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 below.
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 2.7 ‘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 doubtful debts
Represents item 2.1 less item 2.2.
2.4. Member contributions receivable
Include contributions receivable from members (i.e. due but not received) as at the end of the financial year, to the extent known. For further guidance as to what is included in ‘member’ contributions refer to the instructions for SRF 300.0 Statement of Financial Performance, in particular item 1.2 of that form.
2.5. Employer contributions receivable
Include contributions receivable from employers which are receivable in respect of the financial year (i.e. due but not received) by the superannuation entity, where known. For further guidance as to what is included in ‘employer’ contributions (including Superannuation Guarantee Contributions, award contributions, voluntary employer contributions, and salary sacrifice contributions) refer to the instructions for SRF 300.0 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. 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;
insurance proceeds receivable;
outstanding fees; and
refundable GST.
If a superannuation entity has insurance proceeds receivable under SRF 310.0 Statement of Financial Position item 2.7, it should also report insurance proceeds income and/or insurance premiums expense in SRF 300.0 Statement of Financial Performance item 5.3 ‘Total proceeds on insurance policies’ and SRF 300.0 Statement of Financial Performance item 6 ‘Members death and/or disability insurance premiums expense’ respectively.
2.8. Total Receivables and other assets
Represents the sum of items 2.3 to 2.7.
Investments
Include investments of the superannuation entity in this section, in the most appropriate of the categories provided.
Net market value
In the “Total Net Market Value” column for items 3.1 to 3.11, 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 3.11, 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.
Disclosures regarding investments in individually managed mandates/portfolios are required to be disclosed on a look-through basis, consistent with the disclosures for directly-held investments i.e. the underlying investments in the portfolio must be analysed and reported separately. Investments held with external investment managers should be disclosed under the appropriate category (for example a PST would be disclosed under item 3.7) but a look-through basis is not required.
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 disclosed according to the criteria above.
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.
3.1. Placements, deposits, loans and debt securities
Report the net market value of investments in the form of placements, deposits and loans (including secured and unsecured, invested at call including 11am, money market or term basis), as well as holdings of debt securities.
Exclude
The value of interest rate related derivative contracts. These are to be disclosed separately in item 3.5. ‘Direct holdings of derivative financial instruments’ (where the exposure represents a net gain to the superannuation entity) or in item 6 ‘Direct holdings of derivative financial instruments’ (where the exposure represents a net loss).
Report the total net market value of placements, deposits, loans and debt securities classified into the following:
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.
Exclude
Investment in cash management trusts. These are to be reported in item 3.8; and
Interest rate related derivative financial instruments. These are to be reported under item 3.5.
Short term debt securities (e.g. bills of exchange, certificates of deposit, commercial paper, promissory notes) and long term debt securities (e.g. securitised instruments) issued by the parties listed above.
Exclude
Deposits and placements with or holding of debt securities issued by Authorised Deposit Taking Institutions. These should be included at item 3.1.1.
3.1.3. All other
Report the net market value of all other placements, deposits, loans and debt securities other than those reported in item 3.1.1. Includes, but is not limited to, 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) issued by governments or parties other than those listed in item 3.1.2.
3.2. Equity securities of listed corporations and units in listed unit trusts
Report the net market value of investments that represent holdings of equity securities (e.g. shares) of listed corporations and units in listed unit trusts on all exchanges.
Exclude
Holdings of unlisted equity securities and units in unlisted private entities (item 3.3);
Investments in unlisted retail/public offer cash management unit trusts. These are to be reported under item 3.8;
Investments in PSTs. These are disclosed separately under item 3.7 ‘Pooled super trusts’; and
Equity related derivative contracts. These are to be disclosed separately in item 3.5 “Direct holdings of derivative financial instruments” where the exposure represents a net gain to the superannuation entity or in item 6 “Direct holdings of derivative financial instruments” where the exposure represents a net loss to the superannuation entity.
3.3. 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.
The value should agree with the sum of the totals of ‘Part A: Investments in Equity Securities of Unlisted Corporations and Units in Unlisted Private Trusts’ and ‘Part B: Interest in Ventures’ in SRF 310.1 Selected Disclosure of Directly Held Investments.
Exclude
Investments in PSTs. These are disclosed separately under item 3.6.1 ‘Pooled super trusts’.
3.4. Direct holdings of property
Report the total of the superannuation entity’s directly 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.
Include
Property investments acquired as part of the internal investment management of the superannuation entity; and
Underlying property investments held in the form of an external individually managed mandate/portfolio or discretely managed portfolio.
Exclude
Investment in property trusts. Report holdings in listed property trusts under item 3.2, unlisted private property trusts in item 3.3 and unlisted public offer property trusts in item 3.8.
The superannuation entity’s total net market value of property investments is to be classified into the following categories:
3.4.1. Property 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.
3.4.2. Property which is completed
Report the net market value of direct property investments that are completed i.e. all property investments not reported under item 3.4.1.
3.5. Direct holdings of derivative financial instruments
Report the net market value of derivatives exposure of the superannuation entity that is reported in SRF 310.2 Derivative Financial Instruments, where the net market value of the exposure represents a net gain to the superannuation entity.
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 must be shown in item 3.11 ‘Other’.
3.6. Investment and/or insurance policies held in 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; and
The net market value of policies in respect of death, total, permanent or temporary disablement.
3.7. Investments in Pooled Super Trusts
Report the net market value of the superannuation entity’s investment in Pooled Super Trusts.
Exclude
Unitised investments with life companies where the original or primary investment is an insurance or investment policy (item 3.6).
3.8. Investments in unlisted retail/public offer unit trusts
Report the net market value of the superannuation entity’s investment in unlisted retail/public offer unit trusts. Includes investments in unlisted retail/public offer cash management unit trusts.
Exclude
Units in private trusts (item 3.3) and wholesale trusts (item 3.9).
3.9. Investments in 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), listed unit trusts (item 3.2) or unlisted retail/public offer trusts (item 3.8).
3.10. Investments in 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.
3.11. Other (provide details in Table 2 below)
Disclose in Table 2 the net market value of all other investments not separately reported above in items 3.1 to 3.10. Provide a description of the nature and amount of each item listed.
Note that derivative assets held via external individually managed mandates are required to be reported in table 2 under a description of 'derivatives - not directly managed'. If the net or aggregate position is a liability, record the amount as a negative figure.
3.12. Total investments
Represents the sum of all investments reported in items 3.1 to 3.11, for each column.
Important!
When a superannuation entity reports foreign tax credits under SRF 300.0 Statement of Financial Performance item 17.1.2, APRA expects the entity to also report holdings of investments outside Australia in SRF 310.0 Statement of Financial Position item 3.12 ‘Total investments’. As a consequence of this, the amount included under item 3.12 in the ‘total net market value’ column should be greater than the amount included under item 3.12 in the ‘net market value in Australia’ column.
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.
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 SRF 300.0 Statement of Financial Performance item 17 ‘Tax expense on net income’
Total assets
Represents the sum of the following:
1.0. Securities purchased under agreements to resell;
2.8. Total receivables;
3.12. Total Investments (‘Total Net Market Value’ column); and
4.0. Deferred tax assets.
Subdivision Assets - Financial Sector (Collection of Data) determination No. 59 of 2005 - Assets | Zoe