Reporting Standard SRS 110.0 (2005)

Statement of Financial Position

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 position.

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 110.0 Statement of Financial Position (Form SRF 110.0) 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 110.0 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 110.0, in respect of the entity, for each 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 110.0 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) (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 110.0 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 position.

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 110.0 Statement of Financial Position (Form SRF 110.0) 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 110.0 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 110.0, in respect of the entity, for each 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 110.0 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) (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 110.0 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 110.0 Statement of Financial Position

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 a least $50m at the end of the most recent year of income of the entity.

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.

Reporting Form SRF 110.0

Statement of Financial Position

Instruction Guide

Completion of SRF 110.0 Statement of Financial Position

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 a least $50m at the end of the most recent year of income of the entity.

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 on the financial position of the superannuation entity. Information reported in this form is requested by both APRA and the Australian Bureau of Statistics. The information reported in this form is prudentially important, as it forms part of APRA’s monitoring and analysis framework for individual superannuation entities and the industry.

This Guide has been prepared to assist in the completion and lodgement of SRF 110.0 Statement of Financial Position. For ease of use, the Guide has been split into three main sections as follows:

• Lodgement and validation of SRF 110.0 Statement of Financial Position;
• General guidance – this guidance provides principles that should be applied to all items throughout SRF 110.0 Statement of Financial Position; 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 110.0 Statement of Financial Position

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 110.0 Statement of Financial Position 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 SRS 100.0 Statement of Financial Performance for each quarter.

General guidance for completion of SRF 110.0 Statement of Financial Position

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 110.0 Statement of Financial Position 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. Credit 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 110.0 Statement of Financial Position. 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.

Important!

If a balance (for example, an investment balance within item 3) has moved significantly since the previous quarter, the Trustee may be requested to explain or verify this movement to APRA.

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, institutions are required to disclose data 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, entry fees, deferred entry fees, commissions, management fees and any other ongoing fees or charges deducted from the contributions received (where applicable to the superannuation entity); 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

Assets

Assets are to be measured at net market value.

1. Securities purchased under agreements to resell

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 interest). Where the transferee of the securities effectively receives a lender’s rate of return (i.e. the underlying risks and rewards of ownership of the underlying securities effectively remain with the counterparty as transferor), these transactions are to be accounted for as collateralised lending activities (on-balance sheet exposures).

Under this method of accounting, the following treatment is to be applied:

• The asset account termed “Securities purchased under agreements to resell”, represents the receivable due from counterparties from whom the securities have been borrowed and with whom cash has been lodged.
• The superannuation entity’s securities investments recorded on the statement of financial position are not increased by the securities subject to this agreement.

Securities sold under agreements to repurchase should be recorded under item 7.1 below.

2. Receivables

2.1. Total investment income receivable

Report the total of all investment income that is receivable by the superannuation entity. Includes (but is not limited to): Interest, dividends, unit trust distributions, and rental income that is accrued but not yet received. Do not include receivables relating to sales of investments or outstanding fees which are reported in item 2.8 ‘Other receivables’.

2.2. Provision for doubtful debts

Record the amount of any provision for doubtful debts that relates to the receivables recorded in item 2.1 above.

Doubtful debt means it is no longer considered probable that amounts of accrued investment income (e.g. interest, dividends, distributions associated with the investment/asset) will be able to be collected by the superannuation entity.

2.3. Total investment income receivable net of doubtful debts

Represents item 2.1 less item 2.2.

2.4. Member contributions receivable

Include contributions from members which are receivable in respect of the reporting period (i.e. due but not received) by the superannuation entity, where known by the superannuation entity. For further guidance as to what is included in ‘member’ contributions refer to the instructions for SRF 100.0 Statement of Financial Performance, in particular item 1.2 of that form.

2.5. Employer contributions receivable

Include contributions from employers which are receivable in respect of the reporting period (i.e. due but not received) by the superannuation entity, where known by the superannuation entity. For further guidance as to what is included in ‘employer’ contributions refer to the instructions for SRF 100.0 Statement of Financial Performance, in particular item 1.1 of that form. Superannuation entities for public sector employees please read item 2.6 below before completing this item.

2.6. Contributions receivable from the Government

Record amounts receivable from Commonwealth and State Governments in respect of recognised unfunded liabilities to superannuation entities for public sector employees. Contributions receivable from the government in respect of the reporting period, where these related to a fully funded superannuation entity for public sector employees, should be included under item 2.5 above.

2.7. Insurance proceeds receivable

Report proceeds receivable on insurance claims that have been made/accepted by the insurer during the year to date, but are not yet received from the insurer as at the end of the reporting period. Amounts should only be reported here when they are recognised for accounting purposes under current Australian Accounting Standards.

If a superannuation entity has insurance proceeds receivable under item 2.7, it should also report insurance proceeds income and/or insurance premiums expense in SRS 100.0 Statement of Financial Performance item 6.3 ‘Total proceeds on insurance policies’ and SRS 100.0 Statement of Financial Performance item 7 ‘Members death and/or disability insurance premiums expense’ respectively.

2.8. Other receivables & Other assets (provide details in Table 1 below)

Report in Table 1 details, including a description and amount, for any other receivables of the superannuation entity not specifically reported in the items listed above in the form. Includes (but is not limited to):

• Prepayments;
• other assets not held for investment purposes (e.g. fixed assets);
• receivables relating to sales of investments where the monies have not yet been received;
• outstanding fees; and
• refundable GST.

2.9. Total receivables

This represents the sum of items 2.3 to 2.8.

3. Investments

Net market value

• In the “Total Net Market Value” column for items 3.1 to 3.9, report the net market value of local investments in Australian Dollars, and of investments in foreign currencies converted into Australian Dollars.
• In the “Net Market Value in Australia” column for items 3.1 to 3.9, report the net market value of investments whose source currency is Australian Dollars (i.e. the investment does not have exposure to foreign currency gains/losses in converting the value into Australian currency).

Both of the above columns should be completed as appropriate.

Items 3.1 to 3.5 relate to investments that are directly held by the superannuation entity as part of the internal investment management of the superannuation entity and do not include underlying assets/investments that are held with external investment managers. Investments of the superannuation entity that are held with external investment managers are to be reported in items 3.6 or 3.7. Where the superannuation entity’s investments are held by a custodian on behalf of the entity, the investments held by the custodian are treated as the investments of the superannuation entity and should be classified as direct or indirect investments according to the criteria above.

