.1 to 5.9:

Note that lump sum rollovers should be included in item 2.2 and not under item 5.

5.1. Death

Report the expense for benefits that have been paid by the Trustee to the nominated beneficiary/dependent or the deceased member’s estate due to the death of a member.

Note that the majority of death benefits paid on behalf of deceased members are partially or fully recoverable from the insurer and it is industry practice to pay the benefit in the same period in which it is received from the insurer. Therefore if there is a balance in item 5.1, there should also be a balance in item 6.1.

5.2. Retirement

Report the expense for benefits paid to members as a result of retirement.

Note that retirement benefits may be rolled over to an allocated pension plan. If a transfer is to:

• another superannuation entity, then report the retirement benefit in item 2.2 ‘Members’ benefits paid’; or

• a pension provided by the same superannuation entity, then report the actual amount paid as a pension in the year under item 5.10 ‘Pensions’.

5.3. Retrenchment/redundancies

Report the expense for benefits paid to members as a result of retrenchment or redundancy.

5.4. Disability

Report the expense for benefits paid to members resulting from total and permanent disability, and for temporary disability/income protection.

Note that the majority of disability benefits paid to members are partially or fully recoverable from the insurer and it is industry practice to pay the benefit in the same period in which it is received from the insurer. Therefore if there is a balance in item 5.4, there should also be a balance in item 6.2.

5.5. Resignation

Report the expense for benefits paid to members as a result of member resignation from the employer.

5.6. Financial hardship

Report the expense for benefits paid to members by the Trustee(s) under the early release provisions relating to grounds of severe financial hardship.

5.7. Compassionate grounds

Report the expense for benefits paid to members by the Trustee(s) under the early release provisions relating to compassionate grounds.

5.8. Payments to unit holders (PST only)

This item is to be completed only by superannuation entities that are PSTs. (Other entities please complete items 5.1 to 5.7 and/or items 5.9 and 5.10 instead.) Report the expense for payments to unit holders.

5.9. Other types of lump sum benefit payments

Report the total of other lump sum benefit payments not appropriately disclosed in items 5.1 to 5.8.

Pension benefits

5.10. Pensions

Report the total value of benefits paid to members in the form of a pension. Includes complying pension, allocated pension and annuity payments. Do not include amounts resulting from the commutation of pension benefits – these should be included in items 5.1 to 5.9 above as appropriate.

5.11. Total benefit payments

Represents the sum of values reported at items 5.1 to 5.10.

6. Proceeds on insurance policies

If the breakdown of death and disability insurance proceeds is not known by the superannuation entity, report proceeds from insurers received as a result of the death of a member, under item 6.1 ‘Death’. The remaining insurance proceeds can be reported as disability under item 6.2 ‘Disability’

6.1. Death

Report the proceeds received and/or accrued for the period in relation to the death of members.

Note that the majority of death benefits paid on behalf of deceased members are partially or fully recoverable from the insurer and it is industry practice to pay the benefit in the same period in which it is received from the insurer. Therefore if there is a balance in item 6.1, there should also be a balance in item 5.1.

6.2. Disability

Report proceeds received and/or accrued in relation to disability of members, including amounts for total and permanent disability and temporary disability/income protection.

Note that the majority of disability benefits paid to members are partially or fully recoverable from the insurer and it is industry practice to pay the benefit in the same period in which it is received from the insurer. Therefore if there is a balance in item 6.2, there should also be a balance in item 5.4.

6.3. Total proceeds on insurance policies

Represents the sum of items 6.1 and 6.2.

7. Members’ death and/or disability insurance premiums expense

Represents members’ death and disability insurance premiums paid and/or accrued for the year to date.

8. Rebates received - members’ death and disability insurance

Report any rebates received or accrued from insurers in relation to death and disability insurance premiums for the year to date.

9. Net cost of member benefit insurance

Represents item 7 minus item 8.

10. Investment income

Show investment income gross of direct investment expenses (where there is a separately identifiable charge to the superannuation entity and where this charge is actually paid by the superannuation entity). For example, the following expenses should be included within the gross investment income (where applicable - consider the instructions below):

Fees and deductions associated with the generation of income on the investment portfolio of the superannuation entity – the amounts paid over to a third party should also be shown separately under item 17 ‘Investment expenses’.

Important!

In the same manner as detailed under item 1 ‘Contribution Revenue’:

Where investment income is received gross by the superannuation entity (for example the entity holds a discrete managed portfolio) and the entity pays the investment manager expenses directly, the fees should be disclosed under item 17.

Where the superannuation entity holds investments in, for example:

• unitised products;
• pooled superannuation trusts; and/or
• life office policies.

The net change in unit price will usually be paid to the superannuation entity. As the change in unit price is net of investment charges and tax, the superannuation entity is not responsible for paying these fees. Consequently these expenses are not required to be disclosed by the entity. APRA does not expect the superannuation entity to gross up the change in unit price to obtain a gross investment income value.

Do not include changes in net market value of investments – these should be included at item 12.

Disclosures regarding investment income for investments:

• held in cash management trusts, report income as ‘interest’ at item 10.1;
• held in individually managed mandates/portfolios - are required to be disclosed on a look-through basis, consistent with the disclosures for directly-held investments i.e. the income on underlying investments in the portfolio should be analysed and reported separately;
• held with external investment managers should be disclosed under the appropriate category (for example income on a PST should be disclosed under item 12.7.2) but a look-through basis is not required; and
• in PSTs, listed or unlisted unit trusts and funds placed with investment managers, report income as ‘trust distributions’ – this income is not required to be disclosed on a look-through basis.

Note that any ‘other’ investment income not included at items 10.1 to 10.4 should be included at item 14 ‘Other investment income’.

Important!

For item 10, disclose investment income received and receivable as a positive number. Investment revenue should only be recorded as a negative number when losses have occurred.

