Part Reporting Form MRF 300.0 - Financial Sector (Collection of Data) (reporting standard) determination No. 14 of 2007 - MRS 300.0 - Statement of Financial Position - Reporting Form MRF 300.0 | Zoe
Financial Sector (Collection of Data) (reporting standard) determination No. 14 of 2007 - MRS 300.0 - Statement of Financial Position
Reporting Form MRF 300.0Reporting Form MRF 300.0
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This form requires Medical Defence Organisations (MDOs) to report information about their assets, liability and capital. It should:
Include transactions of the MDO regardless of the residency status of the customer or the asset or liability.
Include any offshore operations or business of the MDO and will reflect investments in associated entities and joint ventures.
Not include controlled entities of the MDO.
Reporting Obligations
MDOs are required to report on a half-yearly basis (that is, six monthly intervals), based on their financial year.
For annual reporting, MDOs must lodge a form within four months of the end of their financial year. The information required on an annual basis must be reported as at the last day of the reporting period on a financial year-to-date basis of the MDO.
For half-yearly reporting (that is, the half-year that does not correspond with the MDO’s financial year end), MDOs must lodge a form within 20 business days of the end of that six month period.
Audit Requirements
This form must be subject to audit review and testing on an annual basis or more frequently if necessary to enable the auditor to form an opinion on the accuracy and reliability of the data. The auditor must provide a certificate to the MDO specifying whether, in their opinion, the data provided by the MDO are reliable. The MDO must submit this certificate to APRA on an annual basis.
The scope and nature of audit testing required is outlined in the applicable Auditing and Assurance Guidance Statement issued by the Auditing and Assurance Standards Board.
Definitions
Definitions for data reporting items required by this form have been provided where possible in the instructions under the section headed ‘Specific Instructions’
Basis of Preparation
Unit of Measurement
This form is to be prepared in thousands of Australian dollars (AUD). Amounts denominated in a currency other than Australian currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates (AASB 121)..
Assets
Fair value of assets
Assets other than land and building and other assets that are not normally relied on to meet Outstanding Claims Liabilities (OCL) or not generally of significance in assessing the performance of a MDO should be reported at fair value. Fair value has the same meaning as defined in AASB 132 Financial Instruments: Presentation (AASB 132).
Reinsurance
Where a reinsurance contract does not, despite its form, provide for the transfer of risk against loss or liability from the MDO to the reinsurer, it must not be accounted for as reinsurance, but as a form of financing. The premium paid by the ceding MDO must be recognised as an asset by the MDO and a liability by the reinsurer.
Liabilities
OCL is to be reported in accordance with MRF 210.0 Outstanding Claims Liabilities (MRF 210.0). All other liabilities are to be reported in accordance with applicable Australian Accounting Standards.
Netting
Unless otherwise specifically stated, MDOs can take advantage of netting agreements in relation to disclosure of data items in this form. MDOs are to comply with the prerequisite for netting outlined in Australian accounting standards notably AASB 7 Financial Instruments: Disclosures (AASB 7), AASB 139 Financial Instruments: Recognition and Measurement (AASB 139) and AASB 132.
Term to Maturity
Reference to term to maturity refers to residual term to maturity not original term to maturity.
Related party/entity
Related parties/entities are to be interpreted in accordance with AASB 124 Related Party Disclosures (AASB 124).
Parent
Parent entity is to be interpreted in accordance with AASB 127 Consolidated and Separate Financial Statements (AASB 127).
Subsidiaries
Subsidiaries are to be interpreted in accordance with AASB 127.
Associates
Associates is to be interpreted in accordance with AASB 128 Investments in Associates (AASB 128).
Joint ventures
Joint ventures is to be interpreted in accordance with AASB 131 Interests in Joint Ventures (AASB 131).
Specific Instructions
Current Assets
Current assets are to be interpreted in accordance with the meaning provided in AASB 101 Presentation of Financial Statements (AASB 101).