Investments directly held by the superannuation entity

Items 3.1 to 3.5 relate to 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.

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.

Investments of the superannuation entity that are held with external investment managers are to be reported in items 12.6 or 12.7.

3.1. Deposits, placements, loans and debt securities

Depending on which Version of SRF 110.1 Selected Disclosure of Investments is applicable:

• Total should agree to SRF 110.1 Selected Disclosure of Investments Version A: ‘’ PART A item 3 ‘Total deposits, placements, loans and securities’ or
• Total should agree to SRF 110.1 Selected Disclosure of Investments Version B: “PART A item 4 ‘Total deposits, placements, loans and securities’

Exclude

• Investment in unlisted retail/public offer cash management unit trusts. These are to be reported under item 3.7.5; and
• Interest-rate related derivative financial instruments. These are to be reported separately under item 3.4 (where the exposure represents a net gain to the superannuation entity) or in item 6 (where the exposure represents a net loss).

Important!

SRF 110.1A Selected Disclosure of Investments: Total Net Market Value column reported in SRF 110.0 Statement of Financial Position item 3.1 should agree with the Total ‘Net Market Value’ column of SRF 110.1A Selected Disclosure of Investments, PART A, item 3 Total deposits, placements, loans and debt securities.

OR

SRF 110.1B Selected Disclosure of Investments: Total of SRF 110.1B Selected Disclosure of Investments, PART A, item 4 Total deposits, placements, loans and securities should agree with ‘Total net market value’ reported in SRF 110.0 Statement of Financial Position in item 3.1. ‘Deposits, placements, loans and debt securities’.

3.1.1. Deposits

Report cash and deposits with organisations issued with an Australian Banking Authority and amounts placed with short term and other money market corporations, permanent building societies etc.

3.1.2. Placements, loans and debt securities

Report the net market value of these investments including (but not limited to):

• placements, loans with, and debt securities issued by Individuals, Unlisted private incorporated entities, and Unlisted private unincorporated entities (including unlisted private trusts);
• other placements, loans and debt securities;
• Short term debt securities (e.g. bills of exchange ,certificates of deposit, commercial paper, promissory notes); and
• Long term debt securities (e.g. Treasury Bonds, securitised instruments).

Exclude

Deposits issued by Authorised Deposit Taking Institutions. These should be included at item 3.1.1.

3.2. Direct holdings of equity securities of listed corporations and units in listed unit trusts

Report the net market value of the superannuation entity’s direct holdings of equity securities (i.e. shares) of listed corporations and units in listed unit trusts on all exchanges.

Exclude

• Investment in unlisted retail/public offer cash management unit trusts. These are to be reported under item 3.7.5;
• Equity related derivative contracts. These are to be disclosed separately under the item 3.4 or item 6 “Derivative financial instruments”; and
• Investments in PSTs. These are disclosed separately under item 3.7.2 ‘Pooled super trusts’.

Important!

Total of SRF 110.1B Selected Disclosure of Investments, PART B, item 6 ‘Total direct equity investments that are listed on the ASX’, column ‘Net market value at the end of the reporting period’ should agree with ’Net Market Value in Australia’ column for item 3.2 ‘Direct holdings of equity securities of listed corporations and units in listed unit trusts’ in SRF 110.0 Statement of Financial Position.

3.3. Direct holdings of equity securities of unlisted corporations, units in unlisted private trusts and interests in ventures

Report the net market value of the superannuation entity’s investment in equity securities (e.g. shares) of unlisted corporations, units in unlisted private unit trusts and venture operations. Total should agree to SRF 110.1 Selected Disclosure of Investments either

• SRF 110.1 Selected Disclosure of Investments version A: Total of PART B and PART D (refer below); or

• SRF 110.1 Selected Disclosure of Investments version B: Total of PART C, PART D and PART E (refer below)

Exclude

• Investments in PSTs. These are disclosed separately under item 3.7.2 ‘Pooled super trusts’.

Important!

SRF 110.1A Selected Disclosure of Investments: ‘Total Net Market Value’ column reported in SRF 110.0 Statement of Financial Position for item 3.3 ‘Direct holdings of equity securities of unlisted corporations, units in unlisted private trusts and interests in ventures’.

should agree with

The sum of the total of SRF 110.1A Selected Disclosure of Investments, PART B, column 6 PLUS SRF 110.1A Selected Disclosure of Investments, PART D, column 5

OR

SRF 110.1B Selected Disclosure of Investments: The sum of SRF 110.1B Selected Disclosure of Investments, PART D, Section 1, item 1.4 PLUS SRF 110.1B Selected Disclosure of Investments PART D, Section 2 (Table 3) ‘Total’ PLUS SRF 110.1B Selected Disclosure of Investments, PART E ‘Total’

should agree to

SRF 110.0 Statement of Financial Position item 3.3 ‘Direct holdings of equity securities of unlisted corporations, units in unlisted private trusts and interests in ventures.

3.4. Direct holdings of derivative financial instruments

Report the net market value of derivatives exposure of the superannuation entity that is reported in SRF 110.2 Derivative Financial Instruments item 3, where the net market value of the exposure represents a net gain to the superannuation entity. This only relates to derivative financial instruments that are directly held and managed by the superannuation entity (i.e. transacted as part of internal investment management).

Exclude

• The aggregate net market value of derivatives held by the superannuation entity where this represents a net loss to the superannuation entity. This is to be reported under ‘Liabilities’ in item 6 ‘Direct holdings of derivative financial instruments’; and
• Derivative investments held through an external individually managed mandate/portfolio or discretely managed portfolio (i.e. for this item, the superannuation entity is not required to look through the portfolio to the underlying investments to ascertain the derivatives exposure). Derivatives in externally individually managed mandates should be shown in SRF 110.0 Statement of Financial Position item 3.9 ‘Other investments’.

3.5. Direct holdings of property

Report the total of the superannuation entity’s direct holdings of property investments. For prudential reporting purposes a property investment exists where the investment (earnings and capital value) are dependent on the cash flows generated by the property through sale or rental income. APRA does not require property holdings to be valued quarterly; the value at last valuation date is acceptable for quarterly reporting.

Include:

Property investments acquired as part of the internal investment management of the superannuation entity.

Exclude:

• Underlying property investments held in the form of an external individually managed mandate/portfolio or discretely managed portfolio. The value of these investments is to be reported in the appropriate item of 3.6 and or 3.7.1 in this section; and
• Direct investments in property trusts (both listed and unlisted). Investments in listed property trusts are to be reported in item 3.2, and investments in unlisted private property unit trusts are to be reported in item 3.3 and unlisted public offer/retail property unit trusts are to be reported in item 3.7.5.