10.1. Interest

Interest is the income normally receivable on assets such as deposits, loans, bonds, and accounts receivable. Interest must be recognised and measured in accordance with current Australian Accounting Standards, UIG Consensus Views and other mandatory professional reporting requirements. This will mean that interest income is recognised on an accruals basis, unless the asset is considered to be impaired/non-performing in which case interest is to be recognised on a cash basis. Includes (but is not limited to):

• Coupon payments from fixed interest securities (i.e. Commonwealth government bonds);
• earnings on discounted securities (i.e. bank accepted bills);
• interest from deposits with banks and non-bank financial institutions;
• interest from loans and advances (to related and unrelated entities); and
• interest on finance leases.

For the purposes of this form, interest income is to be disclosed as a single line item.

10.2. Dividends

Dividend income is the income received/receivable on assets such as shares and other equity type investments in either listed or unlisted vehicles.

This includes dividends from investments in equity securities directly held by the superannuation entity (i.e. acquired from internal investment management) and underlying equity investments that form part of an external individually managed mandate.

Important!

If a superannuation entity reports dividend income being received under item 10.2, then it should disclose all imputation credits associated with this income under item 20.1.

10.3. Rent

Record all rental income from direct property investments.

10.4. Trust Distributions

The distributions received or receivable from investments in Pooled Superannuation Trusts, other listed unit trusts, unlisted trusts and funds placed with investment managers.

10.5. Total investment income/distributions

Represents the sum of items 10.1 to 10.4.

Note that ‘other’ investment income not included at items 10.1 to 10.4, such as fee and investment rebates, should be included at item 14.

10.6. Doubtful debts/bad debts expense

Report the value of doubtful debts expense (i.e. where a provision for doubtful debts has been raised) and/or bad debts written off directly against income (i.e. where there was no provision for doubtful debts), in relation to any accrued income disclosed in items 10.1 to 10.5.

Doubtful debts means it is no longer considered probable that amounts of principal or market value and any associated amounts of accrued income (e.g. interest, dividends, distributions associated with the debtor) will be able to be collected by the superannuation entity.

Important!

The doubtful debts/bad debts expense balance within item 10.6 should be less than the total amount of debtors detailed in item 11.3 ‘Total foreign exchange gains/losses (realised and unrealised)’. If it is greater, this indicates an error in the completion of the form and a validation error will occur.

10.7. Total investment income/distributions after doubtful debts expense

Represents item 10.5 less 10.6.

11. Foreign exchange (FX) gains/losses (realised and unrealised)

11.1. Physical (i.e. underlying investment funds)

Report any realised/unrealised foreign exchange gains/losses relating to the currency translation/conversion of all investments of the superannuation entity (except derivatives which are disclosed in item 11.2) which are denominated in a currency other than the Australian Dollar (AUD). A look-through basis is not required.

Do not report gains and losses attributable to the movement in the market value of the underlying investments that are denominated in a foreign currency, these are to be reported under item 12 ‘Change in net market value of investments’. Only report the gain/loss that is attributable to movements in the currency in which investments are denominated, relative to the AUD..

For item 11.1, record gains as a positive number and losses as a negative number.

11.2. Derivatives

Report any realised/unrealised foreign exchange gains/losses relating to the currency translation/conversion of derivative contracts that are:

• directly held (i.e. a look through basis is not required); and/or

• held as part of an external individually managed mandate (i.e. item 11.2 relates to all derivatives).

Such contracts may be held in relation to the underlying investment portfolios (e.g. as hedges of the interest rate or equity investment portfolios) or as outright position taking to alter the asset allocation strategy.

Note that if a superannuation entity reports FX gains/losses on derivatives under SRF 100.0 Statement of Financial Performance item 11.2, then a derivative position and a derivative holding should be disclosed within SRF 110.0 Statement of Financial Position item 3.4 ‘Direct holdings of derivatives’ and item 6 ‘Direct holdings of derivative financial instruments’ respectively.

Do not report gains or losses attributable to the movement in the market value of the derivative positions that are denominated in a foreign currency, these are to be reported under item 12.4 ‘Change in net market value of investments – Derivative financial instruments’. Only report the gain/loss that is attributable to movements in the currency in which the derivative contract is denominated, relative to the AUD.

For item 11.2, record gains as a positive number and losses as a negative number.

11.3.Total foreign exchange gains/losses (realised and unrealised)

Total foreign exchange gains/losses for physical and derivative investments (realised and unrealised). This represents the sum of items 11.1 and 11.2.

Note that if a superannuation entity reports investments with a source currency other than the AUD in SRF 110.0 Statement of Financial Position item 3.10 ‘Total Investments’, then an FX gain or loss should be reported within SRF 100.0 Statement of Financial Performance item 11.3.

12. Change in net market value of investments classified into the following:

Unrealised gains/losses

AAS 25 requires that superannuation entity assets be recorded at Net Market Value. The change in the net market value is the increase or decrease in the market value of each asset compared to the value of that asset at the beginning of the financial year. These assets are still owned by the entity at the end of the period, they have not been disposed of, and as a result, the gains or losses on the assets are unrealised. If the assets are disposed of during the year to date period, then the gains or losses are realised and are to be disclosed separately under the column “Realised Gains/Losses”.

Only include the movement in the net market value of the asset in this column. Do not include the movement in the value of the currency relative to the Australian dollar if the asset is denominated in a currency other than the Australian dollar. Movements in value attributable to the movements in exchange rates are to be separately disclosed under item 11 ‘Foreign Exchange Gains/Losses (Realised and Unrealised)’.

Where applicable unrealised gains and losses are to be reported for each of the following asset classes/categories listed below (item numbers 12.1 to 12.8.).

Important!

For item 12, record gains as a positive number and losses as a negative number.

Realised gains/losses

Where the superannuation entity disposed of an investment or asset during the year to date reporting period, the value of the gain or loss from the disposal is to be reported in this column against the appropriate line item listed (i.e. item numbers 12.1 to 12.8).

