Reporting Standard SRS 120.0 (2005)

Exposure Concentrations

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 their top 10 exposures, including concentrations in exposure to a single or related counterparty, and assets types.

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 120.0 Exposure Concentrations (Form SRF 120) 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 120.0 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) for 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 120.0, 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 120.0 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 120.0 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 their top 10 exposures, including concentrations in exposure to a single or related counterparty, and assets types.

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 120.0 Exposure Concentrations (Form SRF 120) 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 120.0 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) for 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 120.0, 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 120.0 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 120.0 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 120.0 Exposure Concentrations

This form must be completed on a quarterly basis by trustees of all APRA-regulated superannuation entities, excluding Small APRA Funds (SAFs) and Single Member Approved Deposit Funds (SMADFs), where the superannuation entity had total assets of at 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.

Trustees of those superannuation entities that are required to complete SRF 120.0 Exposure Concentrations on a quarterly basis must also complete SRF 220.0 Exposure Concentrations on an annual basis.

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

Purpose

The large exposure form is required by APRA for the provision of information on concentrations in exposure of a superannuation entity. For example to the performance of a particular investment held by a superannuation entity, or a counterparty to which the superannuation entity has an exposure/investment with (i.e. moneys invested at call).

Exposures are only required to be reported in this form where the exposure is greater than 5% of the net market value of total assets reported in SRF 110.0 Statement of Financial Position in item 5 ‘Total assets’ of the superannuation entity. If there are more than 10 such exposures, only the largest 10 are required to be reported on this form. (Note: All exposures, whether of an asset or liability nature per item 1 of this form, are to be determined with reference to 5% of total assets).

Information reported in this form is prudentially important, as it forms part of APRA’s monitoring and analysis framework for superannuation entities and the superannuation industry.

This Guide has been prepared to assist in the completion and lodgement of the SRF 120.0 Exposure Concentrations. For ease of use, the Guide has been split into three main sections as follows:

• Lodgement and Validation of SRF 120.0 Exposure Concentrations;
• General Guidance – this guidance provides principles that should be applied to all items throughout SRF 120.0 Exposure Concentrations; 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 120.0 Exposure Concentrations

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

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

Validation and calculation of totals

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

There are three types of validation rules as follows:

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

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

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

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

General guidance for completion of SRF 120.0 Exposure Concentrations

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 120.0 Exposure Concentrations. All balances must be recorded. Amounts cannot be omitted based on materiality levels. Each superannuation entity should use its own judgement in grouping items into meaningful categories (where applicable).

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 superannuation entity has a number of like investments in the same counterparty, then these should be reported in aggregate.

For example, if a superannuation entity holds a number of bank bills with the same counterparty, reporting in aggregate is acceptable, as opposed to reporting them individually.

Important!

A liability for accrued member benefits does not form part of an exposure concentration. All accrued benefits are excluded from SRF 120.0 Exposure Concentrations.

Scope

Important!

‘Look through’ is not required.

“Report exposures greater than 5% of the total assets of the superannuation entity” to

• directly held investments;

• investments that are held with external investment managers (such as investments in Pooled Superannuation Trusts or unit trusts); and

• investments held via individually managed mandates/portfolios external directly managed mandates/portfolios. This requires the reporting of the superannuation entity’s aggregate investment value held with an individual external manager (i.e. a ‘look through’ basis is not required for SRF 120.0 Exposure Concentrations).

1.7. Include

The aggregate investment value exposure of the superannuation entity to a external investment manager or Pooled Superannuation Trusts (PST), Wholesale trusts, units in retail/public offer trusts, listed or unlisted trusts, corporations, and managed investment schemes for the purposes of this analysis.

There is no need to record the exposures to the Underlying assets/investments held through the intermediary.

1.8. A large exposure represents an investment in an individual listed corporation or an individual property. It does not include a large exposure to an asset class such as domestic equities, property, or an industry sector.

1.9. Exposures include claims and commitments of the superannuation entity recorded both on and off the balance sheet that are of the following nature:

(a) Credit exposures (i.e. such as a money market placement with a Bank or holding of a corporation’s debt securities);

(b) Asset exposures that are not in the nature of a credit exposure (e.g. a direct property investment); and

(c) Exposures in the nature of a liability or obligation to a single party or group of related parties.

1.10. Off-balance sheet exposures refer to items that are not recognised in the statement of financial position of the superannuation entity, such as contingent assets and liabilities.

1.11. Where credit risk is unequivocally transferred to a third party by an irrevocable letter of credit or a direct guarantee, the exposure is to the third party.

1.12. In determining whether a group of counterparties are related, the reporting superannuation entity should treat:

• Counterparties as related where they are linked by cross guarantees, common ownership, ability to control, financial interdependency, or other connections which, in the superannuation entity’s assessment, identify the counterparties as representing a single risk; and
• All exposures underwritten by the same guarantor as a single risk.