Cash and liquid assets
These items should be brought to account at the face value or the gross value of the outstanding balance where appropriate. Interest is taken to profit and loss when earned (refer to MRF 310.0 Statement of Financial Performance (MRF 310.0)).
1.1. Notes and coins
Include Australian and foreign currency notes and coins of the MDO. Notes and coins in transit between any offices of the MDO should be reported.
1.2. Money at short call
Include deposits available on demand (11am accounts, money market or 24-hour money), that are used by the MDO for daily liquidity/operations.
Do not include any deposits at call that are held as part of the MDO’s investments. These are to be disclosed as investments in MRF 140.0 Investment – Direct Interest Rate Holdings (MRF 140.0).
Do not include bank overdraft balances.
1.3. Securities purchased under agreements to resell
Treatment is to be consistent with International Accounting Standard 39. Where the transferee of the securities effectively receives a lenders rate of return (that is, the underlying risks and rewards of ownership of the underlying securities is not effectively transferred), these transactions are to be accounted for as collateralised borrowing activities (treating securities borrowing as on balance sheet exposures).
Under this method securities purchased under agreements to resell represents the receivable due from counterparties from whom the securities have been borrowed and with whom cash has been lodged. The MDO’s physical security holdings/portfolio recorded on the balance sheet are not affected (that is, increased or decreased by the securities subject to this agreement).
1.4. Total cash and liquid assets
Is the sum of all cash and liquid assets reporting items above.
Report the total of cash and liquid assets according to the counterparty grade of the obligor as detailed on the form. The grades are detailed in Attachment 1. Also report where cash and liquid assets are due from related entities.
Receivables
2.1. Total investment income receivable
Report the total of investment income that is receivable. Investment income receivable will include items such as interest, dividends, rental income, trusts distributions accrued but not yet received. Investment income should be reported in accordance with the grades specified. The grades are detailed in Attachment 1.
2.2 Recoveries other than reinsurance
Report recoveries other than reinsurance receivables. These include claims recoveries that may consist of recoveries from subrogation, salvage and other. Also include any recoveries due from Government under schemes and arrangements established in relation to medical indemnity matters.
2.2.1. Provision for doubtful debts
Report the value of recoveries other than reinsurance receivable where collection is assessed as doubtful.
2.2.2. Total net recoveries receivable
Is the value of recoveries other than reinsurance receivable, net of any associated provision for doubtful debts.
2.2.2.1 Total net amounts recoverable other than reinsurance recoveries receivable that relate to claims recognised in the calculation of the OCL
Of the total value reported in item 2.2.2, report the value that relates to claims that are recognised in the value reported for the OCL reported as a current liability in this form. Exclude recoveries that relate to claims that have been paid.
2.2.2.2 Total net recoveries receivable from related parties
Of the total value reported in item 2.2.2, report the value that is due from related parties.
2.2.3 - 2.2.7 Net recoveries receivable from counterparties
The net value of recoveries receivable is also to be reported according to the counterparty/asset rating grades of the counterparty from which the recoveries are receivable. The grades are detailed in Attachment 1.
2.3 Amounts recoverable from reinsurance contracts on outstanding claims
Report assets which derive from reinsurance activities, other than unpaid premiums, subject to where a legal right of set-off exists.
Include the amount due from reinsurers or retrocessionaires. Reinsurance recoverables on outstanding claims is the reinsured portion of the OCL to be recovered from reinsurers on settling the OCL. Measurement of the outstanding claims is to be in accordance with MRF 210.0. Accordingly, estimation of reinsurance recoveries relating to the OCL is to be estimated on a basis similar with the measurement of the claims liabilities to which it relates.
The amount recoverable is to be reported by counterparty grade. The grades are detailed at Attachment 1. Also report the value of any recoveries where it is determined that collection is considered doubtful (full or partial). (Refer items 2.3.1-2.3.13).