If an asset has not been disposed of during the year to date reporting period, then any gains or losses are unrealised and are to be disclosed separately against the appropriate line item (12.1 to 12.8) under the column ‘Unrealised Gains/Losses’.

Only include the movement in the market value of the asset, do not include the movement in the value of the currency relative to the Australian dollar if the asset is denominated in a currency other than the Australian dollar. Movements in value attributable to the movements in exchange rates are to be separately disclosed under item 11 ‘Foreign Exchange Gains/Losses (Realised and Unrealised)’.

Realised gains and losses are to be reported for each of the following asset classes/categories listed below (item numbers 12.1 to 12.8).

Important!

For item 12, record gains as a positive number and losses as a negative number.

Investments Directly Held by the Superannuation Entity

Items 12.1 to 12.5 relate to changes in net market value of investments that are directly held by the superannuation entity as part of the internal investment management of that entity, and do not include underlying assets/investments that are held with external investment managers.

Changes in net market value for investments of the superannuation entity that are held with external investment managers are to be reported in items 12.6 or 12.7.

12.1. Deposits, placements, loans and debt securities

Report gains/losses associated with the superannuation entity’s direct holdings of deposits, placements, loans and debt securities, whether held in Australia or overseas. Direct holdings refer to investments made by the superannuation entity resulting from internal investment management.

Include

• Gains/losses on investments in the nature of those reported in SRF 110.1 Selected Disclosure of Investments (Version A or B) at Part A ‘Deposits, Placements, Loans and Debt Securities’;
• Short-term and long-term investments; and
• Public sector and private sector investments.

Exclude

• Gains/losses associated with the investment in cash management trusts. These are to be reported in item 12.7.5 ‘Investments in unlisted retail/public offer unit trusts’; and
• Gains/losses on interest rate related derivative financial instruments. These are to be disclosed separately under the item 12.4 ‘Derivative financial instruments’.

12.2. Equity securities of listed corporations and units in listed unit trusts

Report gains/losses associated with the superannuation entity’s direct holdings of equity securities of listed corporations and listed unit trusts. Direct holdings refer to investments made by the superannuation entity resulting from internal investment management.

Include

• Gains/losses on investments in the nature of those reported in SRF 110.1 Selected Disclosure of Investments (Version B) at Part B ‘Equity Securities in Corporations and Units in Unit Trusts Listed’.

Exclude

• Gains/losses on equity related derivative contracts. These are to be disclosed separately under the item 12.4 ‘Derivative financial instruments’.
• Gains/losses on direct investments in PSTs. These are disclosed separately under item 12.7.2 ‘Pooled super trusts’.

12.3. Equity securities of unlisted corporations, units in unlisted private trusts and ventures

This includes gains/losses on the superannuation entity’s direct investment in equity securities of unlisted corporations and units in unlisted private trusts. Direct holdings refers to investments made by the superannuation entity resulting from internal investment management and does not extend to underlying investments held as part of an external individually managed mandate/portfolio.

Include

• Gains/losses on investments in the nature of those reported in SRF 110.1 Selected Disclosure of Investments (Version A) at Part B ‘Investments in Equity Securities of Unlisted Corporations and Units in Unlisted Private Trusts’ and at Part D ‘Interest in Ventures’; and
• Gains/losses on investments in the nature of those reported in SRF 110.1 Selected Disclosure of Investments (Version B) at Part D ‘Investments in Equity Securities of Unlisted Corporations and Units in Unlisted Private Trusts’ and at Part E ‘Interest in Ventures’.

Exclude

• Gains/losses on direct investments in PSTs. These are reported separately at item 12.7.2 ‘Pooled super trusts’; and
• Gains/losses on direct investments in unlisted retail/public offer unit trusts. These are reported separately at item 12.7.5 ‘Investments in unlisted retail/public offer unit trusts’.

12.4. Derivative financial instruments

Report unrealised and realised gains/losses attributable to the movement in the market value of the superannuation entity’s derivative exposures that are:

• directly held derivatives; and/or
• held as part of an external individually managed mandate (i.e. item 12.4 relates to all derivatives).

Exclude

• Unrealised or realised gains/losses relating to the currency translation of directly held foreign currency derivative contracts. These are to be separately disclosed under the heading 11.2. ‘Derivatives – Foreign exchange gains/losses (realised and unrealised)’.

12.5. Direct property investments

Report unrealised and realised gains/losses associated with the superannuation entity’s direct investment in property assets that are reported in item 3.5.1 and/or item 3.5.2 in SRF 110.0 Statement of Financial Position.

Direct holdings refers to investments made by the superannuation entity resulting from internal investment management and does not extend to underlying investments held as part of an external individually managed mandate/portfolio.

Important!

APRA is not mandating that superannuation entities conduct a valuation for direct property investments on a quarterly basis where this is not already done. Realised and unrealised gains/losses should be reported here when revaluations do occur.

Exclude

Gains/losses on investments in listed and unlisted property trusts, these are reported in the appropriate line item of the following:

• 12.2 ‘Equity securities of listed corporations and units in listed unit trusts’;
• ‘Equity securities of unlisted corporations, units in unlisted private trusts and ventures’; and
• 12.7.5 ‘Investments in unlisted retail/public offer unit trusts’.

Investments not directly held by the superannuation entity

Changes in net market value for investments of the superannuation entity that are held with external investment managers are to be reported in items 12.6 or 12.7.

Items 12.1 to 12.5 relate to changes in net market value of investments that are directly held by the superannuation entity as part of the internal investment management of that entity, and do not include underlying assets/investments that are held with external investment managers.

12.6. Funds placed with overseas investment managers

Report unrealised and realised gains and losses in the value of investments placed by the superannuation entity with overseas investment managers.

Exclude

• Amounts directly invested overseas by the superannuation entity in underlying assets such as equity securities, bonds and direct property (disclose at items 12.1 to 12.5 as appropriate); and
• Amounts placed with Australian investment managers for investment overseas (disclose under item 12.7 as appropriate).

