Part Instruction guide for specific items - Financial Sector (Collection of Data) determination No. 59 of 2005 - Instruction guide for specific items | Zoe
Completion of SRF 310.0 Statement of Financial Position
This form must be completed on an annual basis by all trustees of Small APRA Funds (SAFs) and Single Member Approved Deposit Funds (SMADFs).
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 annual return.
Note: All forms included in the SRF 300 series should be submitted together as an annual return, not individually as separate forms.
Purpose
This form collects specific financial information on the financial position of the superannuation entity. Information reported in this form is important, as it forms part of APRA’s monitoring and analysis framework for individual superannuation entities and the industry.
This Guide has been prepared to assist in the completion and lodgement of SRF 310.0 Statement of Financial Position. For ease of use, the Guide has been split into three main sections as follows:
Lodgement and validation of and changes to SRF 310.0 Statement of Financial Position;
General guidance – this guidance provides principles that should be applied to all items throughout SRF 310.0 Statement of Financial Position; and
Instruction guide for specific items – this guidance should be applied to the specific items which relate to each superannuation entity.
Lodgement and validation of SRF 310.0 Statement of Financial Position
Lodgement and authentication codes
This form must be completed and lodged to APRA by a corporate or natural ‘person’ (trustee director or administrator), and not by the superannuation entity as the entity is not a ‘person’.
Once SRF 310.0 Statement of Financial Position has been completed and submitted to APRA, an authentication code is generated in D2A from information entered into the form. The authentication code and date submitted appear in the footer of each page of the return (‘return’ equates to all 8 forms). Any change of information entered or resubmission of the return will result in a change to the authentication code. The authentication codes and date submitted should be used by auditors to determine that the four forms audited (SRF 300.0 Statement of Financial Performance, SRF 310.0 Statement of Financial Position, SRF 320.0 Exposure Concentrations and SRF 330.0 Transactions with Associated Parties) have been submitted.
A receipt indicating successful lodgement of the return 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 return 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:
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.
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.
Cross form validations – this also indicates an error and must be corrected before the return can be lodged, for example Totals disclosed in SRF 310.1 Selected Disclosure of Investments must agree with the investments reported in item 3 ‘Investments’ on SRF 310.0 Statement of Financial Position.
Changes to SRF 310.0 Statement of Financial Position
As detailed above, any change of information entered or resubmission of the return will result in a change to the authentication code. SRF 310.0 Statement of Financial Position is one of the four forms which requires audit, with a copy of the audit report being provided to APRA together with the annual return. If an amendment is made to the return after the audit report relating to the return has been submitted to APRA, then a copy of the amended return must be:
Lodged with APRA; and
Forwarded to the auditor of the return. The auditor will then consider the magnitude and significance of the amendment to the returns in order to assess whether the audit report will have to be re-issued.
General guidance for completion of SRF 310.0 Statement of Financial Position
Please read document “Reporting Requirements and General Instruction Guide” before completing this form.
Important!
Unless otherwise indicated, report all items on the form as positive numbers. SRF 310.0 Statement of Financial Position must not be considered in terms of the double entry accounting method. Positive numbers are required throughout the form, even in relation to a credit entry, to enable the validation calculations to be generated accurately. Liability balances should only be reported as a negative number if a loss has occurred. All negative numbers will have to be confirmed by the user and a description provided in line with the Warnings validation as described above.
Important!
Report all balances in the tables throughout the form as positive numbers.
Important!
Report all disclosures rounded to the nearest thousand dollars. Do not use decimal numbers i.e. when dividing the value to obtain a rounded balance to the nearest thousand dollars, ensure that the figure is whole. Do not show cents.
Important!
There is no materiality limit applied to the disclosure of amounts within SRF 310.0 Statement of Financial Position. All balances must be recorded. ‘Other’ items cannot be omitted based on materiality levels, but must disclose amounts that cannot be shown in the standard classifications. Each superannuation entity should use its own judgement in grouping items into meaningful categories.
Important!
The amounts disclosed within SRF 310.0 Statement of Financial Position should be reconcilable with the balances disclosed within the superannuation entities’ trial balance and/or financial statements prepared under current Australian Accounting Standards.
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.
Basis of accounting (cash vs. accruals):
Items on this form should be reported on a basis consistent with the accounting treatment (cash or accruals basis) adopted by the superannuation entity. APRA would ordinarily expect that regulated superannuation entities are ‘reporting entities’, and will therefore apply an accruals basis, in accordance with the requirements of current Australian Accounting Standards and the guidance in APRA Superannuation Circular No. V.A.2.
For example, where a receivable or payable is recognised at period end under the entity’s accounting policy, the cash amount received or paid during the period should be adjusted by adding the receivable/payable amount at the end of the current period and subtracting the receivable/payable amount at the end of the previous year.
