Part Quarterly Reporting Requirements and Gen - Financial Sector (Collection of Data) determination No. 48 of 2005 - Quarterly Reporting Requirements and General Instruction Guide | Zoe
Quarterly Reporting Requirements and General Instruction Guide
Entities subject to quarterly reporting
Trustees of superannuation entities that are regulated by APRA, including the following entities, are required to complete the quarterly reporting requirements listed in the Reporting Requirements Table below where the total assets of the superannuation entity are equal to or exceed $50m at the end of the most recent year of income of the entity:
Public Offer Superannuation entities;
Other APRA regulated superannuation entities;
Multi-Member Approved Deposit Funds;
Pooled Superannuation Trusts; and
Eligible Rollover Funds.
Excluded
Small APRA Funds (SAFs); and
Single-member Approved Deposit Funds.
Reporting Requirements Table
Form Number
Form Name
SRF 100.0
Statement of Financial Performance
SRF 110.0
Statement of Financial Position
SRF 110.1
Selected Disclosure of Investments (Version A)
SRF 110.1
Selected Disclosure of Investments (Version B)
SRF 110.2
Derivative Financial Instruments
SRF 120.0
Exposure Concentrations
SRF 110.1 Selected Disclosure of Investments (Version A) and (Version B)
A trustee of a superannuation entity with total assets equal to or greater than $50m at the end of the entity’s most recent year of income is only required to complete one version of this form. The version of this form that will be appropriate for a superannuation entity will depend on whether a superannuation entity has total assets that qualify it to be considered within the largest 200 superannuation entities in the industry.
Where a superannuation entity has total assets that qualify it to be considered within the largest 200 superannuation entities in the industry, it is required to complete version B of this form. The ABS has indicated that it requires only these entities to be subject to the specific reporting requirements that are contained in this form.
Version A of this form is only to be completed by a trustee of a superannuation entity where the total assets of the superannuation entity are equal to or greater than $50m at the end of the entity’s last year of income but the superannuation entity is not considered to be within the largest 200 entities in the industry, in terms of total asset size. Version A of this form only includes the specific reporting requirements of the APRA.
APRA will advise those superannuation entities that are within the ‘top 200’ grouping and the reporting package will be customised (in the D2A reporting forms) so that the correct version is automatically applied to the superannuation entity.
Application of the threshold for quarterly reporting
The application of quarterly reporting is to be determined by trustees of superannuation entities at the start of the financial year. A determination at the start of the financial year regarding the application of the quarterly reporting requirements to the superannuation entity is effective for the entire financial year regardless of subsequent increases and decreases in asset size of the superannuation entity during that financial year (e.g. where the total assets of the superannuation entity subsequently decrease below the $50m in total assets threshold).
Audit requirements
Quarterly reporting requirements are not subject to audit.
Reporting period
Quarterly reporting periods are based on the year of income of the superannuation entity not a calendar year basis. Quarters are defined as four periods of three whole months each.
Important!
The financial information requested in these quarterly forms is to be reported as at the last day of the reporting period on a financial year to date basis of the superannuation entity, rather than for the individual quarter alone.
Lodgement requirements
Forms required on a quarterly basis are to be lodged within 25 business days after the end of the reporting quarter. The lodgement deadline is predominantly a requirement of the Australian Bureau of Statistics for the purposes of collating and preparing the national aggregates and statistics.
Four sets of quarterly returns are required each year.
Amendments
Where the superannuation entity makes a material adjustment to any data relating to quarter(s) for which a return has been lodged, amended quarterly returns for the quarter (and for any subsequent quarters affected by the adjustment) must be lodged with APRA within 25 business days of the adjustment being made.
Basis of preparation
In completing these forms, unless otherwise specifically stated in the instruction guide for each form:
Basis of accounting (Cash vs Accruals):
The forms should be prepared on a basis consistent with the accounting treatment (cash or accruals basis) adopted by the superannuation entity for annual financial reporting purposes. APRA would ordinarily expect that regulated superannuation entities are ‘reporting entities’, and will therefore apply an accruals basis, in accordance with the requirements of Australian Accounting Standards and the guidance in APRA Superannuation Circular No. V.A.2.
Important!
Once selected, the basis of accounting used must be consistent for all 4 quarterly returns and the corresponding annual return;
Direct vs Indirect investments:
Certain items on the forms distinguish between ‘directly held’ investments and those which are not directly held.
Directly held investments are those made by the superannuation entity in its own name, as part of the internal investment management function. This includes investments held by a custodian where these are held in Trust for the entity and the superannuation entity retains the decision-making function regarding the making and redeeming of particular investments within the portfolio.
Investments that are not directly held include underlying investments that are held with external investment managers (such as investments in PSTs or unit trusts), and investments held via individually managed mandates/portfolios where the decision-making function regarding the making and redeeming of particular investments within the portfolio may rest with the investment manager.
Disclosures regarding investments that are not directly held are not required to be made on a look-through basis.
Netting off of Amounts:
Unless otherwise specifically stated, data in the forms should be reported on a gross basis, with no netting, even where the institutions comply with the prerequisites for netting outlined in the current Australian Accounting Standards..