The superannuation entity’s total direct property investment value is to be classified into the following categories:

3.5.1. Which is not completed

Report the net market value of direct holdings of property that represents property under development or construction, or where the value recognised is contingent on development being approved or completed.

3.5.2. Which is completed

Report the net market value of direct property investments that are completed (i.e. all direct property investments not reported under item 3.5.1).

Guidance for items 3.6 and 3.7:

Investments not directly held by the superannuation entity

Investments of the superannuation entity that are held with external investment managers are to be reported in items 3.6 or 3.7.

Items 3.1 to 3.5 relate to 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.

It is APRA’s intention that the following definitions be applied for items 3.6 and 3.7

• Australian Investment Managers – These are managers who are resident in Australia (i.e. the party with whom the trustee has signed the investment contract is Australia-based, regardless of whether the investment manager has an overseas parent).

• Overseas Investment Managers – If the investment manager does not have an
  Australian operation, then the manager is considered to be an overseas manager (i.e. the party with whom the trustee has signed the investment contract is not resident in Australia).

3.6. Funds placed with overseas investment managers

Report the total amount of funds placed with overseas investment managers.

Exclude:

• Amounts self-invested overseas which should be reported under items 3.1 to 3.5 as appropriate; and

• Amounts placed with Australian investment managers for investment overseas (item 3.7).

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

Include:

• Amounts managed by the investment management operations of life companies; and
• Amounts placed with Australian investment managers for investment overseas.

Exclude:

• Investments in listed unit trusts and unlisted private trusts which would be reported under items 3.2 and 3.3 above.

3.7.1. Individually managed mandates/portfolios

This represents amounts placed with external individually managed mandates or portfolios where the asset portfolio is tailored for or chosen by the superannuation entity.

3.7.2. Pooled super trusts

Exclude unitised investments with life companies where the original or primary investment is an insurance or investment policy (item 3.7.4).

3.7.3. 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 product disclosure statement. Report the net market value of investments in wholesale trusts, other than PSTs (item 3.7.2), listed unit trusts (item 3.2) or unlisted retail/public offer trusts (item 3.7.5).

3.7.4. 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 at this item:

• The 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. If net market value is not available or appropriate (e.g. traditional whole of life policies) use surrender value.
• The net market value of policies in respect of death, total, permanent or temporary disablement.

3.7.5. Unlisted retail/public offer unit trusts

Includes (but is not limited to): Investments in unlisted retail/public offer cash management unit trusts.

Important!

SRF 110.1A Selected Disclosure of Investments: Total Net Market Value column reported in SRF 110.0 Statement of Financial Position for item 3.7.5 ‘Unlisted retail/public offer unit trusts’ should agree with total of SRF 110.1A Selected Disclosure of Investments, PART C, item 5 ‘Total’, column ‘Net market value at the end of the reporting period‘.

OR

SRF 110.1B Selected Disclosure of Investments: Total of SRF 110.1B Selected Disclosure of Investments, PART C, item 5 ‘Total’, column ‘Net market value at the end of the reporting period’ should agree with item 3.7.5. ‘Investments in unlisted retail/public offer unit trusts’ in SRF 110.0 Statement of Financial Position

3.8. Leased assets

A finance lease over an asset is “a lease under which the lessor effectively transfers to the lessee substantially all the risks and benefits incident to ownership of the leased asset and where legal ownership may eventually be transferred”.

Report the value of assets that are subject to lease arrangements (i.e. finance leases) where the superannuation entity is required by current Australian Accounting Standards, to recognise and report assets that are subject to lease arrangements.

3.9. Other investments

Disclose the total net market value of all other investments not separately reported above in items 3.1 to 3.8.

3.10. Total investments

Represents the sum of all investments reported in items 3.1 to 3.9.

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 SRS 100.0 Statement of Financial Performance item 11.3.

4. Deferred tax assets

Deferred tax assets means the amounts of income taxes recoverable in future reporting periods in respect of:

(a) deductible temporary differences; and

(b) the carry forward of unused tax losses

determined in accordance with current Australian Accounting Standards.

For the purposes of quarterly reporting APRA is not mandating the superannuation entity to calculate the tax assets and liabilities every quarter, this will only be mandated for the annual reporting requirements. However superannuation entities should be considering the application and materiality of these obligations in determining the value of the superannuation entity and of member benefits, particularly for member rollovers and transfers during the period. Report the most recently calculated figure per the superannuation entity’s ledger at this item.

Important!

Current tax assets are reported as part of item 8 below.

Important!

No adjustments should be made to the tax account balances on the Statement of Financial Position when separating contributions tax from income tax expense. The only adjustments in relation to contributions tax which should be made are to SRS 100.0 Statement of Financial Performance item 20 ‘Tax expense on net operating performance’

5. Total assets

Represents the sum of the following:

1.0. Securities purchased under agreements to resell;

2.9. Total receivables;

3.10. Total investments (per ‘Total Net Market Value’ column); and

4.0. Deferred tax assets.

Liabilities

6. Direct holdings of derivative financial instruments

Report the net market value of derivatives exposure of the superannuation entity that is reported in SRF 110.2 Derivative Financial Instruments item 3, where the net market value of the exposure represents a net loss to the superannuation entity.

This only relates to derivative financial instruments that are directly held by the superannuation entity (i.e. transacted as part of internal investment management.

Exclude

The aggregate net market value of derivatives held by the superannuation entity where this represents a net gain to the superannuation entity. This is to be reported under ‘Assets’ in item 3.4 ‘Derivative financial instruments’.

7. Borrowings

Amounts to be reported in the item include but are not limited to the following:

• Securities sold under agreements to repurchase (item 7.1).
• Drawn down balance of overdraft facilities, standby lines or other forms of off- balance sheet funding (item 7.2); and
• Short-term loans or borrowings (item 7.2).

7.1. Securities sold under agreements to repurchase

This refers to the situation where the superannuation entity lends securities to another party in exchange for cash. The superannuation entity agrees to repay the cash (plus interest) to the other party in the future in exchange for the return of the securities. Where the transferee of the securities effectively receives a lenders rate of return (i.e. the underlying risks and rewards of ownership of the underlying securities effectively remain with the superannuation entity as transferor), these transactions are to be accounted for as collateralised borrowing activities (on-balance sheet exposures).

