Section Report the full name of the venture. - Financial Sector (Collection of Data) determination No. 60 of 2005 - Report the full name of the venture. | Zoe
Completion of SRF 310.1 Selected Disclosure of Investments
This form must be completed on an annual basis by all trustees of Small APRA Funds (SAFs) and Single Member Approved Deposit Funds (SMADFs).
Trustees of superannuation entities that invest only in PSTs are not required to complete SRF 310.1 Selected Disclosure of Investments or SRF 310.2 Derivative Financial Instruments in respect of those entities. These forms can be left blank as D2A recognises blanks as zeros; however they are still required to be submitted as part of the annual return. Trustees of superannuation entities that hold Investments in PSTs that have a value of more than 5% of total assets, will be required to report on SRF 320.0 Exposure Concentrations.
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 instruction guide is designed to assist in the completion of SRF 310.1 Selected Disclosure of Investments. The information requested in this form is required by APRA.
Lodgement and validation of SRF 310.1 Selected Disclosure of Investments
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 310.1 Selected Disclosure of Investments 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.
General guidance for completion of SRF 310.1 Selected Disclosure of Investments
This form is separated into the following parts:
Part A: Investments in equity securities of unlisted corporations and unlisted private trusts
Part B: Interest in ventures
The requirements for each of these parts are detailed below.
SRF 310.1 Selected Disclosure of Investments is an annexure providing further detail on the composition of the aggregated values reported for investments in SRF 310.0 Statement of Financial Position. In particular the following must agree:
Total of Part A PLUS total of Part B of this form must agree with the value reported for item 3.3 ‘Equity securities of unlisted corporations, units in unlisted private trusts and interests in ventures’ in SRF 310.0 Statement of Financial Position.
Important!
Not all investments, as disclosed on SRF 310.0 Statement of Financial Position item 3, are required to be reported on SRF 310.1 Selected Disclosure of Investments. However, in accordance with the above requirements, the net market value of investments reported in Parts A and B of SRF 310.1 Selected Disclosure of Investments should agree to the relevant items in SRF 310.0 Statement of Financial Position.
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 310.1 Selected Disclosure of Investments. 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. The form can be left blank as D2A recognises blanks as zeros.
Classification of investments – internal and external holdings
For the purpose of this form and for annual reporting requirements, include direct holdings of underlying investments acquired as part of the internal investment management function of the superannuation entity, and the underlying investments and other assets that form part of an external individually managed mandate or portfolio, as follows:
(i) Internal investment management
Refers to the arrangement where the investment management function is performed internally rather than being outsourced by the trustee.
(ii) External individually managed mandates (or discretely managed portfolios)
Refers to the arrangement where investments of the superannuation entity are managed by an external professional investment manager, appointed by the trustee of the superannuation entity, in the form of an individually or discretely managed portfolio tailored for the superannuation entity.
These categories do not include investments held directly with external investment managers, where these are not individually managed on behalf of the superannuation entity. These investments are disclosed in the appropriate other categories under item 3 on SRF 310.0 Statement of Financial Position.
Instruction guide for specific items
Part A: Investments in equity securities of unlisted corporations and units in unlisted private trusts
Assets that are NOT to be reported in Part A:
Do not include investments in equity securities of listed corporations and units in listed trusts. These are reported in item 3.2 ‘Equity securities of listed corporations and units in listed unit trusts’ in SRF 310.0 Statement of Financial Position.
Do not include investments in Pooled Super Trusts. These are reported in item 3.7. Pooled Super Trusts in SRF 310.0 Statement of Financial Position.
Do not include investments in unlisted retail/public offer unit trusts. These are reported in item 3.8 ‘Investments in unlisted retail/public offer unit trusts’ in SRF 310.0 Statement of Financial Position.
Do not include investments in wholesale trusts. These are reported in item 3.9 ‘Wholesale Trusts’ in SRF 310.0 Statement of Financial Position.
Do not include investments in entities that are considered to be joint ventures, these holdings are disclosed in Part B of this form.
Part A: Explanation of column headings - internal and external holdings
(1) Name of corp/trust
Report the full name of the entity.
