Financial Sector (Collection of Data) (reporting standard) determination No. 27 of 2006 - Reporting Standard ARS 322.0 - Statement of Financial Position (Consolidated)
Consolidated ADI groupConsolidated ADI group
Start here
Get a plain-English read of Consolidated ADI group
Turn the raw legal text into a practical explanation grounded in Financial Sector (Collection of Data) (reporting standard) determination No. 27 of 2006 - Reporting Standard ARS 322.0 - Statement of Financial Position (Consolidated).
Consolidated ADI group
This refers to the global operations of the ADI and all its controlled entities (where relevant), consolidated in accordance with Australian accounting standards (AASB 127 and AASB 3).
‘Controlled entity’, ‘parent entity’. These terms are defined in accordance with AASB 127 and AASB 3.
Exclude from the accounting consolidated group special purpose vehicles (SPVs) whose assets have satisfied the clean sale requirements set down in AGN 120.3 Purchase and Supply of Assets (including Securities issued by Special Purpose Vehicles (SPVs) (AGN 120.3), (refer Securitisation Deconsolidation Principle below).
Securitisation deconsolidation principle
Except where stated otherwise on this form, reporting entities must treat any securitisation program special purpose vehicles in which the ADI (or a member of its consolidated group) participates in accordance with APRA’s clean sale and separation requirements as non-consolidated independent third parties. As a result, for reporting purposes all assets, liabilities, revenues and expenses of these SPVs must be excluded from the ADI’s reported amounts. Where relevant, report on this form any exposure to or other transaction between the ADI and any such SPV as if such transaction was conducted with an independent third party, regardless of whether the SPV or its assets is consolidated for accounting purposes.
APRA's clean sale and separation requirements are set out in APS 120 Funds Management and Securitisation and related Guidance Notes AGN 120.3 Purchase and Supply of Assets (including Securities Issued by SPVs) and AGN 120.1 Disclosure and Separation. Whenever the clean sale and separation requirements are not met, all the assets, liabilities, revenues and expenses of the SPV are to be consolidated with the ADI’s reported amounts.
Note: ADIs should consult APRA in case of doubt as to whether a subsidiary or controlled entity that engaged in non-financial operations should be consolidated at Level 2 for capital adequacy purposes.