1.7. Exposures of the reporting superannuation entity to related parties must be included.

Example of approach to aggregate exposure – single counterparty:

The following is provided as a brief example of the approach APRA expects to be adopted in calculating an exposure to a single counterparty to be determined for the purposes of this form.

A superannuation entity holds the following investments:

1. Listed equity securities of ABC Bank Limited;
2. ‘Over the Counter’ derivative financial instruments with ABC Bank Limited;
3. Funds placed or deposited with ABC Bank Limited;
4. Holding of debt securities issued by or guaranteed by ABC Bank Limited; and
5. Direct property investment in which ABC Bank Limited is a lessee of over 50% of the commercial property.

APRA expects the following exposures to be aggregated in calculating the counterparty exposure to ABC Bank Limited:

• The net market value of ‘Over the Counter’ derivative financial instruments with ABC Bank Limited where the derivative positions with ABC Bank Ltd are in a net loss position to the reporting superannuation entity (i.e. the reporting superannuation entity will be required to pay funds to ABC Bank Limited or securities to settle the derivative position);
• The value of funds placed or deposited with ABC Bank Limited; and
• The net market value of the investment in debt securities issued by or guaranteed by ABC Bank Limited.

The value of listed equity securities of ABC Bank Limited held by the superannuation entity are not included in this aggregate calculation, as APRA considers it is unreasonable to extend the exposure concentration analysis to these type of holdings, even though the market value of such an investment would be adversely effected by a downgrading in the credit rating of ABC Bank Limited.

While the value of the superannuation entity’s holding of listed equity securities of ABC Bank Limited is not required to be aggregated as outlined above with other investments in ABC Bank Limited, the value of the holdings of listed equity securities of ABC Bank Limited will need to be individually reported in this form where the value of such a holding represents one of the 10 largest exposures which are greater than 5% of the net market value of total assets of the superannuation entity.

Instruction guide for specific items

Important!

Exposure concentrations of investments should only be reported under SRF 120.0 Exposure Concentrations column 5 ‘Net market value’ if they represent greater than 5% of total assets calculated using SRF 110.0 Statement of Financial Position item 5 ‘Total assets’ i.e. each individual line item disclosed must be greater than 5% of total assets.

Important!

The total sum of SRF 120.0 Exposure Concentrations column 5 ‘Net market value’ must not exceed the total assets reported in SRF 110.0 Statement of Financial Position item 5 ‘Total assets’.

Explanation of column headings

1. Type

The type (description) of on-balance sheet exposures is determined from the following generic headings Listed in the ‘Statement of Financial Position’. Where none of the headings are applicable please provide a brief description:

(i) Securities purchased under agreement to resell

(ii) Receivables

• Total investment income receivable;
• Members contributions receivable;
• Employer contributions receivable;
• Contributions receivable from the Government;
• Insurance proceeds receivable; and
• Other receivables (provide a description).

(iii) Investments

• Deposits;

• Placements, loans and debt securities;

• Direct holdings of equity securities of listed corporations and units in listed unit trusts;

• Direct holdings of equity securities of unlisted corporations, units in unlisted private trusts and interests in ventures;

• Direct holdings of property:

• Which is not completed;

• Which is completed;

• Funds placed with overseas investment managers;

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

• Individually managed mandates/portfolios;

• Pooled Super Trusts;

• Wholesale trusts;

• Investment and/or insurance policies held in statutory fund of life companies;

• Investments in unlisted retail/public offer unit trusts;

• Leased Assets; and

• Other investments (provide a description).

(iv) Direct holdings of derivative financial instruments

(v) Borrowings

• Securities sold under agreements to repurchase; and
• Other

(vi) Total Payables and Creditors

(vii) Members benefits payable

Example reporting for column 1 and 2 (below)

2. Name

Provide the name of the entity or counterparty for each exposure listed.

3. ABN

Where the investment/exposure is to an entity, provide the Australian Business Number (ABN) of that entity. When there is no ABN for the entity in question, leave this field blank.

Completion of the ABN fields is not mandatory to lodge returns. If the ABN is not recorded in the superannuation entities’ system, or is not known, leave the ABN blank. A Warning confirmation validation rule in D2A will request confirmation that the investment entity has not applied for an ABN. Tick the box as confirmation and enter the comment that ABN is not known.

4. Externally managed

Where appropriate mark “Y” for yes or “N” for no in this column for each exposure listed. For the purposes of this form, “Externally Managed Exposure” means an asset or investment in an investment in Pooled Superannuation Trusts (PST), Wholesale trusts, units in retail/public offer trusts, listed or unlisted trusts, corporations, and managed investment schemes.