2.3.14. Total net reinsurance recoveries receivable from related parties
Include the amount of reinsurance recoveries from reinsurance contracts on outstanding claims that are receivable from related entities of the MDO.
2.3.15 Total net amounts recoverable on reinsurance contracts that relate to claims recognised in the calculation of the OCL
Of the total value reported in item 2.3.13, report the value of reinsurance recoveries that relates to claims that are recognised in the value reported for the OCL reported as a current liability in this form. Exclude reinsurance recoveries that relate to claims that have been paid.
2.4. Other reinsurance assets receivable
Report any other asset which relates to reinsurance, including deposits retained by reinsurers.
2.4.1 Total other reinsurance assets receivable from related parties
Report the amount of other reinsurance recoverables receivable due from related parties.
2.4.2 - 2.4.5 Total other reinsurance assets receivable from reinsurers with a counterparty
The total other reinsurance receivables are to be reported according to the counterparty grade of the reinsurers. The grades are detailed in Attachment 1.
2.5. GST receivable
Record the amount of GST that is receivable.
2.6. Subscription and other receivables
Report any other receivables not reported above. Also report by counterparty/asset grade. The grades are detailed in Attachment 1.
2.7. Total receivables
Is the total value of all receivables.
Investments (relates to the MRF 140 series of forms)
Report the value of investments that are reported in the forms listed below, which are designated as being current assets only. The non-current value of these investments are to be reported separately as non-current assets in this form.
MRF 140.0 Investments – Direct Interest Rate Holdings (MRF 140.0)
MRF 140.1 Investments – Direct Equity Holdings (MRF 140.1)
MRF 140.2 Investments – Direct Property Holdings (MRF 140.2)
MRF 140.3 Investments – Loans and Advances (MRF 140.3)
MRF 140.4 Investments – Assets Indirectly Held (MRF 140.4)
The aggregate value of investments reported as both current and non-current assets in this form must agree to the aggregate value of investments reported in the forms listed above.
Note: derivative instruments that are used to hedge investments that are included in the above forms are not to be reported in item 3. The current value of derivative instruments are to be separately reported in item number 5.2 of this form.
Any changes in the values at which such investments are measured must be recognised as revenues (or losses) in MRF 310.0 and MRF 310.3 Investment and Operating Income and Expense (MRF 310.3) in the reporting period in which the changes occur.
Deferred tax assets
4.1. Carried forward unused tax losses
Report all future income tax benefits arising out of tax losses in accordance with AASB 112 Income Taxes (AASB 112).
4.2. Other
Report all deferred tax assets other than that disclosed above.
4.3. Total tax assets
Is the sum of all tax assets.
Other Assets
5.1. Prepayments
Reflects payment for services not fully delivered (e.g. payments for subscriptions, rental, and interest expense).
5.2. Derivative financial instruments
Include all current asset derivatives consistent with the classification and measurement basis used for derivatives in accordance with AASB 7, AASB 132 and AASB 139.
5.3. Other
Report the value of any other asset that has not been reported elsewhere.
5.4. Total other assets
The sum of all other assets.
Total other assets are also to be reported in accordance with the rating grades. The grades are detailed at Attachment 1.
6. Total Current Assets
The sum of all current asset categories.
Non Current Assets
Non current assets are to be interpreted in accordance with the meaning provided in AASB 101.
Receivables
7.1 Recoveries other than reinsurance
Report recoveries other than reinsurance receivables. These include claims recoveries that may consist of recoveries from subrogation, salvage and other. Also include any recoveries due from Government under schemes and arrangements established in relation to medical indemnity matters.
7.1.1. Provision for doubtful debts
Report the value of recoveries other than reinsurance receivable where collection is assessed as doubtful.
7.1.2. Net recoveries other than reinsurance receivable
Is the value of recoveries other than reinsurance receivable, net of any associated provision for doubtful debts.
