Financial Sector (Collection of Data) determination No. 98 of 2005 - Reporting Standard ARS 391.0 (2005) - Commercial Finance
Licensed ADILicensed ADI
Start here
Get a plain-English read of Licensed ADI
Turn the raw legal text into a practical explanation grounded in Financial Sector (Collection of Data) determination No. 98 of 2005 - Reporting Standard ARS 391.0 (2005) - Commercial Finance.
This refers to the operations of the reporting ADI on a stand-alone basis.
Reporting period
The information provided in this form should be for the calendar month up to and including the last day of the reporting month. Locally incorporated banks, Foreign ADIs, Credit Unions, Cairns Penny Savings & Loans Limited and Building Societies should submit the completed form to APRA within 10 business days after the end of the relevant reporting month.
Unit of measurement
Banks, Credit Unions, Cairns Penny Savings & Loans Limited and Building Societies are asked to complete the form in thousands of Australian dollars with no 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.
Basis of preparation
Unless otherwise specifically stated, information reported on this form should comply with Australian accounting standards.
Definitions
A separate form for commercial finance in all eight states should be completed. Where the entity has no activity in any state, check the “nil form” box. The form requests details of new commitments to provide commercial finance to private and public enterprises and individuals. Only the Australian activities of the business should be included on the form. If exact figures are not available please provide careful estimates. Please note that the items listed under Including and Excluding are examples and should not be taken as a complete list of items to be included or excluded.
What is a “commitment”?
A commitment is a firm offer to provide finance which has been accepted by the client. A commitment generally exists once the loan application has been approved, and a loan contract or letter of offer has been issued to the borrower.
Including:
commitments to related corporations except to those related corporations within the same Financial Sector (Collection of Data) Act 2001 category or Australian and New Zealand Standard Industrial Classification (ANZSIC) class;
commitments for hire purchase agreements for commercial finance;
commitments for debt participation in leveraged lease agreements;
commitments that involve or make provision for the issue of bills of exchange to be accepted, discounted or drawn by you;
new commitments which have also been cancelled during the month;
commitments for standby agreements; and
commitments for revolving credit loans to individuals secured by mortgage (mortgage backed overdrafts) on residential properties where the stated purpose at application is as a commercial line of credit.
Excluding:
commitments to non-residents;
commitments for lease agreements (other than hire purchase agreements and debt participation in leveraged lease agreements), these should be reported on ARF 393.0 Lease Finance;
deposits with financial institutions;
the purchase of securities unless it involves a direct commitment to a client;
bills of exchange and promissory notes purchased and held;
commitments contingent on some specified eventuality (eg bill endorsement, guarantees, letter of credit) unless and until that eventuality occurs;
commitments for discounts which exists as options under acceptance commitments; and
commitments for personal investment loans – these should be reported on ARF 394.0 Personal Finance.
What is a “dwelling”?
A dwelling is a place of residence which is:
contained in a building which is an immobile structure;
private (i.e. not generally accessible to the public); and
self contained (i.e. includes bathing and cooking facilities).
How to consolidate
for corporations registered under the Financial Sector (Collection of Data) Act 2001, report consolidated figures for all related corporations within the same RFC category.
for other corporations, report consolidated figures for all related corporations within the same ANZSIC industry.
Specific instructions
Part A: New commitments for fixed loans – by purpose
The purpose of the loan is that specified by the borrower. Multi-purpose loans should be split and each component reported in the appropriate purpose classification. Where this is not possible the whole loan should be classified to the major purpose.
Fixed loans generally involve a commitment for a fixed period for a specific purpose and repayments over that fixed period which reduce the loan, but do not make further finance available.
Construction finance
1a. Erection of dwellings for rental/resale
Including:
only dwellings that will be occupied by persons other than the owner(s).
1d. Erection of industrial buildings
Including:
factories, automotive repair facilities etc.
1e. Erection of other non-residential buildings
Including:
hotels, buildings for educational, religious, health, entertainment and recreational purposes.
all structural and non-structural changes to existing buildings.
Excluding:
maintenance and repairs (include in Question 7); and
improvements which do not involve building work (include in Question 7).
Finance for the purchase of land and buildings
Include such things as are considered by law to be part of land (e.g. fencing).
2a. Purchase of dwellings for rental/resale
Including:
only dwellings that will be occupied by persons other than the owner(s).
2d. Purchase of industrial buildings
Including:
factories, automotive repair facilities etc.
2e. Purchase of non-residential buildings
Including:
hotels, buildings for educational, religious, health, entertainment and recreational purposes.
2f. Purchase of rural property
Including:
all property used for agricultural or pastoral purposes.
2g. Other land purchases
Including:
land not elsewhere included.
Wholesale finance
Wholesale finance is finance for the purchase of goods by wholesalers and retailers.
Including:
traders' stocks held under bailment or floorplan schemes.
Purchase of plant and equipment
4a. Motor vehicles
Including:
cars, station wagons, utilities, trucks, ambulances and passenger vehicles such as buses.
Excluding:
motorcycles, trailers, caravans, trains, boats and planes (include in ‘Other transport equipment’ below).
4b. Other transport equipment
Including:
motorcycles, trailers, caravans, trains, boats and planes.
4c. Other plant and equipment
Including:
construction and earthmoving equipments;
agricultural machinery; and
EDP and office equipment.