Under this method of accounting, the following treatment is to be applied:

• The liability account termed “Securities sold under agreements to repurchase”, represents the payable due to counterparties to whom the securities have been transferred (lent) and from whom cash has been received.
• The superannuation entity’s securities investment recorded on the statement of financial position is not decreased by the securities subject to this agreement.

Securities purchased under agreements to resell should be recorded under item 1 above.

7.2. Total other borrowings (provide details in Table 2 below)

Report the value of other forms of borrowings that do not fall into item 7.1. Provide a brief description of each item reported in this point. Includes (but is not limited to): Drawn down balance of overdraft facilities, standby lines or other forms of off- balance sheet funding, short term loans or other borrowings.

7.3. Total borrowings

Represents the sum of items 7.1 and 7.2.

7.3.1. Secured against assets of the superannuation entity

Report the value of the portion of borrowings which are secured against assets of the superannuation entity. The value in this field will already form part of the total in item 7.3.

Important!

SRF 110.0 Statement of Financial Position item 7.3 should be greater than SRF 110.0 Statement of Financial Position item 7.3.1 ‘Secured against assets of the superannuation entity’. If item 7.3.1 is greater than item 7.3, then this indicates an error in the completion of the form and a validation error will occur.

8. Current tax liabilities

Show the net of current tax assets (report as a negative) and current tax liabilities determined in accordance with current Australian Accounting Standards and other mandatory professional reporting requirements.

• Current tax asset means the amount of current tax recoverable as at the reporting date.
• Current tax liability means the amount of current tax payable as at the reporting date.

Important!

For the purposes of quarterly reporting APRA is not mandating the superannuation entity to calculate the tax assets and liabilities every quarter, this will only be mandated for the annual reporting requirements. However superannuation entities should be considering the application and materiality of these obligations in determining the value of the superannuation entity and of member benefits, particularly for member rollovers and transfers during the period. Report the most recently calculated figure per the superannuation entity’s ledger at this item.

Important!

Note that no adjustments should be made to the tax account balances on the Statement of Financial Position when separating contributions tax from income tax expense. The only adjustments in relation to contributions tax which should be made are to SRS 100.0 Statement of Financial Performance item 20 ‘Tax expense on net operating performance’.

9. Deferred tax liabilities

Deferred tax liabilities means the amounts of income taxes to be settled in future reporting periods in respect of assessable temporary differences, determined in accordance with current Australian Accounting Standards and other mandatory professional reporting requirements.

Important!

For the purposes of quarterly reporting APRA is not mandating the superannuation entity to calculate the tax assets and liabilities every quarter, this will only be mandated for the annual reporting requirements. However superannuation entities should be considering the application and materiality of these obligations in determining the value of the superannuation entity and of member benefits, particularly for member rollovers and transfers during the period. Report the most recently calculated figure per the superannuation entity’s ledger at this item.

10. Total payables and creditors

Report the total value of all other payables of the superannuation entity as at the end of the reporting period that are not separately reported in items 6 to 9. Includes (but is not limited to):

• Benefits payable - The benefits payable value disclosed should be the benefits payable at quarter end (year to date) to members exited during the year to date. It should not be reported as the accrued benefit liabilities of all members;
• trade creditors and accruals (for example, insurance premiums, administration fees or GST payable);
• payables relating to unsettled purchases (executed purchases of investments where the monies have not yet been paid);
• unallocated contributions; and
• amounts payable to the ATO for GST or superannuation surcharge.

11. Total liabilities

Represents the sum of the following:

6.0 Direct holdings of derivative financial instruments;

7.3 Total borrowings;

8.0 Current tax liabilities;

9.0 Deferred tax liabilities; and

10.0 Total Payables and Creditors.

12. Net assets available to pay benefits

Represents SRF 110.0 Statement of Financial Position item 5 ‘Total Assets’ less SRF 110.0 Statement of Financial Position item 11 ‘Total Liabilities’.

Important!

The total at item 12 must equal the total at item 16 ‘Total’.

Important!

If SRF 110.0 Statement of Financial Position item 12 is either $nil or a negative figure, then it is APRA’s expectation that the superannuation entity should have wound up. The wind-up of the superannuation entity should be disclosed in SRF 250.0 Superannuation Entity Profile item 4. In some cases, a superannuation entity providing risk only benefits may have zero assets.

Net assets available to pay benefits is represented by

13. Liability for accrued benefits

Report the value of members’ accrued benefits as at the reporting date. This is to be determined in accordance with the requirements of current Australian Accounting Standards.

Accumulation/defined contribution superannuation entities

The liability for accrued benefits for a defined contribution superannuation entity is the superannuation entity’s present obligation to pay benefits to members and beneficiaries in the future and is calculated as the difference between the carrying amounts of the assets and the carrying amounts of the liabilities as at the reporting date.

Defined benefit superannuation entities

Accrued benefits of a defined benefit superannuation entity shall be measured, using actuarial assumptions and valuations where appropriate, as the present value of expected future payments to members arising from membership of the superannuation entity up to the measurement date

A formal actuarial review for defined benefit superannuation entities is completed at least every three years under SIS Regulation 9.29. APRA is not advocating that the superannuation entity must complete these on a more frequent basis than is required under the Superannuation Industry (Supervision) Act 1993.

Accordingly, for quarterly and/or annual financial periods in between the formal actuarial valuations, this amount should be reported as the difference between the carrying amounts of the assets and the carrying amounts of the liabilities as at the reporting date i.e. the figure reported in item 12 ‘Net assets available to pay benefits’. In this event, a $Nil figure should be entered at both item 14 ‘Reserves’ and item 15 ‘Excess/deficiency of assets’.

14. Reserves

Report the balance of all reserves as at the end of the reporting period. This relates to unallocated reserves of the superannuation entity (i.e. income that has not been specifically allocated against member accounts). Reserves can be used for such things as smoothing investment earnings, topping up member benefits, offsetting fees.

Defined contribution

Amounts in defined contribution/accumulation superannuation entities that are unallocated to members but do not form part of a formal reserve should also be reported at this item. This includes, for example, unallocated balances which are held overnight in a bank account while the member paperwork is being processed.

Defined benefit

• Amounts in defined benefit superannuation entities that are unallocated to members but do not form part of a formal reserve will be included at SRF 110.0 Statement of Financial Position item 15.0 ‘Excess/deficiency of assets’.
• For defined benefit entities, where a formal actuarial valuation has not been conducted as at the year end reporting date, a $Nil balance should be entered at this item.