7.1.2.1 Total net amounts recoverable other than reinsurance recoveries receivable that relate to claims recognised in the calculation of the OCL
Of the total value reported in item 7.1.2, report the value that relates to claims that are recognised in the value reported for the OCL reported as a current liability in this form. Exclude recoveries that relate to claims that have been paid.
7.1.2.2 Total net recoveries receivable from related parties
Of the total value reported in item 7.1.2, report the value that is due from related parties.
7.1.3 - 7.1.7 Net recoveries receivable from counterparties
The net value of recoveries receivable is also to be reported according to the counterparty/asset rating grades of the counterparty from which the recoveries are receivable. The grades are detailed in Attachment 1.
7.2. Amounts recoverable from reinsurance contracts on outstanding claims
Report assets which derive from reinsurance activities, other than unpaid premiums, subject to where a legal right of set-off exists.
Include the amount due from reinsurers or retrocessionaires. Reinsurance recoverables on outstanding claims is the reinsured portion of the OCL to be recovered from reinsurers on settling the OCL. Measurement of the outstanding claims is to be in accordance with MRF 210.0. Accordingly, estimation of reinsurance recoveries relating to the OCL is to be estimated on a basis similar with the measurement of the claims liabilities to which it relates.
7.2.1 – 7.2.13 The amount recoverable is to be reported by counterparty grade. The grades are detailed at Attachment 1. Also report the value of any recoveries where it is determined that collection is considered doubtful (full or partial).
7.2.14. Total net reinsurance recoveries receivable from related parties
Include the amount of reinsurance recoveries from reinsurance contracts on outstanding claims that are receivable from related entities of the MDO.
7.2.15 Total net amounts recoverable on reinsurance contracts that relate to claims recognised in the calculation of the OCL
Of the total value reported in item 7.2.13, report the value of reinsurance recoveries that relates to claims that are recognised in the value reported for the OCL reported as a non current liability in this form. Exclude reinsurance recoveries that relate to claims that have been paid.
7.3. Other reinsurance assets
Report any other asset which relates to reinsurance, including deposits retained by reinsurers.
7.3.1.1. Total other reinsurance assets receivable from related parties
Report the amount of other reinsurance recoverables receivable due from related parties.
7.3.2 - 7.3.5 Total other reinsurance assets receivable from reinsurers with a counterparty
The total other reinsurance receivables reported in 7.3.1 are to be reported according to the counterparty grade of the reinsurers. The grades are detailed in Attachment 1.
7.4 Other receivables
Report any other receivables not reported above. Also report by counterparty/asset grade. The grades are detailed in Attachment 1.
7.5. Total receivables
Is the total value of all receivables.
Investments (relates to the MRF 140 series of forms)
Report the value of investments that are reported in the forms listed below, which are designated as being non current assets only. The current value of these investments are to be reported separately as current assets in this form.
MRF 140.0
MRF 140.1
MRF 140.2
MRF 140.3
MRF 140.4
The aggregate value of investments reported as both current and non-current assets in this form must agree to the aggregate value of investments reported in the forms listed above.
Note: derivative instruments that are used to hedge investments that are included in the above forms are not to be reported in item 8. The non current value of derivative instruments are to be separately reported in item number 22.1 of this form.
Any changes in the values at which such investments are measured must be recognised as revenues (or losses) in MRF 310.0 and MRF 310.3 in the reporting period in which the changes occur.
Other investments
Report all other investments that relate to strategic investments/acquisitions of the MDO in accordance with the categories detailed on the form.
In addition, total other assets should also be reported in accordance with the following categories.
9.6.1. Listed equity instruments or units in listed trusts
Of the aggregate value of other investments, report the component that constitutes holdings of, or investments in, listed equity instruments or units in listed trusts.
9.6.2. Unlisted equity instruments or units in unlisted trusts
Of the aggregate value of other investments, report the component that constitutes holdings of, or investments in, unlisted equity instruments or units in unlisted trusts.
9.6.3. Other
Of the aggregate value of other investments, report the component that constitutes investments other than holdings of listed or unlisted equity instruments or units or debt securities.
