Reporting Form ARF 326.0

Offshore Banking Units

Instruction Guide

This return collects the assets and liabilities recorded on the books of your offshore banking unit declared under Sub-section 128 AE (2) of the Income Tax Assessment Act (1936) to be an offshore banking unit. Do not include assets and liabilities on the books of related corporations and overseas offices.

In compiling this return:

• include any transactions not posted as at the reporting date.
• translate all foreign currency amounts to Australian dollar equivalents using the mid of market spot rates applying as at the close of business.
• report amounts in millions of Australian dollars, rounded to the first decimal place.

"Other OBU's" refers to Australian financial institutions declared by the Federal Treasurer to be offshore banking units.

A "related corporation" is defined as a company in which your institution has a 20 per cent or more beneficial interest; or a company which has a 20 per cent or more beneficial interest in your institution.

"Overseas offices" includes your branches, agencies and other offices.

A "resident" is a person ordinarily resident in Australia, or an enterprise or body operating in Australia. Australian subsidiaries and branches of foreign enterprises are regarded as residents, while foreign branches and subsidiaries of Australian enterprises are regarded as non-residents.

General directions and notes

Reporting entity

The Offshore Banking Units form is to be completed by all locally incorporated banks and Foreign ADIs on a Domestic Books basis.

The Domestic books of the locally incorporated banks and Foreign ADIs relates to the Australian books of the Australian ADI and has the following scope:

• Is an unconsolidated report of the Australian licensed ADI's operations/transactions that are booked inside Australia.
• Exclude offshore branches of the Australian licensed ADI from this reporting unit.
• Exclude offshore banking units based overseas from this reporting unit.
• Do not consolidate Australian and offshore controlled entities or associated entities that are not ADIs.
• Include Australian based offshore banking units of the licensed ADI.
• Include transactions with non-residents recorded on Australian books.

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’.