12.7. Funds placed with investment managers in Australia classified into the following:

(For further guidance as to what is included in this category refer to the instructions for SRF 110.0 Statement of Financial Position, in particular item 3.7 of that form.)

12.7.1 Individually managed mandates/portfolios

Report unrealised and realised gains/losses on funds placed with external investment managers in the form of individually managed mandates or discretely managed portfolios where the asset portfolio is tailored for or chosen by the superannuation entity.

12.7.2 Pooled super trusts

Report unrealised and realised gains/losses associated with the superannuation entity’s investments in pooled super trusts. Exclude unitised investments with life companies where the original or primary investment is an insurance or investment policy (item 12.7.4).

12.7.3 Wholesale trusts

A wholesale trust is usually only open to institutional investors and has a high entry level. An information memorandum is usually issued rather than a prospectus. Report unrealised and realised gains/losses associated with the investments in wholesale trusts, other than PSTs (item 12.7.2), listed unit trusts (item 12.2) or unlisted retail/public offer trusts (item 12.7.5).

12.7.4 Investment and/or insurance policies held in the statutory fund of life companies

Life insurance business must be conducted through separately accounted ‘statutory funds’ within a life insurer. Report here unrealised and realised gains/losses associated with the investments in insurance or life policies. Include:

• The change in net market value of unit-linked insurance or investment policies regardless of who manages the underlying assets of these policies/products, or how the underlying assets are distributed/invested; and
• The change in net market value of policies in respect of death, total, permanent or temporary disablement.

Important!

If the superannuation entity invests in statutory funds of a life insurer and does not know the realised gains and losses, the superannuation entity should only account for the total change in net market value.

APRA will accept an estimate to be used to calculate realised and unrealised gains and losses on a pro rata basis under item 12.7.4.

12.7.5 Investments in unlisted retail/public offer unit trusts

Includes (but is not limited to):

• Changes in net market value of investments in unlisted retail/public offer cash management unit trusts; and
• Changes in net market value of investments in the nature of those reported in PART C ‘Interest in Unlisted Retail/Public Offer Trusts’, of SRF 110.1 Selected Disclosure of Investments (Version A or B).

12.8. Other (provide details in Table 2 below)

Disclose the total of all other unrealised and realised gains/losses for all other investments not separately reported in items 12.1 to 12.7. Include in Table 2 a description and amount for each type of ‘other’ change in net market value of investments.

12.9. Total gains/losses on investments

Represents the value of the total for each column - ‘Unrealised gains/losses’ and ‘Realised gains and losses’ - reported in line item numbers 12.1 to 12.8.

If a superannuation entity discloses investments under SRF 200.0 Statement of Financial Performance item 12.9, then investments should also be reported under SRF 110.0 Statement of Financial Position item 3.10 ‘Total investments’.

13. Fees and commissions

Include fees and commissions income earned by the superannuation entity for the following:

13.1. Scrip lending

Record any fee income associated with scrip lending activities of the superannuation entity. This refers to the situation where the superannuation entity buys/borrows securities from another party in exchange for cash. The superannuation entity agrees to return the securities to the other party in the future in exchange for the return of the cash (plus an additional amount of earnings, fees or commissions).

13.2. Underwriting activities

Record any fee income or commission associated with the superannuation entity providing or guaranteeing to underwrite the issue of securities (e.g. equity securities).

13.3. Other (provide details in Table 3 below)

Record the total of any fee or commission income associated with any other form of investment activities or member activities of the superannuation entity that are not separately disclosed above.

For a number of superannuation entities if the fees, once collected, are then paid over to a third party then these will be included as income under item 13 and also as expenses to the entity under item 18.

However, Table 3 should not include fees which have already been disclosed, in another item, for example, entry fees incorporated as part of the gross contributions balance reported under SRF 100.0 Statement of Financial Performance item 1.

Please provide details, including a description and amount for each ‘other’ type of fees and commissions, in Table 3 ‘Other Fees and Commissions’.

13.4. Total fees and commissions

Represents the total of items 13.1 to 13.3.

14. Other investment income (provide details in Table 4 below)

Note that the ‘other investment income’ balance disclosed in the table should be positive. Fee related income rebates, including those for wholesale investments, should be disclosed within other investment income. These rebates should be disclosed on a gross basis and be reported as income. Fee related income rebates should not be netted off against expenditure (i.e. the investment expenditure within item 17) or included as unrealised gains and losses.

14.1. Total other investment income

Disclose any other investment income under this heading that has not already been included above in this form (refer specifically item 10). Provide details including a description and amount for each type of ‘other investment income’ in Table 4.

15. Other Income (provide details in Table 5 below)

15.1 Total other income

Include income earned that does not fall within the specific items recorded in items 1 to 14 above. Provide details including a description and amount for each type of ‘other income’ in Table 5.

16. Total Income

Represents the sum of the following items:

Add:

• 1.5. Total contributions; and
• 2.3. Net Rollovers.

Less:

• 3.0. Repatriation to employer sponsor;
• 4.3. Total Contribution Tax and Surcharge;
• 5.11. Total Benefit Payments; and
• 9.0. Net Cost of Member Benefit Insurance.

Add:

• 6.3. Total Proceeds on Insurance Policies;
• 10.7. Total investment income/distributions after doubtful debts expense;
• 11.3. Total foreign exchange gains/losses (realised & unrealised);
• 12.9. Total gains/losses on investments – Unrealised Gains/Losses;
• 12.9. Total gains/losses on investments – Realised Gains Losses;
• 13.4. Total fees and commissions;
• 14.0. Total Other Investment Income; and
• 15.0. Total Other Income.

17. Investment Expenses

Include all expenses incurred for the year to date, which are associated with the generation of income on the investment portfolio of the superannuation entity, under the most relevant item from 17.1 to 17.4 below. Do not include expenses of an administrative or operating nature – these are separately disclosed in item 18 below.

Important!

Disclose all expenses here which are deductible from the gross investment income reported in item 10 to arrive at net investment income and which the superannuation entity pays directly to a third party. They should not be reported under item 18.