9.6.4. Total other investments, which are a general insurance entity/business
Report the value of other investments which are investments in a general insurance entity.
Plant and equipment
The reporting of all fixed asset items should be in accordance with applicable Australian Accounting Standards. Do not include property acquired or held available for sale. These assets are to be disclosed as ‘investments’ in this form and reported individually in MRF 140.2.
10.1. Plant and equipment
This includes motor vehicles, office furniture and equipment, including computer equipment and software. Do not include holdings of land and buildings, even if these are for the use and occupation of the MDO.
10.2. Accumulated depreciation/amortisation
Report total depreciation and amortisation for plant and equipment here.
10.3. Total plant and equipment net of depreciation/amortisation
Deduct Accumulated depreciation/amortisation from the gross values for plant and equipment.
Intangible assets
Classification of assets as intangible assets must be in accordance with AASB 138 Intangible Assets (AASB 138).
11.1. Goodwill
Do not include goodwill associated with the acquisition of controlled entities here. Record the value of goodwill associated with the acquisition of assets, other than a controlled entity/subsidiary. This value should be recognised and measured in accordance with AASB 3 Business Combinations (AASB 3), AASB 138 and AASB 127.
AASB 3 provides that goodwill represents the future benefits from unidentifiable assets. Only goodwill which is purchased by the entity can be recognised, internally generated goodwill by the entity must not be recognised. Purchased goodwill must be measured as the excess of the cost of acquisition incurred by the MDO over the fair value of the identifiable net assets acquired.
11.2. Accumulated Impairment
Include the total amount of impairment of goodwill over the period from the date of acquisition to the end of the reporting period.
11.3. Identifiable intangible assets
Record the value of identifiable intangible assets other than goodwill reported in 11.1 or 11.2.
11.4. Accumulated amortisation/impairment
Include the total amount of amortisation/impairment of identifiable intangible assets over the period from the date of acquisition to the end of the reporting period.
11.5. Intangible assets after amortisation/impairment
The sum of all intangible assets items above.
Deferred tax assets
12.1. Attributable to carried forward tax losses
Report all deferred tax assets benefits arising out of tax losses in accordance with AASB 112.
12.2. Other
Report all deferred tax assets other than that disclosed above.
12.3. Total deferred tax assets
Is the sum of all deferred tax assets.
13. Other Assets
13.1. Derivative financial instruments
Include all non current asset derivatives consistent with the classification and measurement basis used for derivatives in accordance with AASB 7, AASB 132 and AASB 139.
13.2 Other
Report the value of any other asset that has not been disclosed above.
Total Non Current Assets
Report the sum of all non current assets
15. Total Assets
The sum of all current assets and total non-current assets.
Current Liabilities
Current liabilities are to be interpreted in accordance with the meaning provided in AASB 101.
Creditors and accruals
16.1. GST Payable
Report the value of GST that is payable.
16.2. Creditors and accruals
Report the total of creditors and accruals, including account payables. Do not include overdrafts here, these should be disclosed as borrowings.
16.3. Total creditors and accruals
16.3.1. Total creditors and accruals payable to related entities
Include the total of creditors and accruals that are payable to related entities of the MDO.
Amounts due on reinsurance contracts
Report the net amount payable by the MDO to reinsurers or retrocessionaires where a legal right of set-off exists. This reflects the current working balance due for settlement. Include premiums payable but not yet due for payment under the terms of the reinsurance contracts and deposits withheld from reinsurers. Include items such as the reinsurer’s portion of recoveries and salvage and commissions due to reinsurers.
17.1. Amounts due on reinsurance contracts which are payable to related entities
Include the total of amounts due on reinsurance contracts that are payable to related entities of the MDO.
Outstanding Claims Liabilities (OCL)
This is the MDO’s liability for outstanding claims and recognises the potential cost to the MDO of settling claims which it has incurred at the reporting date but which have not been finalised. The amount reported is to be calculated in accordance with MRF 210.0.