Scope:
The forms are to be prepared based on the total transactions of the superannuation entity regardless of the residency status of members or the location or registration of the asset or liability items;
Do not include a consolidation of any controlled entities;
Unless otherwise indicated, report all items on the form as positive numbers; and
Superannuation entities are to follow Australian Accounting Standards and other mandatory reporting requirements and other statutory requirements where possible, regarding the interpretation, recognition and measurement of items of income, expense, assets and liabilities; notably AAS 25 ‘Financial Reporting of Superannuation Plans’.
Net Market Value:
AAS 25 requires a superannuation entity to adopt net market value measurement where the superannuation entity is deemed to be a reporting entity. For the purposes of prudential reporting all superannuation entities are to adopt net market value measurement irrespective of their deemed reporting entity status.
Net market value has the same meaning as defined in the Australian accounting standard/AAS 25. A definition is provided in the ‘Glossary of Terms’. Any change in the values at which such assets are measured must be recognised as revenues (or losses) in the reporting period in which the change occurs.
Accounting Standards AAS 4 ‘Depreciation’, AAS 10 ‘Recoverable Amount of Non-Current Assets’ and AASB 1041 ‘Revaluation of Non-Current Assets’ do not apply to such investments.
Market value of charged/encumbered assets
If an asset is in any way subject to a charge, covenant, encumbrance, option to purchase or any other arrangement by way of agreement or statute, that restricts the net market value of the asset, the market value needs to reflect the existence of these arrangements. For example, if the superannuation entity has agreed to deliver an asset to a purchaser at a price below the arms length market value, the market value cannot exceed the agreed price.
Unit of measurement
The above forms are to be prepared in thousands of Australian dollars (AUD), rounded to the nearest thousand, i.e. with no decimal place. As a general rule, amounts denominated in foreign currency are to be converted to AUD in accordance with the requirements of the current Australian accounting standards regarding Foreign Currency Translation.
The general requirements for translation are:
Foreign currency monetary items outstanding at the reporting date must be translated at the spot rate at the reporting date.
Other items outstanding at the reporting date must not be re-translated subsequent to initial recognition of the transaction.
Monetary items are defined to mean money held and assets and liabilities that are to be received or paid in fixed or determinable amounts of money (e.g. claim payments, reinsurance recoveries).
Monetary items arising under foreign currency derivative contracts at the reporting date must be translated as follows:
Where the exchange rate is fixed in the contract, at that fixed exchange rate; and
Where the exchange rate varies, at the spot rate at the reporting date.
The general requirements for the accounting treatment of exchange differences arising on translation are:
Exchange differences must be recognised as either revenues or expenses in the calculation of net profit or loss, in the reporting period in which the exchange rates change.
Exchange differences that arise in respect of foreign currency monetary items which are directly attributable to the acquisition, construction or production of an asset that takes a long period of time to get ready for its intended use or sale, must be capitalised (net of any effects of a hedge) as part of the cost of that asset.
General definitions
The Glossary contains definitions of commonly used terms in the forms and instruction guides to the forms, listed in the Reporting Requirements Table.
Item
Definition
Associates
Associate is defined consistent with the definition provided by Australian accounting standard AASB 1016/AAS 14 ‘Accounting for Investments in Associates’.Associate means an investee, not being:(a) a subsidiary of the investor; or(b) a partnership of the investor; or(c) an investment acquired and held exclusively with a view to its disposal in the near future.over which the investor has significant influence.Significant influence means the capacity of an entity to affect substantially (but not control) either, or both, of the financial and operating policies of another entity.
Controlled entity/Subsidiary
Definitions of controlled entities/subsidiaries should be consistent with the requirements of the current Australian accounting standards on ‘Consolidated Financial Reports’.Accounting standards define a controlled entity/“subsidiary" as meaning an entity, which is controlled by a parent entity. A parent entity is defined as an entity, which controls another entity.Entity means any legal, administrative, or fiduciary arrangement, organisational structure or other party (including a person) having the capacity to deploy scarce resources in order to achieve objectives.Control means the capacity of an entity to dominate decision-making, directly or indirectly, in relation to the financial and operating policies of another entity so as to enable that other entity to operate with it in pursuing the objectives of the controlling entity.
Assets
Assets is to be interpreted in accordance with the Australian Accounting Standards and authoritative pronouncements and Statements of Accounting Concepts.
Liabilities
Liabilities is to be interpreted in accordance with the Australian Accounting Standards and authoritative pronouncements and Statements of Accounting Concepts.
Fair Value
Fair value means the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's-length transaction, and is determined as follows:The quoted market price in an active and liquid market (ie market value); orwhen there is infrequent activity in a market, the market is not well established, small volumes are traded relative to the asset or liability to be valued, or a quoted market price is not available – an estimate of a price for the asset or liability in an active and liquid market.For the purposes of the APRA forms, fair value should ignore transaction costs. Market value is defined for accounting purposes as a subset of fair value - refer to the definitions of market value and net market value below.
