Get a plain-English read of 4. Non-indexed interest bearing securiti
Turn the raw legal text into a practical explanation grounded in Financial Sector (Collection of Data) (reporting standard) determination No. 23 of 2007 - LRS 300.0 - Statement of Financial Position.
Non-indexed IBS are interest bearing securities that are not indexed (see item 5 below).
4.2 Held in Australia - directly as convertible notes (IBS exposure)
All IBS-related items such as convertible notes and other hybrid securities which, taking into account market conditions, have attributes that demonstrate exposure to IBS markets.
4.3 Held directly – outside Australia
This differentiation refers to the territory where the asset is held, as opposed to the territory where the life insurance business is carried on (see Column headings).
4.5 Look-through adjustment for assets held indirectly via unit trusts
Include look-through adjustment for Non-indexed IBS held indirectly via Listed Unit Trusts, Unlisted Unit Trusts or Controlled Unit Trusts.
4.6 Sub-total non-indexed IBS held effectively (unhedged positions) [derived item
This represents the effective holding in Non-indexed IBS after adjustment for look-through of trusts and prior to adjustment for hedging.
4.7 Hedging adjustments to or from non-indexed IBS
The hedging adjustment item is intended to translate the aggregate Non-indexed IBS balance to the effective post-derivatives position.
4.8 Total non-indexed IBS held effectively (hedged positions) [derived item]
This represents the effective exposure to Non-indexed IBS after adjustment for look-through of trusts and also after adjustment for hedging.
5 Indexed interest bearing securities (IBS):
Indexed IBS are interest bearing securities with a payment stream that increases by an indexation factor; the most common being the rate of inflation.
5.2 Held directly – outside Australia
This differentiation refers to the territory where the asset is held, as opposed to the territory where the life insurance business is carried on (see Column headings).
5.4 Look-through adjustment for assets held indirectly via unit trusts
Include look-through adjustment for Indexed IBS held indirectly via Listed Unit Trusts, Unlisted Unit Trusts or Controlled Unit Trusts.
5.5 Sub-total indexed IBS held effectively (unhedged positions) [derived item]
This represents the effective holding in Indexed IBS after adjustment for look-through of trusts and prior to adjustment for hedging.
5.6 Hedging adjustments to or from indexed IBS
The hedging adjustment item is intended to translate the aggregate Indexed IBS balance to the effective post-derivatives position.
5.7 Total indexed IBS held effectively (hedged positions) [derived item]
Division 4. Non-indexed interest bearing securiti - Financial Sector (Collection of Data) (reporting standard) determination No. 23 of 2007 - LRS 300.0 - Statement of Financial Position - 4. Non-indexed interest bearing securities (IBS): | Zoe
This represents the effective exposure to Indexed IBS after adjustment for look-through of trusts and also after adjustment for hedging.
6 Sub-total of non-indexed IBS and indexed IBS [derived item]:
Aggregate IBS balance. This is the internal sub-total of Non-indexed IBS and Indexed IBS, in terms of effective exposure.
7 Loans:
Include financial leases and mortgages. Please note that loans differ from interest bearing securities as usually the asset is not negotiable (i.e. able to be traded on a secondary market).
7.1 Held in Australia - directly as loans on policies
Loans on policies are loans (usually to a policy owner) that are secured by the surrender value of the policy.
7.3 Held in Australia - directly in public sector or as secured
Include all loans to the public sector (loans to National, State or Local Governments or government enterprises) and secured loans (loans secured by a charge over assets, including debentures) to other borrowers.
7.4 Held in Australia - directly as unsecured
Include loans (to private sector entities) that are not secured by a charge over assets.
7.5 Held directly - outside Australia
This differentiation refers to the territory where the asset is held, as opposed to the territory where the life insurance business is carried on (see Column headings).
7.7 Look-through adjustment for assets held indirectly via unit trusts
Include look-through adjustment for Loans held indirectly via Listed Unit Trusts, Unlisted Unit Trusts or Controlled Unit Trusts.