Netting off of amounts:
Unless otherwise specifically stated, institutions are required to disclose data on a gross basis, with no netting, even where the institutions comply with the prerequisites for netting outlined in current Australian Accounting Standards. For example:
contributions should be reported before deducting contributions tax, entry fees, deferred entry fees, commissions, management fees and any other ongoing fees or charges deducted from the contributions received (where applicable to the superannuation entity); and
investment expenses should be disclosed before deducting separately identifiable direct investment expenses.
Direct vs. indirect investments:
Certain items on this form distinguish between ‘directly held’ investments and those which are not directly held.
Directly held investments are those made by the superannuation entity in its own name, as part of the internal investment management function, 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. 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.
Disclosures regarding directly held investments and investments in individually managed mandates/portfolios are required to be disclosed on a look-through basis i.e. the underlying investments in the portfolio must be analysed and reported separately.
Investments that are not directly held include underlying investments that are held with external investment managers (such as investments in PSTs or unit trusts)
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.
Instruction guide for specific items
Assets
Assets are to be measured at net market value.
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 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.
Liabilities
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 loss to the superannuation entity.
Exclude
The aggregate net market value of derivatives where this represents a net gain to the superannuation entity. This is to be reported under ‘Assets’ in item 3.5. ‘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).
Borrowings
Amounts to be reported in the item include but are not limited to the following:
Securities sold under agreements to repurchase.
Drawn down balance of overdraft facilities, standby lines or other forms of off- balance sheet funding.
Short-term loans or borrowings.
7.1. Total borrowings
Report the total value of all borrowings at this item.
7.1.1. Total borrowings secured against assets of the superannuation entity
Report the value of the portion of borrowings of the superannuation entity, where the borrowings are secured against assets of the superannuation entity. The value in this field will already form part of the total borrowings in item 7.1.
Current tax liabilities
Show the net of current tax assets (report as a negative) and current tax liabilities determined in accordance with the provisions of current Australian Accounting Standards and other mandatory professional reporting requirements.
Current tax asset means the amount of current tax recoverable as at the reporting date
Current tax liability means the amount of current tax payable as at the reporting date
Important!
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’
Deferred tax liabilities
Deferred tax liabilities means the amounts of income taxes to be settled in future reporting periods in respect of assessable temporary differences, determined in accordance with the provisions of current Australian Accounting Standards and other mandatory professional reporting requirements.
Sundry creditors
Report the total value of all other payables of the superannuation entity as at the end of the financial year, that are not separately reported in items 6 to 9. Includes (but is not limited to):
Benefits payable - The benefits payable value disclosed should be the benefits payable at year end to members exited during the year. It should not be reported as the accrued benefit liabilities of all members;
trade creditors and accruals (for example, insurance premiums, administration fees or GST payable);
payables relating to unsettled purchases (executed purchases of investments where the monies have not yet been paid);
unallocated contributions; and
amounts payable to the ATO for GST or superannuation surcharge.
Total liabilities
Represents the sum of the following:
6.0. Direct holdings of derivative financial instruments;
7.1. Total borrowings;
8.0. Current tax liabilities;
9.0. Deferred tax liabilities; and
10.0. Sundry creditors.
Net assets available to pay benefits
Represents SRF 310.0 Statement of Financial Position item 5 ‘Total Assets’ minus SRF 310.0 Statement of Financial Position item 11 ‘Total Liabilities’.
Important!
The total at item 12 must equal the total at item 16 ‘Total’.
Important!
If SRF 310.0 Statement of Financial Position item 12 is either $nil or a negative figure, then it is APRA’s expectation that the superannuation entity should have wound up. The wind-up of the superannuation entity should be disclosed in SRF 340.0 Superannuation Entity Profile item 4. In some cases, a superannuation entity providing risk only benefits may have zero assets.
Net assets available to pay benefits is represented by:
Liability for accrued benefits
Report value of members’ accrued benefits as at the reporting date. This is to be determined in accordance with the requirements of current Australian Accounting Standards.
The liability for accrued benefits for a defined contribution superannuation entity is the superannuation entity’s present obligation to pay benefits to members and beneficiaries in the future and is calculated as the difference between the carrying amounts of the assets and the carrying amounts of the liabilities as at the reporting date.
Defined benefit superannuation entities
Accrued benefits of a defined benefit superannuation entity shall be measured, using actuarial assumptions and valuations where appropriate, as the present value of expected future payments arising from membership of the plan up to the measurement date.
A formal actuarial review for defined benefit superannuation entities is completed at least every three years under SIS Regulation 9.29. APRA is not advocating that a superannuation entity must complete these on a more frequent basis than is required under SIS.
Accordingly, for financial years in between the formal actuarial valuations, this item should be filled out by reporting the difference between the carrying amounts of the assets and the carrying amounts of the liabilities as at the reporting date i.e. the value reported in item 12 ‘Net assets available to pay benefits’. In this event, $Nil figures should be entered at both item 14 ‘Reserves’ and item 15 ‘Excess/deficiency of assets’.