(2) ABN
Report the Australian Business Number of the entity, or if no ABN, leave 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.
(3) Main business
In the space provided, detail a brief description of the nature of the main business conducted by the entity.
(4) Ownership percentage/interest %
Disclose the percentage (to the nearest whole number) of the reporting superannuation entity’s ownership of the equity securities or units issued by the investment entity i.e. number of securities/units owned by the superannuation entity divided by total securities/units on issue, multiplied by 100.
(5) Initial cost
Disclose the initial cost of the investment of the reporting superannuation entity in the investment entity. Where this involves multiple acquisitions, sum the cost of each acquisition.
(6) Net market value
Disclose the net market value of the investment of the reporting superannuation entity in the investment entity as at the end of the financial year. Net market value is to be interpreted as defined in accordance with the current Australian Accounting Standards.
(7) Total assets of corp/trust
Report the value of the total assets of the investment entity where known.
APRA’s expectations are that where the superannuation entity’s interest in the entity is considered significant (i.e. the investment holding demonstrates the capacity of the superannuation entity to exert significant influence over the entity under current Australian Accounting Standards) the superannuation entity should have knowledge of this value.
(8) Total liabilities of corp/trust
Report the value of the total liabilities of the investment entity where known.
APRA’s expectations are that where the superannuation entity’s interest in the entity is considered significant (i.e. the investment holding demonstrates the capacity of the superannuation entity to exert significant influence over the entity under current Australian Accounting Standards) the superannuation entity should have knowledge of this value.
(9) Distributions recognised as income (by the superannuation entity from its investment in the corp/trust)
Report the value of distributions from the investment entity that have been recognised as income by the reporting superannuation entity. This does not include (realised and unrealised) revaluation gains or losses associated with the net market valuation of the superannuation entity’s investment in the entity.
‘Total Net Market Value’
The sum of the ‘Total Net Market Value’ box for internal and external investment management in Part A and Part B should agree to SRF 310.0 Statement of Financial Position in item 3.3.
Part B: Interest in ventures
Scope
For the purposes of this form a joint venture is to be interpreted as defined in current Australian Accounting Standards:
“Joint venture means a contractual arrangement whereby two or more parties undertake an economic activity, which is subject to joint control.” A joint venture can take the form of the following:
Joint venture entity; or
Joint venture operation.
Joint venture entity means a joint venture that is in the form of an entity and does not include:
(a) an entity that is acquired and held exclusively with a view to its disposal in the near future
(b) an entity that operates under severe long-term restrictions which impair significantly its ability to make distributions to the venturer.
Joint venture operation means a joint venture that is not a joint venture entity and does not include an entity that:
(a) is acquired and held exclusively with a view to its disposal in the near future
(b) operates under severe long-term restrictions that impair significantly its ability to make distributions to the venturer.
Part B: Explanation of column headings - internal and external holdings
(1) Name of venture
Report the full name of the venture.
(2) Main business
In the space provided, detail a brief description of the nature of the main business conducted by the venture.
(3) Ownership percentage/interest %
Disclose the percentage of the reporting superannuation entity’s ownership or interest in the venture.
(4) Initial cost
Disclose the initial cost of the investment of the reporting superannuation entity in the venture.
(5) Net market value of interest in venture
Disclose the market value of the investment/interest of the reporting superannuation entity in the venture as at the end of the financial year. Market value is to be interpreted as defined in accordance with the current Australian Accounting Standards.
(6) Total assets of venture
Report the value of the total assets of the venture where known.
APRA’s expectations are that the superannuation entity should know this information where the interest is considered ‘significant’ under current Australian Accounting Standards.
(7) Total liabilities of venture
Report the value of the total liabilities of the venture where known.
APRA’s expectations are that the superannuation entity should know this information where the interest is considered ‘significant’ under current Australian Accounting Standards.
(8) Distributions recognised as income (by the superannuation entity from its investment in ventures)
Report the value of distributions from the venture that have been recognised as income by the reporting superannuation entity. This does not include (realised and unrealised) revaluation gains or losses associated with the net market valuation of the reporting superannuation entity’s investment in the venture.