Financial Sector (Collection of Data) (reporting standard) determination No. 2 of 2006 - Reporting Standard ARS 112.1 - Capital Adequacy - On Balance Sheet Risk Weighting Schedule
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Scope
The risk-weighting process used for measuring an ADI’s (and the group’s) on balance sheet credit exposures covers all on balance sheet assets held by the ADI (and the group), except the following items which are specifically excluded:
(a) those assets or investments which are required to be deducted from Tier 1 or total capital as per Prudential Standard APS 111 Capital Adequacy: Measurement of Capital (APS 111);
(b) all debt and equity securities held in the trading book (the associated risk-weighted exposures are determined in accordance with Prudential Standard APS 113 Capital Adequacy: Market Risk (APS 113) and the accompanying Guidance Notes);
(c) all on balance sheet positions in commodities (the associated risk-weighted exposures are determined in accordance with APS 113 and the accompanying Guidance Notes); and
(d) on balance sheet unrealised gains on market related off balance sheet transactions (which are to be included in the calculation of an ADI’s (and the group’s) total risk-weighted off balance sheet credit exposures – refer Guidance Note AGN 112.2 Risk-Weighted Off-Balance Sheet Credit Exposures).