5. Net market value

Report the net market value of the holdings as at the end of the reporting period for each exposure listed (report the net fair value if there is no net market value available).

• Report exposures in descending order with the largest exposures listed first.
• For this item, report asset exposures as a positive number and liability exposures as a negative number.

6. Related party

For the purposes of this form a related party of the superannuation entity includes an exposure(s) within the following categories (drop down box). Input “Yes” where the exposure is with a related party otherwise input “No”.

A related party is defined in the current Australian Accounting Standards. For the purposes of this form:

• parties are considered to be related if one party has the ability to either control the other party or to exercise significant influence over the other party in making financial and operating decisions; and

• a related party transaction arises from a transfer of resources or obligations, including services of individuals or entities, between related parties, regardless of whether a price is charged.

The following specific guidelines should be taken into consideration:

Trustee of the reporting superannuation entity

This selection will be applicable where the exposure is between the reporting superannuation entity and the Trustee of the reporting superannuation entity.

For the purpose of this section, trustee of the reporting superannuation entity includes:

• A corporate trustee;
• A director of the corporate trustee;
• An individual acting as a trustee rather than a corporate trustee; and
• The spouse of a trustee, or a spouse of a director of the corporate trustee of the reporting superannuation entity.

Trustee or director of a group entity of the approved trustee

This selection will be applicable where the exposure between the reporting superannuation entity and directors of an entity that is part of the consolidated group economic entity of the approved trustee. This includes exposures with the following directors who are not also a trustee or a director of the corporate trustee of the reporting superannuation entity (where they are such exposures are to be recorded under point A above):

• Directors of the parent entity(s) of the approved trustee; and
• Directors of subsidiaries of the parent entity of the approved trustee.

Group entities of the consolidated group economic entity

This selection will be applicable where the exposure between the reporting superannuation entity and an entity that is part of the consolidated group economic entity to which the approved trustee belongs. This will include the following group entities:

• The parent entity(s) of the approved trustee;
• Controlled entities of the parent entity(s) of the approved trustee; and
• Joint ventures or associates of the parent entity(s) of the approved trustee

A related entity of the trustee or a of director of the corporate trustee, of the superannuation entity and that entity is not a group entity

This selection will be applicable where the exposure between the reporting superannuation entity and an entity that is related to a trustee or a director of the corporate trustee of the reporting superannuation entity, but that entity is NOT part of the consolidated group economic entity to which the approved trustee belongs.

An entity that is related to a trustee, or a director of the corporate trustee of the reporting superannuation entity is to be interpreted as including:

• The trustee, or director of the corporate trustee of the reporting superannuation entity, is a director of that entity/business; and
• The spouse of a trustee, or the spouse of a director of the corporate trustee of the reporting superannuation entity, is a director of that entity/business.

Subsidiary, associate or joint venture of the reporting superannuation entity

This selection will be applicable where the exposure between the reporting superannuation entity and any subsidiaries, associates or joint ventures of the reporting superannuation entity.

7. Rating Grade

Report in this column where applicable, the APRA rating grade of a large counterparty exposure of the superannuation entity (i.e. report ratings 1 to 6 where applicable). The table below lists the APRA rating grade and the corresponding common rating grades from rating agencies.

If a rating grade is unknown or not available use rating grade 6. Where investment managers cannot confirm their ratings a rating grade 6 should also be used.

Classification of rating grade of counterparty

The counterparty grades set out in the table below are to be used in classifying the rating grades for the purposes of this form. This table discloses the corresponding counterparty ratings of a number of rating agencies and the general classification APRA will apply to these ratings. The superannuation entity should request these rating grades directly from the counterparty (i.e. the other party with whom the transaction is being made) or investment manager, and should not rely on consumer rating agencies which rate collective investments.

