AssetsAssets

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 lenders 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 bad and 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 provision for doubtful debts

Represents item 2.1 less item 2.2.

2.4. Member contributions receivable

Include contributions receivable (i.e. due but not received) from members as at end of the financial year, to the extend known. For further guidance as to what is included in ‘member’ contributions refer to the instructions for SRF 200.0 Statement of Financial Performance, in particular item 1.2 of that form.

2.5. Employer contributions receivable