Important!

Do not net the following revenue items off against investment expenses:

• fee related income rebates off against investment expenses; or
• rebates provided by investment managers (often in the form of extra units when investment performance does not meet targets).

These should be included under section 14 other investment income instead.

Commissions or deductions should be shown on a gross basis here and should not be used to reduce the income on investments at items 10, 11 and 12. For example, where there is a separately identifiable charge to the superannuation entity, fees charged by the investment manager should not be netted against investment income.

17.1. Investment management fees

Record the amount of fee expense of the superannuation entity that relates to the management of the superannuation entity’s investment portfolios. Include fees paid to investment managers, including independent third parties as well as related entities of the superannuation entity. Include asset consultant fees at this item.

17.2. Custodian fees

Report the expense of the superannuation entity that was incurred in relation to custodial services rendered to the superannuation entity. A custodian is an entity that holds title of the assets on behalf of the superannuation entity, but where the powers of investment management remain with the Trustee.

17.3. Property maintenance costs

Report all costs relating to an investment in direct property. Includes (but is not limited to):

• Repairs and maintenance;
• Ongoing running costs;
• Property management fees;
• Valuation fees; and
• Stamp duty.

17.4. Other investment expenses (provide details in Table 6 below)

Report the total of any other investment expenses under this heading that have not already been included in items 17.1 to 17.3. For example, bank fees, commissions expense, brokerage and transaction costs (excluding those already reported per items 17.1 to 17.3 above) may be included in this item. Provide details of the amount and type of each ‘other’ investment expense in Table 6 below.

17.5. Total investment expenses

Represents the sum of items 17.1 to17.4.

18. Operating Expenses

Include year to date expenses incurred which are not ordinarily directly associated with the generation of investment income (i.e. expenses that are not directly related to the investment portfolio of the superannuation entity, but more towards the administration of the superannuation entity). Expenses should be recorded inclusive of GST but net of any RITC (Reduced Input Tax Credit) that can be claimed.

Note that where trustee expenses are paid direct by the superannuation entity and include marketing, office, staff, etc they should be split as follows:

• Trustee remuneration and trustee specific expenses (i.e. travel claim) are to be reported in item 18.4; and
• Expenses for office, staff, and trustee indemnity insurance are to be reported at either 18.3 or 18.6.

18.1. Interest expense

Any interest expense paid or payable by the superannuation entity is to be recorded in this item.

18.2. Management fees (other than investment management)

Report in this item any fees paid/payable by the superannuation entity for management services provided to the superannuation entity.

Include the following in this item

• consulting fees; and
• management fees collected by the superannuation entity from members’ account, i.e. fees earned based on a % of the funds under management, which are then paid over to a third party. Include trailing commissions paid to third parties such as financial advisors.

Exclude fees for the following in this item:

• Investment management and asset consultant fees, these are reported under ‘Investment Expenses’ in item 17.1;
• Custodian fees, these are reported under ‘Investment Expenses’ in item 17.2;
• Administration fees, these are reported under ‘Operating Expenses’ in item 18.3; and
• Directors/Trustees fees/expenses, these are reported under ‘Operating Expenses’ in item 18.4

18.3. Administration fees

Report in this item any fees paid/payable by the superannuation entity for administration services provided to the superannuation entity.

May include (but is not limited to):

• All internal or outsourced administration costs (unless these are charged directly to the employer or union sponsor);
• Administration fees charged by/paid to the employer sponsor for services rendered to the superannuation entity;
• Expenses incurred to administer switches of members’ investment choices (but not investment manager fees or other investment expenses already included in item 17 above); and
• Employee costs such as salaries and on-costs for direct employees of the superannuation entity.

Exclude fees for the following in this item:

• Investment management fees, these are reported under ‘Investment Expenses’ in item 17.1
• Custodian fees, these are reported under ‘Investment Expenses’ in item 17.2
• Management fees, these are reported under ‘Operating Expenses’ in item 18.2
• Directors/Trustees fees/expenses, these are reported under ‘Operating Expenses’ in item 18.4

18.4. Directors/Trustee fees/expenses

Report in this item fees paid/payable by the superannuation entity to the Directors/Trustee(s) for services in carrying out the functions of a Trustee/director, including any consulting or administration services provided. Do not include amounts paid to Directors/Trustee(s) that represent a direct reimbursement of expenses incurred by the Directors/Trustee(s) on behalf of the superannuation entity. Do not include the expense for Trustee indemnity insurance (this is included at item 18.6 below). Do not include commissions collected by the trustee for payment to a third party.

18.5. Fees paid to auditor of the superannuation entity

Report in this item all fees and expenses paid/payable by the superannuation entity to the external audit firm for the rendering of professional services to the superannuation entity. This includes all fees and expenses paid to the firm which is conducting the external audit of the superannuation entity, for the provision of both audit and non-audit services.

18.6. Other operating expenses (provide details in Table 7 below)

Disclose any other operating expenses under this heading that have not already been included above in items 18.1 to 18.5 of this form. Please provide in Table 7 a description of the nature and amount of each item of expense reported in this section.

Amounts disclosed under item 18.6 could include (but are not limited to):

• Commissions or deductions from contributions which are then paid out to a third party, such as entry and deferred entry fees, should be shown here. They should not be used to reduce contribution income at item 1 or reported under item 17 ‘Investment expenses’;
• APRA levy and Financial Assistance Funding Levy;
• Trustee indemnity insurance premiums;
• Legal fees;
• Travel and entertainment; and
• Training, seminars and subscriptions.

Do not show bad or doubtful debts expense here. This should be shown at item 10.6 above.

18.7. Total operating expenses

Represents the total of the operating expenses disclosed in items 18.1 to 18.6 above.

19. Net operating performance before tax expense

This amount represents the following:

• Item 16. Total Income; LESS
• Item 17.5. Total Investment Expenses; LESS
• Item 18.7. Total Operating Expenses.