Note that if all investment earnings and entity expenses are put through reserves and the members receive earnings and pay fees and contributions tax, these should not be netted together to reflect net movement to or from reserves. Instead they should be reported in line with the entity’s accounting practices with details of movements in reserves during the reporting period.

15. Excess/deficiency of assets

This item relates to defined benefit superannuation entities. The excess/deficiency of assets available for use for a defined benefit superannuation entity will be determined by an actuary when a formal valuation is conducted. Accordingly for a defined benefit superannuation entity, only complete this item where this is applicable and is determined by an actuarial review. Where a formal actuarial valuation has not been conducted as at the quarterly reporting date, a $Nil balance should be entered at this item.

For item 15, record an excess as a positive number and a deficiency as a negative number.

16. Total

Consists of the sum of:

13.0. ‘Liability for accrued benefits’;

14.0. ‘Reserves; and

15.0. ‘Excess/deficiency of assets ’.

Important!

The total at item 16 must equal the total at item 12.

Assets

Assets are to be measured at net market value.

1. Securities purchased under agreements to resell

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 interest). Where the transferee of the securities effectively receives a lender’s rate of return (i.e. the underlying risks and rewards of ownership of the underlying securities effectively remain with the counterparty as transferor), these transactions are to be accounted for as collateralised lending activities (on-balance sheet exposures).

Under this method of accounting, the following treatment is to be applied:

• The asset account termed “Securities purchased under agreements to resell”, represents the receivable due from counterparties from whom the securities have been borrowed and with whom cash has been lodged.
• The superannuation entity’s securities investments recorded on the statement of financial position are not increased by the securities subject to this agreement.

Securities sold under agreements to repurchase should be recorded under item 7.1 below.

2. Receivables

2.1. Total investment income receivable

Report the total of all investment income that is receivable by the superannuation entity. Includes (but is not limited to): Interest, dividends, unit trust distributions, and rental income that is accrued but not yet received. Do not include receivables relating to sales of investments or outstanding fees which are reported in item 2.8 ‘Other receivables’.

2.2. Provision for doubtful debts

Record the amount of any provision for doubtful debts that relates to the receivables recorded in item 2.1 above.

Doubtful debt means it is no longer considered probable that amounts of accrued investment income (e.g. interest, dividends, distributions associated with the investment/asset) will be able to be collected by the superannuation entity.

2.3. Total investment income receivable net of doubtful debts

Represents item 2.1 less item 2.2.

2.4. Member contributions receivable

Include contributions from members which are receivable in respect of the reporting period (i.e. due but not received) by the superannuation entity, where known by the superannuation entity. For further guidance as to what is included in ‘member’ contributions refer to the instructions for SRF 100.0 Statement of Financial Performance, in particular item 1.2 of that form.

2.5. Employer contributions receivable

Include contributions from employers which are receivable in respect of the reporting period (i.e. due but not received) by the superannuation entity, where known by the superannuation entity. For further guidance as to what is included in ‘employer’ contributions refer to the instructions for SRF 100.0 Statement of Financial Performance, in particular item 1.1 of that form. Superannuation entities for public sector employees please read item 2.6 below before completing this item.

2.6. Contributions receivable from the Government

Record amounts receivable from Commonwealth and State Governments in respect of recognised unfunded liabilities to superannuation entities for public sector employees. Contributions receivable from the government in respect of the reporting period, where these related to a fully funded superannuation entity for public sector employees, should be included under item 2.5 above.

2.7. Insurance proceeds receivable

Report proceeds receivable on insurance claims that have been made/accepted by the insurer during the year to date, but are not yet received from the insurer as at the end of the reporting period. Amounts should only be reported here when they are recognised for accounting purposes under current Australian Accounting Standards.

If a superannuation entity has insurance proceeds receivable under item 2.7, it should also report insurance proceeds income and/or insurance premiums expense in SRS 100.0 Statement of Financial Performance item 6.3 ‘Total proceeds on insurance policies’ and SRS 100.0 Statement of Financial Performance item 7 ‘Members death and/or disability insurance premiums expense’ respectively.

2.8. Other receivables & Other assets (provide details in Table 1 below)

Report in Table 1 details, including a description and amount, for any other receivables of the superannuation entity not specifically reported in the items listed above in the form. Includes (but is not limited to):

• Prepayments;
• other assets not held for investment purposes (e.g. fixed assets);
• receivables relating to sales of investments where the monies have not yet been received;
• outstanding fees; and
• refundable GST.

2.9. Total receivables

This represents the sum of items 2.3 to 2.8.

3. Investments

Net market value

• In the “Total Net Market Value” column for items 3.1 to 3.9, report the net market value of local investments in Australian Dollars, and of investments in foreign currencies converted into Australian Dollars.
• In the “Net Market Value in Australia” column for items 3.1 to 3.9, report the net market value of investments whose source currency is Australian Dollars (i.e. the investment does not have exposure to foreign currency gains/losses in converting the value into Australian currency).

Both of the above columns should be completed as appropriate.

Items 3.1 to 3.5 relate to investments that are directly held by the superannuation entity as part of the internal investment management of the superannuation entity and do not include underlying assets/investments that are held with external investment managers. Investments of the superannuation entity that are held with external investment managers are to be reported in items 3.6 or 3.7. Where the superannuation entity’s investments are held by a custodian on behalf of the entity, the investments held by the custodian are treated as the investments of the superannuation entity and should be classified as direct or indirect investments according to the criteria above.

Investments directly held by the superannuation entity

Items 3.1 to 3.5 relate to 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.

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.

Investments of the superannuation entity that are held with external investment managers are to be reported in items 12.6 or 12.7.

3.1. Deposits, placements, loans and debt securities

Depending on which Version of SRF 110.1 Selected Disclosure of Investments is applicable:

• Total should agree to SRF 110.1 Selected Disclosure of Investments Version A: ‘’ PART A item 3 ‘Total deposits, placements, loans and securities’ or
• Total should agree to SRF 110.1 Selected Disclosure of Investments Version B: “PART A item 4 ‘Total deposits, placements, loans and securities’

Exclude

• Investment in unlisted retail/public offer cash management unit trusts. These are to be reported under item 3.7.5; and
• Interest-rate related derivative financial instruments. These are to be reported separately under item 3.4 (where the exposure represents a net gain to the superannuation entity) or in item 6 (where the exposure represents a net loss).

Important!

