Reporting entitiesReporting entities

Reporting entities

GRF 131.0_G Off Balance Sheet Exposure Risk Charge (Level 2 Insurance Group) is to be completed by the parent entity of a Level 2 insurance group as defined under GPS 001.

Consolidation at Level 2 should cover the Level 2 insurance group as defined under GPS 001.

In the context of this form, that means that only off-balance sheet exposures with counterparties outside of the Level 2 insurance group will incur a risk charge. Where, for instance, one group company guarantees the obligations of another group company within the same region (Australia or International), those guarantees are not to be reported here as they are eliminated on consolidation. Where, for instance, an intra-group guarantee exists between regions, these guarantees are to be reported in this form, and then an inter-region elimination item is to be reported.

Unit of measurement

This form is to be presented in Australian dollars (AUD), rounded to thousands of dollars, with no decimal place.

Amounts denominated in foreign currency are to be converted to AUD in accordance with Australian accounting standards.

Transactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with Australian accounting standards.

Materiality

GRF 131.0_G Off Balance Sheet Exposure Risk Charge (Level 2 Insurance Group) is to be prepared based on the concept of materiality as applied in Australian accounting standards subject to APRA’s discretion. APRA’s discretion is likely to apply in instances where the application of materiality criteria is not suitable for prudential reporting purposes.

Reporting period

Level 2 insurance groups are required to report the information in the reporting form. This information is to be reported on three occasions in a Level 2 insurance group’s financial year. A Level 2 insurance group is required to submit:

• semi-annual return which is to be completed in respect of each half year from the start of the financial year of the Level 2 insurance group; and
• an audited annual return which will be based on a limited assurance review by the Group Auditor (see Audit requirements).

The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the Level 2 insurance group.