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Turn the raw legal text into a practical explanation grounded in Financial Sector (Collection of Data) determination No. 90 of 2005 - Reporting Standard ARS 325.0 (2005) - International Operations.

Instruction Guide

Locally incorporated banks are instructed to prepare a separate form for each of their related bank offices located overseas. Related bank offices include the bank’s branches, banking subsidiaries (e.g. deposit-taking companies in Hong Kong) and banking joint ventures.

General directions and notes

Reporting entity[1]

The International Operations form is to be completed by locally incorporated banks for each foreign bank office on an unconsolidated basis. This includes international transactions between any related bank offices. Foreign ADIs operating through branches in Australia are not required to complete this form

Reporting period

The form is to be completed as at the last day of the stated reporting quarter. Locally incorporated banks should submit the completed form to APRA within 20 business days after the end of the relevant reporting quarter

Unit of measurement

Banks are asked to complete the form in millions of Australian dollars rounded to one decimal place.

Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 1012 ‘Foreign Currency Translation’.

The general requirements of AASB 1012 for translation are:

Foreign currency monetary items outstanding at the reporting date must be translated at the spot rate at the reporting date.
Other items outstanding at the reporting date must not be retranslated subsequent to initial recognition of the transaction.

Monetary items are defined to mean money held and assets and liabilities that are to be received or paid in fixed or determinable amounts of money.

Monetary items arising under foreign currency derivative contracts at the reporting date must be translated as follows:

Where the exchange rate is fixed in the contract, at that fixed exchange rate; and
Where the exchange rate varies, at the spot rate at the reporting date.

Valuation

Foreign currencies are to be converted to AUD using the exchange rate effective as per the reporting date. Amounts should be expressed in millions of AUD with no decimal point.

Specific instructions

Part 1: Statement of assets and liabilities

All figures should be prepared in accordance with Australian accounting standards.

Part 2: Off balance sheet business

The off balance sheet information should be prepared in accordance with the instructions to ARF 112.2 Off Balance Sheet Business.

Part 3: Credit risk profile