20. Tax expense on net operating performance

This amount represents the tax expense associated with item 19, calculated in accordance with current Australian Accounting Standards, excluding the tax expense in relation to taxable contributions made into the superannuation entity (already reported at item 4.1) i.e. the tax expense on net operating performance should equate to the superannuation entities’ reported tax expense less the amount of tax allowed for employer contributions, deductible personal contributions and superannuation surcharge.

The expected tax expense on net operating performance as disclosed in SRF 200.0 Statement of Financial Performance should approximate to:

• Tax expense – as shown in the superannuation entities’ financial statements; LESS
• Contribution tax - as calculated at item 4.1 ‘Contribution Tax’.

Where the tax expense has been calculated it should be reported at this item. For the purposes of quarterly reporting APRA strongly encourages entities to contact their tax advisors and report estimates of tax expense and tax liabilities/assets.

Note: Amounts disclosed in items 20.1 to 20.5, where appropriate, are already included in the calculation of item 20 ‘Tax expense on net operating performance’. Items 20.1 to 20.5 request the disclosure of these items only. These should not be added in the calculation of item 21 as they are already reflected in the value recorded for item 20.

APRA is not mandating that superannuation entities are required to calculate and report these items on a quarterly basis where this is not done by the superannuation entity. Report the following where known.

20.1. Total imputation credits

Report the total value of dividend imputation credits associated with total dividend income received. This amount is not added into the calculation of total dividend income (item 10.2) or total investment income (items 10.7 and 14).

A complying superannuation entity which receives Australian company dividends will have its assessable income for taxation purposes grossed up to include the amount of any imputation credits attaching to those dividends (i.e. represents the company taxation paid in relation to those dividends). The superannuation entity is then entitled to a taxation rebate of the full amount of the imputation credits.

Important!

If a superannuation entity has imputation credits reported under item 20.1, then it must be in receipt of dividend income with which the credits are associated. This dividend income should be disclosed under item 10.2.

Imputation credits can also be received through distributions by Unit Trusts.

20.2. Total foreign tax credits

A superannuation entity is entitled to a credit for taxation paid on foreign income, up to the amount of Australian tax payable in respect of that income.

Important!

When a superannuation entity reports foreign tax credits under SRF 100.0 Statement of Financial Performance item 20.2, APRA expects the entity to also report holdings of investments outside Australia in SRF 110.0 Statement of Financial Position item 3.10 ‘Total investments’. As a consequence of this, the amount included under item 3.10 in the ‘total net market value’ column should be greater than the amount included under item 3.10 in the ‘net market value in Australia’ column.

Investments outside Australia are investments which are managed by an investment manager who does not have an Australian operation, and the contract to manage the investment is not with an Australian resident manager.

20.3. Loan interest rebate

Superannuation entities that receive interest in respect of Commonwealth, State or semi-government securities issued before 1 November 1968 are entitled to a rebate of taxation calculated at 10 cents for each dollar of interest received.

20.4. Reversionary bonus rebate

A complying superannuation entity is entitled to a rebate of tax under ITAA 36 section 160AAB (5A) where an “eligible 26 AH amount” is included in its assessable income under ITAA36 section 26AH. These amounts are reversionary bonuses (i.e. bonuses paid on maturity, forfeiture or surrender of a life assurance policy) received under short-term life assurance policies issued by a life office whose investment income was not tax exempt or by an SGIO or friendly society. The rebate can be offset against tax payable from any source, but is not refundable.

20.5. Total trust distributions that are exempt from taxation

Report all distributions from trusts that are not subject to taxation in the hands of the superannuation entity. This may include distributions from Pooled Superannuation Trusts or a distribution of capital by a trust.

Tax exempt distributions should also be included in item 20.5 when applicable to the superannuation entity. Tax deferred distributions must not be included.

21. Net operating performance after tax expense

This amount represents item 19 ‘Net operating performance before tax expense’ less item 20 ‘Tax expense on net operating performance’.

With regards to an accumulation entity, the expectation is for this balance LESS the benefits paid (shown in item 5.11 on SRF 100.0 Statement of Financial Performance) to equal to benefits accrued as a result of operations.

With regards to a defined benefit entity, a similar reconciliation will be performed.

22. Net assets available to pay benefits at the beginning of the financial year

Report in this field the value of net assets of the superannuation entity available to pay member benefits as at the beginning of the financial year. This amount should be equal to:

• item 12 on SRF 110.0 Statement of Financial Position per the APRA return for the previous financial year; or
• to net assets available to pay member benefits as at the beginning of the financial year as reported under item 12 on SRF 110.0 Statement of Financial Position in the previous quarter. Note that this option only applies to quarters 2, 3 and 4; and
• item 23 on SRF 100.0 Statement of Financial Performance per the APRA return for the previous financial year.

Note that the opening balance of assets to pay benefits at the beginning of the financial year on the annual return under SRF 200.0 Statement of Financial Performance item 22 must equal the opening balance of assets to pay benefits on the quarterly returns under SRF 100.0 Statement of Financial Performance item 22.

23. Net assets available to pay benefits at the end of the reporting period

This amount represents the sum of item 21 ‘Net operating performance after tax expense’ and item 22 ‘Net assets available to pay benefits at the beginning of the financial year’. Note that the net assets balance under item 23 must equal the net assets disclosed in SRF 110.0 Statement of Financial Position item 12 ‘Net assets available to pay benefits’ for each quarter. If this item is not the same as item 12 in SRF 110.0 Statement of Financial Position then the items responsible for the difference should be listed in Table 8 as requested at item 23.1

23.1. Other items required to reconcile item 23 on SRF 100.0 Statement of Financial Performance and item 12 on SRF 110.0 Statement of Financial Position (provide details in Table 8 below)

Report in Table 8 items required to reconcile item 23 ‘Net assets available to pay benefits at the end of the financial year’ to item 12 in SRF 110.0 Statement of Financial Position. For example, extraordinary items recognised in accordance with current Australian Accounting Standards that do not form part of the operating performance at item 21. Provide details including the description and amount of the reconciling items.