Note: the amount of total OCL reported in this form can be greater than or equal to the amount of OCL reported MRF 210.0, however it must not be less than this amount.
Any excess of OCL provided for above that amount required by MRF 210.0 is able to be added back to Tier 1 capital in MRF 120.0 Capital Base (MRF 120.0).
18.1. Total OCL which is associated with claims/settlements other than the Australian currency.
Report the amount of claims that have been recognised in the OCL that are ultimately going to be settled or paid in a currency other than the Australian currency.
Borrowings
19.1. Securities sold under agreements to repurchase
Treatment is to be consistent with International Accounting Standard 39. Where the transferee of the securities effectively receives a lenders rate of return (i.e. the underlying risks and rewards of ownership of the underlying securities is not effectively transferred), these transactions are to be accounted for as collateralised borrowing activities (treating securities borrowing as on balance sheet exposures).
Under this method, securities sold under agreements to repurchase represents the payable due to counterparties with whom the securities have been transferred (lent) and from whom cash has been lodged. The MDO’s physical security holdings/portfolio recorded on the balance sheet are not affected (i.e. decreased by the securities subject to this agreement).
19.2. Finance lease liability
Report the value of finance lease liability to be payable less than 12 months.
19.3. Overdraft
Report any bank overdraft taken out by the MDO and any bank trading account credit balances.
Report all borrowings by the MDO in the form of commercial paper, promissory notes and other forms of securities issued by the MDO. Commercial paper or promissory notes are short-term debt securities usually issued with an original term to maturity of less than 180 days.
Include all notes/securities issued with a residual term to maturity of 12 months or less. Commercial paper or promissory notes with a residual maturity greater than 12 months should be reported as a non-current liability.
19.5. Term loans
19.5.1. Term loans with variable interest rate
Report all borrowings by the MDO in the form of variable interest rate short-term loans. A loan is considered to be short-term if its residual term to maturity is 12 months or less.
19.5.2. Term loans with fixed interest rate
Report all borrowings by the MDO in the form of fixed interest rate short-term loans. A loan is considered to be short-term if its residual term to maturity is of 12 months or less.
19.6. Total borrowings
Is the sum of all borrowings.
Total borrowings must also be reported in accordance with the categories detailed on the form.
Income tax liability
20.1. Provision for income tax
This is defined, measured and recognised in accordance with AASB 112.
20.2. Provision for deferred income tax
This is defined, measured and recognised in accordance with AASB 112.
20.3. Total income tax liability
Is the sum of all income tax liability items.
Provisions
21.1. Employee entitlements
This includes provisions for long service leave, annual leave, staff housing loan benefits, health fund subsidy and other employee entitlements. The value of employee entitlements should be measured and recognised in accordance with the requirements of AASB 119 Employee Benefits (AASB 119).
21.2. Restructuring costs
Report all provisions raised for the restructuring of a MDO, including: severance, termination and redundancy payments and Integration costs.
21.3. Other
Report all other provisions not reported above.
21.4. Total provisions
Is the sum of all provisions.
22. Other liabilities
22.1. Derivative financial instruments
Include all non current asset derivatives consistent with the classification and measurement basis used for derivatives in accordance with AASB 7, AASB 132 and AASB 139.
22.2. Other liabilities
Report other current liabilities that are not reported elsewhere on the form.
22.3. Total other liabilities
Is the sum of all other liabilities.
Total current liabilities
Is the sum of all current liabilities.
Non-Current Liabilities
Non current liabilities are to be interpreted in accordance with the meaning provided in AASB 101.
Report below items 24 -29 as non-current liabilities on a non-current basis using the instructions provided for under ‘current liabilities’:
Creditors
Amounts due on reinsurance contracts
OCL
Borrowings
28. Income tax liability
Provisions
30. Loan capital and hybrid securities
Report the value of all loan capital and hybrid securities that have been issued by the MDO and have a residual term to maturity of more than one year. Classification is to be consistent with AASB 132.