SRF 110.1A Selected Disclosure of Investments: Total Net Market Value column reported in SRF 110.0 Statement of Financial Position item 3.1 should agree with the Total ‘Net Market Value’ column of SRF 110.1A Selected Disclosure of Investments, PART A, item 3 Total deposits, placements, loans and debt securities.

OR

SRF 110.1B Selected Disclosure of Investments: Total of SRF 110.1B Selected Disclosure of Investments, PART A, item 4 Total deposits, placements, loans and securities should agree with ‘Total net market value’ reported in SRF 110.0 Statement of Financial Position in item 3.1. ‘Deposits, placements, loans and debt securities’.

3.1.1. Deposits

Report cash and deposits with organisations issued with an Australian Banking Authority and amounts placed with short term and other money market corporations, permanent building societies etc.

3.1.2. Placements, loans and debt securities

Report the net market value of these investments including (but not limited to):

• placements, loans with, and debt securities issued by Individuals, Unlisted private incorporated entities, and Unlisted private unincorporated entities (including unlisted private trusts);
• other placements, loans and debt securities;
• Short term debt securities (e.g. bills of exchange ,certificates of deposit, commercial paper, promissory notes); and
• Long term debt securities (e.g. Treasury Bonds, securitised instruments).

Exclude

Deposits issued by Authorised Deposit Taking Institutions. These should be included at item 3.1.1.

3.2. Direct holdings of equity securities of listed corporations and units in listed unit trusts

Report the net market value of the superannuation entity’s direct holdings of equity securities (i.e. shares) of listed corporations and units in listed unit trusts on all exchanges.

Exclude

• Investment in unlisted retail/public offer cash management unit trusts. These are to be reported under item 3.7.5;
• Equity related derivative contracts. These are to be disclosed separately under the item 3.4 or item 6 “Derivative financial instruments”; and
• Investments in PSTs. These are disclosed separately under item 3.7.2 ‘Pooled super trusts’.

Important!

Total of SRF 110.1B Selected Disclosure of Investments, PART B, item 6 ‘Total direct equity investments that are listed on the ASX’, column ‘Net market value at the end of the reporting period’ should agree with ’Net Market Value in Australia’ column for item 3.2 ‘Direct holdings of equity securities of listed corporations and units in listed unit trusts’ in SRF 110.0 Statement of Financial Position.

3.3. Direct holdings of equity securities of unlisted corporations, units in unlisted private trusts and interests in ventures

Report the net market value of the superannuation entity’s investment in equity securities (e.g. shares) of unlisted corporations, units in unlisted private unit trusts and venture operations. Total should agree to SRF 110.1 Selected Disclosure of Investments either

• SRF 110.1 Selected Disclosure of Investments version A: Total of PART B and PART D (refer below); or

• SRF 110.1 Selected Disclosure of Investments version B: Total of PART C, PART D and PART E (refer below)

Exclude

• Investments in PSTs. These are disclosed separately under item 3.7.2 ‘Pooled super trusts’.

Important!

SRF 110.1A Selected Disclosure of Investments: ‘Total Net Market Value’ column reported in SRF 110.0 Statement of Financial Position for item 3.3 ‘Direct holdings of equity securities of unlisted corporations, units in unlisted private trusts and interests in ventures’.

should agree with

The sum of the total of SRF 110.1A Selected Disclosure of Investments, PART B, column 6 PLUS SRF 110.1A Selected Disclosure of Investments, PART D, column 5

OR

SRF 110.1B Selected Disclosure of Investments: The sum of SRF 110.1B Selected Disclosure of Investments, PART D, Section 1, item 1.4 PLUS SRF 110.1B Selected Disclosure of Investments PART D, Section 2 (Table 3) ‘Total’ PLUS SRF 110.1B Selected Disclosure of Investments, PART E ‘Total’

should agree to

SRF 110.0 Statement of Financial Position item 3.3 ‘Direct holdings of equity securities of unlisted corporations, units in unlisted private trusts and interests in ventures.

3.4. Direct holdings of derivative financial instruments

Report the net market value of derivatives exposure of the superannuation entity that is reported in SRF 110.2 Derivative Financial Instruments item 3, where the net market value of the exposure represents a net gain to the superannuation entity. This only relates to derivative financial instruments that are directly held and managed by the superannuation entity (i.e. transacted as part of internal investment management).

Exclude

• The aggregate net market value of derivatives held by the superannuation entity where this represents a net loss to the superannuation entity. This is to be reported under ‘Liabilities’ in item 6 ‘Direct holdings of derivative financial instruments’; and
• Derivative investments held through an external individually managed mandate/portfolio or discretely managed portfolio (i.e. for this item, the superannuation entity is not required to look through the portfolio to the underlying investments to ascertain the derivatives exposure). Derivatives in externally individually managed mandates should be shown in SRF 110.0 Statement of Financial Position item 3.9 ‘Other investments’.

3.5. Direct holdings of property

Report the total of the superannuation entity’s direct holdings of property investments. For prudential reporting purposes a property investment exists where the investment (earnings and capital value) are dependent on the cash flows generated by the property through sale or rental income. APRA does not require property holdings to be valued quarterly; the value at last valuation date is acceptable for quarterly reporting.

Include:

Property investments acquired as part of the internal investment management of the superannuation entity.

Exclude:

• Underlying property investments held in the form of an external individually managed mandate/portfolio or discretely managed portfolio. The value of these investments is to be reported in the appropriate item of 3.6 and or 3.7.1 in this section; and
• Direct investments in property trusts (both listed and unlisted). Investments in listed property trusts are to be reported in item 3.2, and investments in unlisted private property unit trusts are to be reported in item 3.3 and unlisted public offer/retail property unit trusts are to be reported in item 3.7.5.

The superannuation entity’s total direct property investment value is to be classified into the following categories:

3.5.1. Which is not completed

Report the net market value of direct holdings of property that represents property under development or construction, or where the value recognised is contingent on development being approved or completed.

3.5.2. Which is completed

Report the net market value of direct property investments that are completed (i.e. all direct property investments not reported under item 3.5.1).

Guidance for items 3.6 and 3.7:

Investments not directly held by the superannuation entity

Investments of the superannuation entity that are held with external investment managers are to be reported in items 3.6 or 3.7.

Items 3.1 to 3.5 relate to 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.

It is APRA’s intention that the following definitions be applied for items 3.6 and 3.7

• Australian Investment Managers – These are managers who are resident in Australia (i.e. the party with whom the trustee has signed the investment contract is Australia-based, regardless of whether the investment manager has an overseas parent).