Finance Lease
A finance lease over an asset is an arrangement under which the lessoreffectively 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.
Goodwill
Current Australian accounting standards regarding ‘Accounting for Goodwill’ provide that goodwill represents the future benefits from unidentifiable assets. Only goodwill which is purchased by the entity as part of the acquisition of an asset(s) can be recognised (i.e. internally generated goodwill must not be recognised).Goodwill which is purchased by the entity, must be measured as the excess of the cost of acquisition incurred by the entity over the fair value of the identifiable net assets acquired.Purchased goodwill must be amortised so that it is recognised as an expense in the profit and loss account on a straight-line basis, over the period from the date of acquisition to the end of the period of time during which the benefits are expected to arise. This period must not exceed twenty years from the date of acquisition.
Impairment
For the purposes of the APRA forms, impairment means that it is no longer considered probable that amounts of principal (or market value) and any associated amounts of accrued income (e.g. interest, dividends, distributions associated with the investment/asset) will be able to be collected by the superannuation entity.
Investment
Investment is to be interpreted in accordance with the Australian Accounting Standards and authoritative pronouncements and Statements of Accounting Concepts.In relation to superannuation entities, this generally means an asset held by the superannuation entity for the accretion of wealth by way of revenues such as interest, royalties, dividends, rentals and capital appreciation, but does not include operating assets.
Joint ventures
Defined in accordance with current Australian accounting standards regarding ‘Interests in Joint Ventures’. Joint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control. Joint ventures can take the form of a joint venture entity or joint venture operation.Joint venture entity means a joint venture that is in the form of an entity and does not include:(a) an entity that is acquired and held exclusively with a view to its disposal in the near future(b) an entity that operates under severe long-term restrictions which impair significantly its ability to make distributions to the venturer.Joint venture operation means a joint venture that is not a joint venture entity and does not include an entity that:(a) is acquired and held exclusively with a view to its disposal in the near future(b) operates under severe long-term restrictions that impair significantly its ability to make distributions to the venturer.
Life office/Life company
A life insurance company is a company registered under the Life Insurance Act 1995. They provide insurance against death and disability and may also operate superannuation entities. Also known as life office.
Market value
Market value is defined for accounting purposes as a subset of fair value, and means the amount which could be expected to be received from the disposal of an asset in an active and liquid market.For the purposes of the forms, market value should ignore transaction costs. Refer also to the definition of net market value below.
Net market value
Net market value means the amount which could be expected to be received from the disposal of an asset in an active and liquid market (i.e. market value) after deducting costs expected to be incurred in realising the proceeds of such a disposal. Refer also to the definition of market value above.
Outside equity interest
Defined consistent with current Australian accounting standards regarding ‘Consolidated Financial Reports’ outside equity interest" means the equity in the economic entity (consolidated group), other than that which can be attributed to the ownership group of the parent entity.
Parent entity
Parent entity is defined consistent with current Australian accounting standards regarding ‘Consolidated Financial Reports’ and simply means an entity which controls another entity.
Pooled Superannuation Trust (PST)
A PST is a trust in which assets of a number of superannuation entities, approved deposit funds (ADFs) or other PSTs are invested and managed by a professional manager. The investment income of the PST is taxed at concessional rates within the PST.
Principal Value
Represents the notional or face value.
Related parties/entities
For the purposes of this form, related entities are to be interpreted consistently with the meaning as in current Australian accounting standards regarding ‘Related Party Disclosures’. It provides that related party means, in relation to a reporting entity, any:(a) other entity that at any time during the financial year, has control or significant influence over the reporting entity; or(b) other entity that at any time during the financial year, is subject to control or significant influence by the reporting entity (i.e. subsidiary or an associated entity); or(c) other entity that, at any time during the financial year, is controlled by the same entity that controls the reporting entity. Referred to as a situation in which entities are subject to common control (i.e. Joint Ventures); or(d) other entity that, at any time during the financial year, is controlled by the same entity that significantly influences the reporting entity; or(e) other entity that, at any time during the financial year, is significantly influenced by the same entity that controls the reporting entity; or(f) director of the reporting entity or any of their director-related entities; or(g) director of any other entity identified as a related party under any of paragraphs (a) to (e), or any of their director-related entities;but excludes any other entity (except those identified as a related party under paragraph (f)) where the related party relationship results solely from normal dealings of:(h) financial institutions; or(i) authorised trustee corporations; or(j) fund managers; or(k) trade unions; or(l) statutory authorities; or(m) government departments; or(n) local governmentsCurrent Australian accounting standards define director-related entities as meaning “the spouses of such directors, relatives of such directors or spouses and any other entity under the joint or several control or significant influence of such directors, spouses or relatives”.Relative in relation to a person is defined in the Corporations Act to mean the spouse, partner, son, daughter, or brother or sister of the person.
Reporting period
In relation to APRA forms:Reporting period end for all APRA forms (i.e. annual and quarterly reporting) is based on the year of income of the superannuation entity, not a calendar year.The financial information requested in the forms is to be reported as at the last day of the reporting period on a year of income to date basis of the superannuation entity.