7.8 Sub-total loans held effectively (unhedged positions) [derived item]
This represents the effective holding in Loans after adjustment for look-through of trusts and prior to adjustment for hedging.
7.9 Hedging adjustments to or from loans
The hedging adjustment item is intended to translate the aggregate Loans balance to the effective post-derivatives position.
7.10 Total loans held effectively (hedged positions) [derived item]
This represents the effective exposure to Loans after adjustment for look-through of trusts and also after adjustment for hedging.
8 Sub-total of Debt Securities (IBS and Loans) [derived item]:
Aggregate Debt assets balance. This is the internal sub-total of IBS and Loans, in terms of effective exposure.
9 Other investment assets:
Other investment assets, for example, direct holdings of commodities such as gold.
9.2 Held directly – outside Australia
This differentiation refers to the territory where the asset is held, as opposed to the territory where the life insurance business is carried on (see Column headings).
9.4 Look-through adjustment for assets held indirectly via unit trusts
Include look-through adjustment for Other investment assets held indirectly via Listed Unit Trusts, Unlisted Unit Trusts or Controlled Unit Trusts.
9.5 Sub-total other investment assets held effectively (unhedged positions) [derived item]
This represents the effective holding in Other investment assets after adjustment for look-through of trusts and prior to adjustment for hedging.
9.6 Hedging adjustments to or from other investment assets
The hedging adjustment item is intended to translate the aggregate Other investment assets balance to the effective post-derivatives position.
9.7 Total other investment assets held effectively (hedged positions) [derived item]
This represents the effective exposure to Other investment assets after adjustment for look-through of trusts and also after adjustment for hedging.
Receivables:
Do not include accrued income from investment assets, which is to be included with the appropriate investment principal.
Include outstanding premiums (item 10.1), but not deferred acquisition cost arising in respect of policies, which are to be included as part of the calculation of Policy Liabilities.
Note that this treatment differs from the Australian Accounting Standards.
10.3 Held in Australia - as other receivables
Include the amount of any other receivables not categorised above.
Include sundry debtors and prepayments. Include accrued income for assets of the fund which are not traded securities, such as operating assets. Do not include accrued income from traded securities which is to be included with the principal amount.
10.4 Held outside Australia - all receivables
This differentiation refers to the territory where the asset is held, as opposed to the territory where the life insurance business is carried on (see Column headings).
Non-investment assets:
11.1 Held in Australia - as (owner-occupied) property, plant and equipment
Include owner-occupied property, furniture, equipment (excluding information technology), re-modelling costs to existing premises, and interest capitalised during the period of construction of buildings in accordance with AASB116 Property, Plant and Equipment. Report the net value after deducting accumulated depreciation from the total amount.
11.2 Held in Australia - as gross policy liabilities ceded under reinsurance
The sum of insurance liabilities, financial instrument liabilities and management services element liabilities ceded under reinsurance held in Australia. For reinsurance held outside Australia, see Item 11.5.
Outwards Reinsurance that meets the definition of an insurance contract consists of both a Reinsured Best Estimate Liability and the Value of Reinsured Profit Margins.
See comments under Item 16.
11.4 Held in Australia - as other assets
Include all other assets not specifically categorised above, including unreconciled suspense and clearing accounts with debit balances.
11.5 Held outside Australia - as gross policy liabilities ceded under reinsurance
The sum of insurance liabilities, financial instrument liabilities and management services element liabilities ceded under reinsurance held outside Australia. For reinsurance held in Australia, see Item 11.2.
Outwards Reinsurance that meets the definition of an insurance contract consists of both a Reinsured Best Estimate Liability and the Value of Reinsured Profit Margins.
See comments under Item 16.
11.6 Held outside Australia – other non-investment assets
This differentiation refers to the territory where the asset is held, as opposed to the territory where the life insurance business is carried on (see Column headings).
11.7 Look-through adjustment for owner-occupied property
This item is intended to translate the exposure to owner-occupied property from Item 11 to Item 2 (Investment Property).