Subdivision General definitions - Financial Sector (Collection of Data) determination No. 61 of 2005 - General definitions

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General definitions

The Glossary Terms contains definitions of commonly used terms in the forms and instruction guides to the forms.

Item	Definition
Associates	Associate is defined consistent with the definition provided by the current Australian accounting standard ‘Accounting for Investments in Associates’.Associate means an investee, not being:(a) a subsidiary of the investor; or(b) a partnership of the investor; or(c) an investment acquired and held exclusively with a view to its disposal in the near future.over which the investor has significant influence.Significant influence means the capacity of an entity to affect substantially (but not control) either, or both, of the financial and operating policies of another entity.
Controlled entity/Subsidiary	Definitions of controlled entities/subsidiaries should be consistent with the requirements of the current Australian accounting standards regarding ‘Consolidated Financial Reports’.It defines a controlled entity/“subsidiary" as meaning an entity, which is controlled by a parent entity. A parent entity is defined as an entity, which controls another entity.Entity means any legal, administrative, or fiduciary arrangement, organisational structure or other party (including a person) having the capacity to deploy scarce resources in order to achieve objectives.Control means the capacity of an entity to dominate decision-making, directly or indirectly, in relation to the financial and operating policies of another entity so as to enable that other entity to operate with it in pursuing the objectives of the controlling entity.
Assets	Assets is to be interpreted in accordance with the Australian Accounting Standards and authoritative pronouncements and Statements of Accounting Concepts.
Liabilities	Liabilities is to be interpreted in accordance with the Australian Accounting Standards and authoritative pronouncements and Statements of Accounting Concepts.
Fair Value	Fair value means the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's-length transaction, and is determined as follows:The quoted market price in an active and liquid market (ie market value); orwhen there is infrequent activity in a market, the market is not well established, small volumes are traded relative to the asset or liability to be valued, or a quoted market price is not available – an estimate of a price for the asset or liability in an active and liquid market.For the purposes of the APRA forms, fair value should ignore transaction costs. Market value is defined for accounting purposes as a subset of fair value - refer to the definitions of market value and net market value below.

Parent entity	Parent entity is defined consistent with the current Australian accounting standards regarding ‘Consolidated Financial Reports’ and simply means an entity which controls another entity.
Pooled Superannuation Trust (PST)	A PST is a trust in which assets of a number of superannuation entities, approved deposit funds (ADFs) or other PSTs are invested and managed by a professional manager. The investment income of the PST is taxed at concessional rates within the PST.
Principal Value	Represents the notional or face value.
Related parties/entities	For the purposes of this form, related entities are to be interpreted consistently with the meaning as in the current Australian accounting standards regarding ‘Related Party Disclosures’. It provides that related party means, in relation to a reporting entity, any:(a) other entity that at any time during the financial year, has control or significant influence over the reporting entity; or(b) other entity that at any time during the financial year, is subject to control or significant influence by the reporting entity (i.e. subsidiary or an associated entity); or(c) other entity that, at any time during the financial year, is controlled by the same entity that controls the reporting entity. Referred to as a situation in which entities are subject to common control (i.e. Joint Ventures); or(d) other entity that, at any time during the financial year, is controlled by the same entity that significantly influences the reporting entity; or(e) other entity that, at any time during the financial year, is significantly influenced by the same entity that controls the reporting entity; or(f) director of the reporting entity or any of their director-related entities; or(g) director of any other entity identified as a related party under any of paragraphs (a) to (e), or any of their director-related entities;but excludes any other entity (except those identified as a related party under paragraph (f)) where the related party relationship results solely from normal dealings of:(h) financial institutions; or(i) authorised trustee corporations; or(j) fund managers; or(k) trade unions; or(l) statutory authorities; or(m) government departments; or(n) local governmentsThe current Australian accounting standards define director-related entities as meaning “the spouses of such directors, relatives of such directors or spouses and any other entity under the joint or several control or significant influence of such directors, spouses or relatives”.Relative in relation to a person is defined in the Corporations Act to mean the spouse, partner, son, daughter, or brother or sister of the person.
Reporting period	In relation to APRA forms:Reporting period end for all APRA forms (i.e. annual and quarterly reporting) is based on the year of income of the superannuation entity, not a calendar year.The financial information requested in the forms is to be reported as at the last day of the reporting period on a year of income to date basis of the superannuation entity.

Parent entity

Parent entity is defined consistent with the current Australian accounting standards regarding ‘Consolidated Financial Reports’ and simply means an entity which controls another entity.

Pooled Superannuation Trust (PST)

A PST is a trust in which assets of a number of superannuation entities, approved deposit funds (ADFs) or other PSTs are invested and managed by a professional manager. The investment income of the PST is taxed at concessional rates within the PST.

Principal Value

Represents the notional or face value.

Related parties/entities

For the purposes of this form, related entities are to be interpreted consistently with the meaning as in the current Australian accounting standards regarding ‘Related Party Disclosures’. It provides that related party means, in relation to a reporting entity, any:(a) other entity that at any time during the financial year, has control or significant influence over the reporting entity; or(b) other entity that at any time during the financial year, is subject to control or significant influence by the reporting entity (i.e. subsidiary or an associated entity); or(c) other entity that, at any time during the financial year, is controlled by the same entity that controls the reporting entity. Referred to as a situation in which entities are subject to common control (i.e. Joint Ventures); or(d) other entity that, at any time during the financial year, is controlled by the same entity that significantly influences the reporting entity; or(e) other entity that, at any time during the financial year, is significantly influenced by the same entity that controls the reporting entity; or(f) director of the reporting entity or any of their director-related entities; or(g) director of any other entity identified as a related party under any of paragraphs (a) to (e), or any of their director-related entities;but excludes any other entity (except those identified as a related party under paragraph (f)) where the related party relationship results solely from normal dealings of:(h) financial institutions; or(i) authorised trustee corporations; or(j) fund managers; or(k) trade unions; or(l) statutory authorities; or(m) government departments; or(n) local governmentsThe current Australian accounting standards define director-related entities as meaning “the spouses of such directors, relatives of such directors or spouses and any other entity under the joint or several control or significant influence of such directors, spouses or relatives”.Relative in relation to a person is defined in the Corporations Act to mean the spouse, partner, son, daughter, or brother or sister of the person.

Reporting period

In relation to APRA forms:Reporting period end for all APRA forms (i.e. annual and quarterly reporting) is based on the year of income of the superannuation entity, not a calendar year.The financial information requested in the forms is to be reported as at the last day of the reporting period on a year of income to date basis of the superannuation entity.