Refinancing
Including:
commitments where the principal purpose is to pay out (refinance) existing commercial loans.
Other
Including:
maintenance and repairs, and other improvements to property not involving building work.
Of the new commitments for fixed loans (Question 1 to 7), how much was debt participation in leveraged leases
The amount of debt participation in leveraged leases should be included in fixed loans (Question 1 to 7).
Part B: New commitments for revolving credit loans
Revolving credit facilities involve a commitment for a credit or borrowing limit and where the extent of the borrowings used at any one time may be for any amount up to the authorised limit. Repayments (other than of charges and interest) reduce the borrowings thereby increasing the amount of unused credit available. For example, overdrafts limits (mortgage backed overdrafts).
Cancellations of, and reductions in previously approved credit limits
Including:
the actual value of credit limits cancelled and the value by which existing credit limits were reduced during the month.
Excluding:
amounts used as balancing or adjustment items (such as adjustments between states). These should be reported in Question 15; and
repayments which reduce the used portion of the credit facility but not the total credit available. These should be excluded from the form altogether.
Balancing item (+/-)
If the previous month's 'total credit limits available' (Q12 last month) plus (+) 'total new limits approved' (Q11) minus (-) 'cancellations' (Q14) does not equal the current month's 'total credit limits available' (Q12), please provide the amount and a reason for this discrepancy.
Part C: New commitments – by industry
Industry is the business the client is mainly engaged in. The industry groupings are according to the Australian and New Zealand Standard Industrial Classification (ANZSIC). Include businesses that provide related or supporting services.
Agriculture, forestry and fishing
Including:
borrowers engaged in providing related services such as sheep shearing, aerial agricultural services, harvesting or forest protection.
Mining
Including:
borrowers engaged in mineral exploration, in the provision of services to mining or mineral exploration, and mining enterprises under development.
Manufacturing
Including:
borrowers engaged in manufacturing products, where 'manufacturing is related to the physical or chemical transformation of materials or components into new products'.
Construction
Including:
borrowers engaged in special trade construction such as plumbing, earthmoving and dredging, painting etc.
Wholesale trade
Including:
borrowers engaged in the resale of new or used goods to businesses or to institutional (including Government) users.
Retail trade
Including:
borrowers engaged in the resale of goods to final consumers for personal or household consumption; and
borrowers engaged in the reselling their own goods by auction.
Transport and storage
Including:
borrowers engaged in providing terminal and storage facilities; services related to transport; booking, travel, forwarding, materials handling etc.
Finance and insurance
Including:
borrowers engaged in the provision of finance, investments in financial assets and in providing services to lenders, borrowers and investors; and
borrowers engaged in the provision of insurance and superannuation, and in providing services to insurers.
Property and business services
Including:
borrowers engaged in valuing, purchasing, selling, renting, leasing or managing real estate;
borrowers engaged in developing or subdividing land;
borrowers engaged in scientific research and meteorological services;
borrowers engaged in providing technical, legal, accounting and other business services; and
borrowers engaged in renting and hiring equipment (except cars, trucks, and other transport equipment).
Cultural, recreational, personal and other services
Including:
borrowers engaged in providing entertainment, recreational, library, museum, accommodation, and catering services;
borrowers engaged in personal services such as laundries, hairdressing, photography, funerals;
private households employing staff; and
borrowers engaged in the provision of public order and safety services (such as police, prison and fire-brigade).
Government administration and defense
Including:
borrowers engaged in Federal, State and Local government enterprises engaged in public administration and regulatory activities;
judicial authorities and commissions; and
Army, Navy and Air Force establishments.
Health and community services
Including:
borrowers engaged in providing health, welfare and employment services; and
certain non-profit organisations such as religious organisations, business, professional and labour organisations, and political parties and associations formed to promote community or sectional aims.
Other industries
Including:
borrowers not elsewhere classified, such as those involved in the production or distribution of gas or electricity, the storage or supply of water, and the provision of education and communication services.
Total (sum of Questions 16 to 28)
The total of Fixed Loans in Question 30 should equal the total of Fixed Loans in Question 8. The total of Revolving Credit in Question 30 should equal the total of new Revolving Credit in Question 11.
Part D: Comments
Please provide comments
on any of the information you have supplied on this form;
on any questions which caused problems; and
if you would like to suggest improvements to this form.
Note on References to Accounting Standards
This Note is about references in these instructions to an accounting standard or accounting standards, e.g. where the instructions say that something must be done in accordance with a particular AASB or international accounting standard, or must be done in accordance with the accounting standards (however described) generally.
Where you see such a reference, you must read it as meaning the version of the accounting standard, or versions of the accounting standards, applying to reporting periods (within the meaning of the accounting standards) beginning immediately before 1 January 2005.
Accordingly, the new AASB standards for 2005 are not to be applied.
Similarly, a reference to principles or conventions (however described) governing an accounting procedure or treatment shall be taken to refer to principles or conventions applicable in relation to reporting periods (within the meaning of the accounting standards) that began immediately before 1 January 2005.
Subdivision Licensed ADI - Financial Sector (Collection of Data) determination No. 98 of 2005 - Reporting Standard ARS 391.0 (2005) - Commercial Finance - Licensed ADI | Zoe