Reserves (unallocated benefits)
Report the balance of all reserves as at the end of the year. This relates to unallocated reserves of the superannuation entity (i.e. income that has not been specifically allocated to member accounts). Reserves can be used for such things as smoothing investment earnings, topping up member benefits, offsetting fees.
Defined contribution:
Amounts in defined contribution/accumulation superannuation entities that are unallocated to members but do not form part of a formal reserve should also be reported at this item. This includes, for example, unallocated balances which are held overnight in a bank account while the member paperwork is being processed.
Defined benefit:
Amounts in defined benefit superannuation entities that are unallocated to members but do not form part of a formal reserve will be included at item 15.0 ‘Excess/deficiency of assets over liabilities’.
For defined benefit superannuation entities, where a formal actuarial valuation has not been conducted as at the reporting date, a $Nil balance should be entered at this item.
Note that if all investment earnings and superannuation entity expenses are put through reserves and the members receive earnings and pay fees and contributions tax, these should not be netted together to reflect net movement to or from reserves. Instead they should be reported in line with the entity’s accounting practices with details of movements in reserves during the reporting period as follows:
14.1. Opening balance
Report the opening balance of this reserve carried forward from the last reporting period. Where the reserve is only created this current reporting period, report zero.
14.2. Transfer to reserve from current year earnings
Report the cumulative value of funds that have been transferred from current year’s earnings to this reserve during the current financial year of the superannuation entity.
14.3. Transfer from reserve to members vested benefits
Report the cumulative value of funds that have been transferred from this reserve to members’ benefits during the current financial year of the superannuation entity.
14.4. Closing balance
Represents the sum of items 14.1 and 14.2 less item 14.3.
Excess/deficiency of assets over liabilities
This item relates to defined benefit superannuation entities. The excess/deficiency of assets available for use for a defined benefit superannuation entity will generally be determined by an actuary when a formal valuation is conducted. Accordingly for a defined benefit superannuation entity, only complete this item where this is applicable and is determined by an actuarial review. Where a formal actuarial valuation has not been conducted as at the reporting date, a $Nil balance should be entered at this item.
For item 15, record an excess as a positive number and a deficiency as a negative number.
Total
Consists of the sum of:
13.0. ‘Liability for accrued benefits’;
14.4. ‘Closing balance of unallocated reserves’; and
15.0. ‘Excess/deficiency of assets over liabilities’.
Important!
The total at item 16 must equal the total at item 12.
Important!
If SRF 310.0 Statement of Financial Position item 16 is either $nil or a negative figure, then it is APRA’s expectation that the superannuation entity should have wound up. The wind-up of the superannuation entity should be disclosed in SRF 340.0 Superannuation Entity Profile item 4.
Entity balance
Amounts reported for the superannuation entity’s balance will be used by APRA to calculate the amount of levy payable by the registered superannuation entity.
17.1. Net balance of entity
Report the net balance of the superannuation entity at the end of the financial year. The amount should be determined from the audited accounts of the registered superannuation entity and, to the extent necessary, from the reports from life insurance companies.
Important!
SRF 310.0 Statement of Financial Position item 17.1 ‘Net balance of entity’ should be equal to SRF 310.0 Statement of Financial Position item 13 ‘Liability for accrued benefits’.
For accumulation entities, SRF 310.0 Statement of Financial Position item 17.1 ‘Net balance of entity’ should be equal to SRF 310.0 Statement of Financial Position item 12 ‘Net assets available to pay benefits’.
17.2. Notional balance
If the assets of the superannuation entity consist entirely of “individual policies” and the insurer does not know the net balance of the superannuation entity, leave item 17.1 blank and report the Notional Balance of the superannuation entity. This figure is arrived at by multiplying $20,000 by the number of members of the superannuation entity.
Otherwise leave item 17.2 blank.
An “individual policy” is a single policy of life insurance over the life of one person, or a sub policy of life insurance over the life of one person which forms part of a blanket policy of life insurance.
17.3. Estimated Balance as at 30th June
If a registered superannuation entity has a balance date other than 30 June, report in item 17.3 an estimate of the superannuation entity’s net balance at 30 June, as follows:
For early balancing superannuation entities (for example, an APRA-regulated superannuation entity which has a year of income ending before 30 June 2004, and which is lodging its annual return for the 2003-2004 year), report the estimated net balance as at the 30 June 2004 i.e. the 30 June immediately following year end.
For late balancing superannuation entities (that is, an APRA-regulated superannuation entity which has a year of income ending after 30 June 2004 and is lodging its annual return for the 2003-2004 year), report the estimated net balance as at the 30 June 2004 i.e. the 30 June immediately preceding year end.
Year End Estimated Balance Year End
(Early Balancers) at 30 June 2004 (Late Balancers)