• Overseas Investment Managers – If the investment manager does not have an
  Australian operation, then the manager is considered to be an overseas manager (i.e. the party with whom the trustee has signed the investment contract is not resident in Australia).

3.6. Funds placed with overseas investment managers

Report the total amount of funds placed with overseas investment managers.

Exclude:

• Amounts self-invested overseas which should be reported under items 3.1 to 3.5 as appropriate; and

• Amounts placed with Australian investment managers for investment overseas (item 3.7).

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

Include:

• Amounts managed by the investment management operations of life companies; and
• Amounts placed with Australian investment managers for investment overseas.

Exclude:

• Investments in listed unit trusts and unlisted private trusts which would be reported under items 3.2 and 3.3 above.

3.7.1. Individually managed mandates/portfolios

This represents amounts placed with external individually managed mandates or portfolios where the asset portfolio is tailored for or chosen by the superannuation entity.

3.7.2. Pooled super trusts

Exclude unitised investments with life companies where the original or primary investment is an insurance or investment policy (item 3.7.4).

3.7.3. 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 product disclosure statement. Report the net market value of investments in wholesale trusts, other than PSTs (item 3.7.2), listed unit trusts (item 3.2) or unlisted retail/public offer trusts (item 3.7.5).

3.7.4. 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 at this item:

• The 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. If net market value is not available or appropriate (e.g. traditional whole of life policies) use surrender value.
• The net market value of policies in respect of death, total, permanent or temporary disablement.

3.7.5. Unlisted retail/public offer unit trusts

Includes (but is not limited to): Investments in unlisted retail/public offer cash management unit trusts.

Important!

SRF 110.1A Selected Disclosure of Investments: Total Net Market Value column reported in SRF 110.0 Statement of Financial Position for item 3.7.5 ‘Unlisted retail/public offer unit trusts’ should agree with total of SRF 110.1A Selected Disclosure of Investments, PART C, item 5 ‘Total’, column ‘Net market value at the end of the reporting period‘.

OR

SRF 110.1B Selected Disclosure of Investments: Total of SRF 110.1B Selected Disclosure of Investments, PART C, item 5 ‘Total’, column ‘Net market value at the end of the reporting period’ should agree with item 3.7.5. ‘Investments in unlisted retail/public offer unit trusts’ in SRF 110.0 Statement of Financial Position

3.8. Leased assets

A finance lease over an asset is “a lease under which the lessor effectively transfers to the lessee substantially all the risks and benefits incident to ownership of the leased asset and where legal ownership may eventually be transferred”.

Report the value of assets that are subject to lease arrangements (i.e. finance leases) where the superannuation entity is required by current Australian Accounting Standards, to recognise and report assets that are subject to lease arrangements.

3.9. Other investments

Disclose the total net market value of all other investments not separately reported above in items 3.1 to 3.8.

3.10. Total investments

Represents the sum of all investments reported in items 3.1 to 3.9.

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 SRS 100.0 Statement of Financial Performance item 11.3.

4. Deferred tax assets

Deferred tax assets means the amounts of income taxes recoverable in future reporting periods in respect of:

(a) deductible temporary differences; and

(b) the carry forward of unused tax losses

determined in accordance with current Australian Accounting Standards.

For the purposes of quarterly reporting APRA is not mandating the superannuation entity to calculate the tax assets and liabilities every quarter, this will only be mandated for the annual reporting requirements. However superannuation entities should be considering the application and materiality of these obligations in determining the value of the superannuation entity and of member benefits, particularly for member rollovers and transfers during the period. Report the most recently calculated figure per the superannuation entity’s ledger at this item.

Important!

Current tax assets are reported as part of item 8 below.

Important!

No adjustments should be made to the tax account balances on the Statement of Financial Position when separating contributions tax from income tax expense. The only adjustments in relation to contributions tax which should be made are to SRS 100.0 Statement of Financial Performance item 20 ‘Tax expense on net operating performance’

5. Total assets

Represents the sum of the following:

1.0. Securities purchased under agreements to resell;

2.9. Total receivables;

3.10. Total investments (per ‘Total Net Market Value’ column); and

4.0. Deferred tax assets.

Liabilities

6. Direct holdings of derivative financial instruments

Report the net market value of derivatives exposure of the superannuation entity that is reported in SRF 110.2 Derivative Financial Instruments item 3, where the net market value of the exposure represents a net loss to the superannuation entity.

This only relates to derivative financial instruments that are directly held by the superannuation entity (i.e. transacted as part of internal investment management.

Exclude

The aggregate net market value of derivatives held by the superannuation entity where this represents a net gain to the superannuation entity. This is to be reported under ‘Assets’ in item 3.4 ‘Derivative financial instruments’.

7. Borrowings

Amounts to be reported in the item include but are not limited to the following:

• Securities sold under agreements to repurchase (item 7.1).
• Drawn down balance of overdraft facilities, standby lines or other forms of off- balance sheet funding (item 7.2); and
• Short-term loans or borrowings (item 7.2).

7.1. Securities sold under agreements to repurchase

This refers to the situation where the superannuation entity lends securities to another party in exchange for cash. The superannuation entity agrees to repay the cash (plus interest) to the other party in the future in exchange for the return of the securities. Where the transferee of the securities effectively receives a lenders rate of return (i.e. the underlying risks and rewards of ownership of the underlying securities effectively remain with the superannuation entity as transferor), these transactions are to be accounted for as collateralised borrowing activities (on-balance sheet exposures).

Under this method of accounting, the following treatment is to be applied:

• The liability account termed “Securities sold under agreements to repurchase”, represents the payable due to counterparties to whom the securities have been transferred (lent) and from whom cash has been received.
• The superannuation entity’s securities investment recorded on the statement of financial position is not decreased by the securities subject to this agreement.

Securities purchased under agreements to resell should be recorded under item 1 above.

7.2. Total other borrowings (provide details in Table 2 below)

Report the value of other forms of borrowings that do not fall into item 7.1. Provide a brief description of each item reported in this point. Includes (but is not limited to): Drawn down balance of overdraft facilities, standby lines or other forms of off- balance sheet funding, short term loans or other borrowings.

7.3. Total borrowings

Represents the sum of items 7.1 and 7.2.

7.3.1. Secured against assets of the superannuation entity

Report the value of the portion of borrowings which are secured against assets of the superannuation entity. The value in this field will already form part of the total in item 7.3.

Important!