<table cellspacing="0" cellpadding="0" style="width:411.85pt; border-collapse:collapse"><tbody><tr><td style="width:74pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span style="font-weight:bold">APRA Classification</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span style="font-weight:bold"></span></p></td><td style="width:74.5pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span style="font-weight:bold">Standard &amp; Poor’s</span></p></td><td colspan="2" style="width:67.85pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span style="font-weight:bold">Moody’s</span></p></td><td style="width:68.5pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span style="font-weight:bold">AM Best</span></p></td><td style="width:72.25pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span style="font-weight:bold">Fitch</span></p></td></tr><tr style="height:11.65pt"><td style="width:74pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span style="font-weight:bold">1</span></p></td><td style="width:74.5pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>AAA</span></p></td><td style="width:67.05pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>Aaa</span></p></td><td colspan="2" style="width:69.3pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>A++</span></p></td><td style="width:72.25pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>AAA</span></p></td></tr><tr><td style="width:74pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span style="font-weight:bold">2</span></p></td><td style="width:74.5pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>AA+</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>AA</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>AA-</span></p></td><td style="width:67.05pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>Aa1</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>Aa2</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>Aa3</span></p></td><td colspan="2" style="width:69.3pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>A+</span></p></td><td style="width:72.25pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>AA+</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>AA</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>AA-</span></p></td></tr><tr><td style="width:74pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span style="font-weight:bold">3</span></p></td><td style="width:74.5pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>A+</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>A</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>A-</span></p></td><td style="width:67.05pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>A1</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>A2</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>A3</span></p></td><td colspan="2" style="width:69.3pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>A</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>A-</span></p></td><td style="width:72.25pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>A+</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>A</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>A-</span></p></td></tr><tr><td style="width:74pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span style="font-weight:bold">4</span></p></td><td style="width:74.5pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>BBB+</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>BBB</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>BBB-</span></p></td><td style="width:67.05pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>Baa1</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>Baa2</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>Baa3</span></p></td><td colspan="2" style="width:69.3pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>B++</span></p></td><td style="width:72.25pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>BBB+</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>BBB</span></p><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>BBB-</span></p></td></tr><tr><td style="width:74pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span style="font-weight:bold">5</span></p></td><td style="width:74.5pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>BB+ or below</span></p></td><td style="width:67.05pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>Ba1 or below</span></p></td><td colspan="2" style="width:69.3pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>B+ or below</span></p></td><td style="width:72.25pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>BB+ or below</span></p></td></tr><tr style="height:13.65pt"><td style="width:74pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span style="font-weight:bold">6</span></p></td><td style="width:74.5pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>Unrated</span></p></td><td style="width:67.05pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>Unrated</span></p></td><td colspan="2" style="width:69.3pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>Unrated</span></p></td><td style="width:72.25pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p class="BlockText" style="margin-right:0pt; margin-left:0pt; text-align:center; font-size:10pt"><span>Unrated</span></p></td></tr><tr style="height:0pt"><td style="width:84.8pt"></td><td style="width:85.3pt"></td><td style="width:77.85pt"></td><td style="width:0.8pt"></td><td style="width:79.3pt"></td><td style="width:83.05pt"></td></tr></tbody></table>

Where the superannuation entity has investments with multiple rating from two or more of the rating agencies in the table above, the entity should consistently apply the rating of a single agency wherever possible. For example, a superannuation entity may have a number of counterparties that are rated by S&P and Fitch. In this case the entity should use a single agency that will be consistently applied whenever the individual ratings conflict.

The ratings in the above table from the respective rating agencies are generally consistent with long term rating/debt securities. Where superannuation entities invest in counterparties/securities that have only been issued with short term counterparty rating, then superannuation entities should attempt to match these ratings into the above grades.

Unknown rating grade

If a rating grade is unknown or not available use rating grade 6. Where investment managers cannot confirm their ratings a rating grade 6 should also be used.

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

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:

1. Foreign currency monetary items outstanding at the reporting date must be translated at the spot rate at the reporting date.
2. Other items outstanding at the reporting date must not be re-translated subsequent to initial recognition of the transaction.

Monetary items are defined to mean money held and assets and liabilities that are to be received or paid in fixed or determinable amounts of money (e.g. claim payments, reinsurance recoveries).

Monetary items arising under foreign currency derivative contracts at the reporting date must be translated as follows:

• Where the exchange rate is fixed in the contract, at that fixed exchange rate; and
• Where the exchange rate varies, at the spot rate at the reporting date.

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

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

General definitions

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

Form Name

Statement of Financial Performance

Derivative Financial Instruments

Reporting period

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

Important!

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

Lodgement requirements

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

Four sets of quarterly returns are required each year.

Amendments

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

Basis of preparation

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

Basis of accounting (Cash vs Accruals):

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

Important!

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

Direct vs Indirect investments:

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

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

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

Netting off of Amounts:

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

Scope:

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

Net Market Value:

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

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

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

Market value of charged/encumbered assets

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

Unit of measurement

The above forms are to be prepared in thousands of Australian dollars (AUD), rounded to the nearest thousand, i.e. with no decimal place. As a general rule, amounts denominated in foreign currency are to be converted to AUD in accordance with the requirements of the current Australian accounting standards regarding Foreign Currency Translation.

The general requirements for translation are:

1. Foreign currency monetary items outstanding at the reporting date must be translated at the spot rate at the reporting date.
2. Other items outstanding at the reporting date must not be re-translated subsequent to initial recognition of the transaction.

Monetary items are defined to mean money held and assets and liabilities that are to be received or paid in fixed or determinable amounts of money (e.g. claim payments, reinsurance recoveries).

Monetary items arising under foreign currency derivative contracts at the reporting date must be translated as follows:

• Where the exchange rate is fixed in the contract, at that fixed exchange rate; and
• Where the exchange rate varies, at the spot rate at the reporting date.

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

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