Quarterly Reporting Requirements and General Instruction Guide

Entities subject to quarterly reporting

Trustees of superannuation entities that are regulated by APRA, including the following entities, are required to complete the quarterly reporting requirements listed in the Reporting Requirements Table below where the total assets of the superannuation entity are equal to or exceed $50m as at the last day of the entity’s most recent year of income:

• Public Offer Superannuation entities;
• Other APRA regulated superannuation entities;
• Multi-Member Approved Deposit Funds;
• Pooled Superannuation Trusts; and
• Eligible Rollover Funds.

Excluded

• Small APRA Funds (SAFs); and
• Single-member Approved Deposit Funds.

Reporting Requirements Table

SRF 110.1 Selected Disclosure of Investments (Version A) and (Version B)

A trustee of a superannuation entity with total assets equal to or greater than $50m on the last day of its most recent year of income is only required to complete one version of this form. The version of this form that will be appropriate for a superannuation entity will depend on whether a superannuation entity has total assets that qualify it to be considered within the largest 200 superannuation entities in the industry.

Where a superannuation entity has total assets that qualify it to be considered within the largest 200 superannuation entities in the industry, it is required to complete version B of this form. The ABS has indicated that it requires only these entities to be subject to the specific reporting requirements that are contained in this form.

Version A of this form is only to be completed by a superannuation entity where the total assets of the superannuation entity are equal to or greater than $50m on the last day of the entity’s most recent year of income but the superannuation entity is not considered to be within the largest 200 entities in the industry, in terms of total asset size. Version A of this form only includes the specific reporting requirements of the APRA.

APRA will advise those superannuation entities that are within the ‘top 200’ grouping and the reporting package will be customised (in the D2A reporting forms) so that the correct version is automatically applied to the superannuation entity.

Application of the threshold for quarterly reporting

The application of quarterly reporting is to be determined by trustees of superannuation entities at the start of the financial year. A determination regarding the application of the quarterly reporting requirements to the superannuation entity is effective for the entire financial year regardless of subsequent increases and decreases in asset size of the superannuation entity during that financial year (e.g. where the total assets of the superannuation entity subsequently decrease below the $50m in total assets threshold).

Audit requirements

Quarterly reporting requirements are not subject to audit.

Reporting period

Quarterly reporting periods are based on the year of income of the superannuation entity not a calendar year basis. Quarters are defined as four periods of three whole months each.

Important!

The financial information requested in these quarterly forms is to be reported as at the last day of the reporting period on a financial year to date basis of the superannuation entity, rather than for the individual quarter alone.

Lodgement requirements

Forms required on a quarterly basis are to be lodged within 25 business days after the end of the reporting quarter. The lodgement deadline is predominantly a requirement of the Australian Bureau of Statistics for the purposes of collating and preparing the national aggregates and statistics.

Four sets of quarterly returns are required each year.

Amendments

Where the superannuation entity makes a material adjustment to any data relating to quarter(s) for which a return has been lodged, amended quarterly returns for the quarter (and for any subsequent quarters affected by the adjustment) must be lodged with APRA within 25 business days of the adjustment being made.

Basis of preparation

In completing these forms, unless otherwise specifically stated in the instruction guide for each form:

Basis of accounting (Cash vs Accruals):

The forms should be prepared on a basis consistent with the accounting treatment (cash or accruals basis) adopted by the superannuation entity for annual financial reporting purposes. APRA would ordinarily expect that regulated superannuation entities are ‘reporting entities’, and will therefore apply an accruals basis, in accordance with the requirements of Australian Accounting Standards and the guidance in APRA Superannuation Circular No. V.A.2.

Important!

Once selected, the basis of accounting used must be consistent for all 4 quarterly returns and the corresponding annual return;

Direct vs Indirect investments:

Certain items on the forms distinguish between ‘directly held’ investments and those which are not directly held.

• Directly held investments are those made by the superannuation entity in its own name, as part of the internal investment management function. This includes investments held by a custodian where these are held in Trust for the entity and the superannuation entity retains the decision-making function regarding the making and redeeming of particular investments within the portfolio.
• Investments that are not directly held include underlying investments that are held with external investment managers (such as investments in PSTs or unit trusts), and investments held via individually managed mandates/portfolios where the decision-making function regarding the making and redeeming of particular investments within the portfolio may rest with the investment manager.

Disclosures regarding investments that are not directly held are not required to be made on a look-through basis.

Netting off of Amounts:

Unless otherwise specifically stated, data in the forms should be reported on a gross basis, with no netting, even where the institutions comply with the prerequisites for netting outlined in the current Australian Accounting Standards..

Scope:

• The forms are to be prepared based on the total transactions of the superannuation entity regardless of the residency status of members or the location or registration of the asset or liability items;
• Do not include a consolidation of any controlled entities;
• Unless otherwise indicated, report all items on the form as positive numbers; and
• Superannuation entities are to follow Australian Accounting Standards and other mandatory reporting requirements and other statutory requirements where possible, regarding the interpretation, recognition and measurement of items of income, expense, assets and liabilities; notably AAS 25 ‘Financial Reporting of Superannuation Plans’.

Net Market Value:

AAS 25 requires a superannuation entity to adopt net market value measurement where the superannuation entity is deemed to be a reporting entity. For the purposes of prudential reporting all superannuation entities are to adopt net market value measurement irrespective of their deemed reporting entity status.

Net market value has the same meaning as defined in the Australian accounting standard/AAS 25. A definition is provided in the ‘Glossary of Terms’. Any change in the values at which such assets are measured must be recognised as revenues (or losses) in the reporting period in which the change occurs.

Accounting Standards AAS 4 ‘Depreciation’, AAS 10 ‘Recoverable Amount of Non-Current Assets’ and AASB 1041 ‘Revaluation of Non-Current Assets’ do not apply to such investments.