SRF 110.0 Statement of Financial Position item 7.3 should be greater than SRF 110.0 Statement of Financial Position item 7.3.1 ‘Secured against assets of the superannuation entity’. If item 7.3.1 is greater than item 7.3, then this indicates an error in the completion of the form and a validation error will occur.

8. Current tax liabilities

Show the net of current tax assets (report as a negative) and current tax liabilities determined in accordance with current Australian Accounting Standards and other mandatory professional reporting requirements.

• Current tax asset means the amount of current tax recoverable as at the reporting date.
• Current tax liability means the amount of current tax payable as at the reporting date.

Important!

For the purposes of quarterly reporting APRA is not mandating the superannuation entity to calculate the tax assets and liabilities every quarter, this will only be mandated for the annual reporting requirements. However superannuation entities should be considering the application and materiality of these obligations in determining the value of the superannuation entity and of member benefits, particularly for member rollovers and transfers during the period. Report the most recently calculated figure per the superannuation entity’s ledger at this item.

Important!

Note that no adjustments should be made to the tax account balances on the Statement of Financial Position when separating contributions tax from income tax expense. The only adjustments in relation to contributions tax which should be made are to SRS 100.0 Statement of Financial Performance item 20 ‘Tax expense on net operating performance’.

9. Deferred tax liabilities

Deferred tax liabilities means the amounts of income taxes to be settled in future reporting periods in respect of assessable temporary differences, determined in accordance with current Australian Accounting Standards and other mandatory professional reporting requirements.

Important!

For the purposes of quarterly reporting APRA is not mandating the superannuation entity to calculate the tax assets and liabilities every quarter, this will only be mandated for the annual reporting requirements. However superannuation entities should be considering the application and materiality of these obligations in determining the value of the superannuation entity and of member benefits, particularly for member rollovers and transfers during the period. Report the most recently calculated figure per the superannuation entity’s ledger at this item.

10. Total payables and creditors

Report the total value of all other payables of the superannuation entity as at the end of the reporting period that are not separately reported in items 6 to 9. Includes (but is not limited to):

• Benefits payable - The benefits payable value disclosed should be the benefits payable at quarter end (year to date) to members exited during the year to date. It should not be reported as the accrued benefit liabilities of all members;
• trade creditors and accruals (for example, insurance premiums, administration fees or GST payable);
• payables relating to unsettled purchases (executed purchases of investments where the monies have not yet been paid);
• unallocated contributions; and
• amounts payable to the ATO for GST or superannuation surcharge.

11. Total liabilities

Represents the sum of the following:

6.0 Direct holdings of derivative financial instruments;

7.3 Total borrowings;

8.0 Current tax liabilities;

9.0 Deferred tax liabilities; and

10.0 Total Payables and Creditors.

12. Net assets available to pay benefits

Represents SRF 110.0 Statement of Financial Position item 5 ‘Total Assets’ less SRF 110.0 Statement of Financial Position item 11 ‘Total Liabilities’.

Important!

The total at item 12 must equal the total at item 16 ‘Total’.

Important!

If SRF 110.0 Statement of Financial Position item 12 is either $nil or a negative figure, then it is APRA’s expectation that the superannuation entity should have wound up. The wind-up of the superannuation entity should be disclosed in SRF 250.0 Superannuation Entity Profile item 4. In some cases, a superannuation entity providing risk only benefits may have zero assets.

Net assets available to pay benefits is represented by

13. Liability for accrued benefits

Report the value of members’ accrued benefits as at the reporting date. This is to be determined in accordance with the requirements of current Australian Accounting Standards.

Accumulation/defined contribution superannuation entities

The liability for accrued benefits for a defined contribution superannuation entity is the superannuation entity’s present obligation to pay benefits to members and beneficiaries in the future and is calculated as the difference between the carrying amounts of the assets and the carrying amounts of the liabilities as at the reporting date.

Defined benefit superannuation entities

Accrued benefits of a defined benefit superannuation entity shall be measured, using actuarial assumptions and valuations where appropriate, as the present value of expected future payments to members arising from membership of the superannuation entity up to the measurement date

A formal actuarial review for defined benefit superannuation entities is completed at least every three years under SIS Regulation 9.29. APRA is not advocating that the superannuation entity must complete these on a more frequent basis than is required under the Superannuation Industry (Supervision) Act 1993.

Accordingly, for quarterly and/or annual financial periods in between the formal actuarial valuations, this amount should be reported as the difference between the carrying amounts of the assets and the carrying amounts of the liabilities as at the reporting date i.e. the figure reported in item 12 ‘Net assets available to pay benefits’. In this event, a $Nil figure should be entered at both item 14 ‘Reserves’ and item 15 ‘Excess/deficiency of assets’.

14. Reserves

Report the balance of all reserves as at the end of the reporting period. This relates to unallocated reserves of the superannuation entity (i.e. income that has not been specifically allocated against member accounts). Reserves can be used for such things as smoothing investment earnings, topping up member benefits, offsetting fees.

Defined contribution

Amounts in defined contribution/accumulation superannuation entities that are unallocated to members but do not form part of a formal reserve should also be reported at this item. This includes, for example, unallocated balances which are held overnight in a bank account while the member paperwork is being processed.

Defined benefit

• Amounts in defined benefit superannuation entities that are unallocated to members but do not form part of a formal reserve will be included at SRF 110.0 Statement of Financial Position item 15.0 ‘Excess/deficiency of assets’.
• For defined benefit entities, where a formal actuarial valuation has not been conducted as at the year end reporting date, a $Nil balance should be entered at this item.

Note that if all investment earnings and entity expenses are put through reserves and the members receive earnings and pay fees and contributions tax, these should not be netted together to reflect net movement to or from reserves. Instead they should be reported in line with the entity’s accounting practices with details of movements in reserves during the reporting period.

15. Excess/deficiency of assets

This item relates to defined benefit superannuation entities. The excess/deficiency of assets available for use for a defined benefit superannuation entity will be determined by an actuary when a formal valuation is conducted. Accordingly for a defined benefit superannuation entity, only complete this item where this is applicable and is determined by an actuarial review. Where a formal actuarial valuation has not been conducted as at the quarterly reporting date, a $Nil balance should be entered at this item.

For item 15, record an excess as a positive number and a deficiency as a negative number.

16. Total

Consists of the sum of:

13.0. ‘Liability for accrued benefits’;

14.0. ‘Reserves; and

15.0. ‘Excess/deficiency of assets ’.

Important!

The total at item 16 must equal the total at item 12.