30.1. Loan capital
Loan capital may include subordinated loans of a residual maturity of more than one year.
30.2. Hybrid securities
Hybrid securities may include converting preference shares and convertible notes.
Other liabilities
31.1. Derivative financial instruments
Include all derivatives consistent with the classification and measurement basis used for derivatives by institutions in accordance with AASB 7, AASB 132 and AASB 139.
31.2. Other liabilities
Record other non-current liabilities that are not able to be classified into the specific categories listed on the form.
31.3. Total Other Liabilities
This is automatically calculated by the form and represents the total of ‘Derivative financial instruments’ and ‘Other liabilities’.
32. Total Non-Current Liabilities
This is automatically calculated by the form and represents the sum of all non-current liability items.
Total liabilities
Net assets
Net assets represented by:
Paid-up ordinary shares
Include paid-up ordinary share capital on issue.
Reserves
36.1. General reserve
This is derived from revenue profits and is mostly available for dividend payment.
36.2. Capital profits reserve
A capital profits reserve represents the realised value of revaluations associated with an asset or class of assets that have been disposed of. These assets have been subject to the fair value basis of measurement and revaluations accounted for in accordance with accounting standard AASB 116 Property, Plant and Equipment (AASB 116). Due to the disposal of these assets, the balance of the asset revaluation reserve associated with these assets has been transferred to a capital profits reserve.
36.3. Asset revaluation reserve
Note, if the MDO does not use the cost method to value asset other than those reported in the MRF 140 series of forms, then these items are not applicable to the MDO. Only complete these if the MDO uses these accounts for its financial reporting.
36.3.1. Intangibles
Include balance of the asset revaluation reserve relating to the revaluation of intangible assets.
36.3.2. Investment in controlled entities
Include the balance of the asset revaluation reserve relating to the revaluation of investment in subsidiaries.
36.3.3. Investments in associates/share of associates
Include the balance of the asset revaluation reserve relating to the revaluation of investments in associates
36.3.4. Other
Asset revaluation reserve relating to the revaluation of other assets.
36.3.5. Total asset revaluation reserve
Sum of the components of the asset revaluation reserve.
36.4. Foreign currency translation reserve
Include the exchange rate differences arising on translation of assets and liabilities where those assets and liabilities are not valued at fair value.
36.5. Other reserves
Include all reserves not separately identified above. Report dividend reinvestment plan reserve in this reporting item.
36.6. Total reserves
Sum the reporting items listed under “Reserves”.
Retained profits
37.1. Retained profits or accumulated losses at the end of the period
Represents the sum of opening balance of retained profits or accumulated losses at the beginning of the period plus current profit or loss after tax and extraordinary items for the reporting period and after any transfers to or from reserves.
Total net assets of the MDO
This represents the sum of “Paid-up ordinary shares”, “Total Reserves” and “Retained profits”
ATTACHMENT 1: Counterparty Grades
Grade
Standard & Poor’s
Moody’s
AM Best
Fitch
1
AAA
Aaa
A++
AAA
2
AA+AAAA-
Aa1Aa2Aa3
A+
AA+AAAA-
3
A+AA-
A1A2A3
AA-
A+AA-
4
BBB+BBBBBB-
Baa1Baa2Baa3
B++B+
BBB+BBBBBB-
5
BB+ or below
Ba1 or below
B or below
BB+ or below
Unrated assets or exposures should be classified as Grade 4.
MDOs should, in general, use the same rating agency for determining counterparty gradings. Where the MDO has counterparties with multiple ratings from two or more of the rating agencies in the table above, the MDO should consistently choose the ratings of a single agency whenever possible. For example, the MDO may have a number of counterparties that are rated by Standard & Poor’s and AM Best. In this case, the MDO should choose a single agency that will be consistently used whenever the individual ratings conflict.