Market value of charged/encumbered assets

If an asset is in any way subject to a charge, covenant, encumbrance, option to purchase or any other arrangement by way of agreement or statute, that restricts the net market value of the asset, the market value needs to reflect the existence of these arrangements. For example, if the superannuation entity has agreed to deliver an asset to a purchaser at a price below the arms length market value, the market value cannot exceed the agreed price.

Unit of measurement

The above forms are to be prepared in thousands of Australian dollars (AUD), rounded to the nearest thousand, i.e. 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 current Australian accounting standards regarding Foreign Currency Translation.

The general requirements 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 re-translated 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 (e.g. claim payments, reinsurance recoveries).

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.

The general requirements for the accounting treatment of exchange differences arising on translation are:

1. Exchange differences must be recognised as either revenues or expenses in the calculation of net profit or loss, in the reporting period in which the exchange rates change.
2. Exchange differences that arise in respect of foreign currency monetary items which are directly attributable to the acquisition, construction or production of an asset that takes a long period of time to get ready for its intended use or sale, must be capitalised (net of any effects of a hedge) as part of the cost of that asset.

General definitions

The Glossary contains definitions of commonly used terms in the forms and instruction guides to the forms, listed in the Reporting Requirements Table.

Form Name

Derivative Financial Instruments

Exposure Concentrations

Reporting period

Quarterly reporting periods are based on the year of income of the superannuation entity not a calendar year basis. Quarters are defined as four periods of three whole months each.

Important!

The financial information requested in these quarterly forms is to be reported as at the last day of the reporting period on a financial year to date basis of the superannuation entity, rather than for the individual quarter alone.

Lodgement requirements

Forms required on a quarterly basis are to be lodged within 25 business days after the end of the reporting quarter. The lodgement deadline is predominantly a requirement of the Australian Bureau of Statistics for the purposes of collating and preparing the national aggregates and statistics.

Four sets of quarterly returns are required each year.

Amendments

Where the superannuation entity makes a material adjustment to any data relating to quarter(s) for which a return has been lodged, amended quarterly returns for the quarter (and for any subsequent quarters affected by the adjustment) must be lodged with APRA within 25 business days of the adjustment being made.

Basis of preparation

In completing these forms, unless otherwise specifically stated in the instruction guide for each form:

Basis of accounting (Cash vs Accruals):

The forms should be prepared on a basis consistent with the accounting treatment (cash or accruals basis) adopted by the superannuation entity for annual financial reporting purposes. APRA would ordinarily expect that regulated superannuation entities are ‘reporting entities’, and will therefore apply an accruals basis, in accordance with the requirements of Australian Accounting Standards and the guidance in APRA Superannuation Circular No. V.A.2.

Important!

Once selected, the basis of accounting used must be consistent for all 4 quarterly returns and the corresponding annual return;

Direct vs Indirect investments:

Certain items on the forms distinguish between ‘directly held’ investments and those which are not directly held.

• Directly held investments are those made by the superannuation entity in its own name, as part of the internal investment management function. This includes investments held by a custodian where these are held in Trust for the entity and the superannuation entity retains the decision-making function regarding the making and redeeming of particular investments within the portfolio.
• Investments that are not directly held include underlying investments that are held with external investment managers (such as investments in PSTs or unit trusts), and investments held via individually managed mandates/portfolios where the decision-making function regarding the making and redeeming of particular investments within the portfolio may rest with the investment manager.

Disclosures regarding investments that are not directly held are not required to be made on a look-through basis.

Netting off of Amounts:

Unless otherwise specifically stated, data in the forms should be reported on a gross basis, with no netting, even where the institutions comply with the prerequisites for netting outlined in the current Australian Accounting Standards..

Scope:

• The forms are to be prepared based on the total transactions of the superannuation entity regardless of the residency status of members or the location or registration of the asset or liability items;
• Do not include a consolidation of any controlled entities;
• Unless otherwise indicated, report all items on the form as positive numbers; and
• Superannuation entities are to follow Australian Accounting Standards and other mandatory reporting requirements and other statutory requirements where possible, regarding the interpretation, recognition and measurement of items of income, expense, assets and liabilities; notably AAS 25 ‘Financial Reporting of Superannuation Plans’.

Net Market Value:

AAS 25 requires a superannuation entity to adopt net market value measurement where the superannuation entity is deemed to be a reporting entity. For the purposes of prudential reporting all superannuation entities are to adopt net market value measurement irrespective of their deemed reporting entity status.

Net market value has the same meaning as defined in the Australian accounting standard/AAS 25. A definition is provided in the ‘Glossary of Terms’. Any change in the values at which such assets are measured must be recognised as revenues (or losses) in the reporting period in which the change occurs.

Accounting Standards AAS 4 ‘Depreciation’, AAS 10 ‘Recoverable Amount of Non-Current Assets’ and AASB 1041 ‘Revaluation of Non-Current Assets’ do not apply to such investments.

Market value of charged/encumbered assets

If an asset is in any way subject to a charge, covenant, encumbrance, option to purchase or any other arrangement by way of agreement or statute, that restricts the net market value of the asset, the market value needs to reflect the existence of these arrangements. For example, if the superannuation entity has agreed to deliver an asset to a purchaser at a price below the arms length market value, the market value cannot exceed the agreed price.

Unit of measurement

The above forms are to be prepared in thousands of Australian dollars (AUD), rounded to the nearest thousand, i.e. 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 current Australian accounting standards regarding Foreign Currency Translation.

The general requirements 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 re-translated 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 (e.g. claim payments, reinsurance recoveries).

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.

The general requirements for the accounting treatment of exchange differences arising on translation are:

1. Exchange differences must be recognised as either revenues or expenses in the calculation of net profit or loss, in the reporting period in which the exchange rates change.
2. Exchange differences that arise in respect of foreign currency monetary items which are directly attributable to the acquisition, construction or production of an asset that takes a long period of time to get ready for its intended use or sale, must be capitalised (net of any effects of a hedge) as part of the cost of that asset.