Financial Sector (Collection of Data) (reporting standard) determination No. 27 of 2019
Section B: LiabilitiesSection B: Liabilities
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Only include amounts due to recognised clearing houses such as the ASXCH and SFXCH in Australia or overseas. Include margin calls from stock and derivative exchanges which are payable.
2. Due to financial institutions
Include:
settlement account balances – Austraclear, and RITS balances with ADIs and other financial institutions;
amounts owing to ADIs and other financial institutions in relation to the payments system;
items in the course of collection – due to ADIs and other financial institutions in relation to the payments system;
amounts due in relation to an involvement in an overseas payments system;
securities purchased not delivered/security settlements – record payables for unsettled purchases of securities only with financial institutions here. This item only arises if securities are recorded on a settlement date basis as opposed to a trade date basis; and
Vostro balances from ADIs and other financial institutions.
This reporting item should be brought to account at the gross value of the outstanding balance. Interest is taken to profit and loss when earned.
2.1 Due to RBA or central banks
Include:
settlement account balances due to the RBA. Funds borrowed from the RBA should also be reported in this data item.
2.2 Due to ADIs
Include:
settlement account balances due to ADIs.
2.3 Due to RFCs
Include:
settlement account balances due to RFCs.
2.4 Due to other financial institutions
Include:
settlement account balances due to other financial institutions.
2.5 Total due to financial institutions
Sum the reporting items for amounts due to Australian resident financial institutions.
3. Acceptances
Acceptances comprise undertakings by an ADI to pay bills of exchange drawn on customers. The ADI expects most acceptances to be presented before being reimbursed by the customers. These bills of exchange are not held as part of the ADI’s asset portfolio. Acceptances are accounted for and disclosed as a liability with a corresponding contra asset. The contra asset is recognised to reflect the ADI’s claim against each drawer of the bills of exchange.
Bills of exchange that have been accepted and held in an ADI’s asset portfolio should be excluded from this item. Include these holdings of own acceptances under either Securities held for trading or Securities not held for trading.
Part Section B: Liabilities - Financial Sector (Collection of Data) (reporting standard) determination No. 27 of 2019 - Section B: Liabilities | Zoe
Netting is allowed in accordance with the requirements specified in the Australian accounting standards (i.e. only if there is a legal right to set off and there is an intention to settle on a net basis, or realise the assets and settle the liability simultaneously).
Acceptances generate fee income that is taken to profit and loss when earned.
Accounts which provide checking facilities of any kind. This account can either be interest bearing or non-interest bearing. This account may be linked with other accounts offering transaction or non-transaction facilities. Do not include accounts which have a cheque facility but a cheque book has never been issued.
Other payment methods
Accounts from which payments may be made to third parties – Automated Teller Machines (ATMs), debit card or another electronic device.
All deposits are to be reported net off any setoffs (only if in accordance with AASB 132, AASB 7 and AASB 9).
Exclude from this classification:
negotiable and transferable certificates of deposit;
subordinated debt issues;
subordinated loans;
loans due to the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity;
securities sold under agreements to repurchase;
treasury related short-term borrowings from other ADIs; and
The term households/retail is to be interpreted in the same way as for loans and advances.
4.1.2.2 Deposits: Call/on demand: Non-transaction accounts – Other
Include:
all other non-transaction deposit call accounts from other parties that are not classified as being from households.
4.2 Term deposits
An account in which money has be placed for a fixed period for a stated interest rate.
4.2.1 Term deposits – Households/retail
The term households/retail is to be interpreted in the same way as for loans and advances.
4.2.2 Term deposits – Other
Include:
all other term deposit accounts from other parties that are not classified as being from households.
4.3 Deposits: Certificates of deposit
Certificates of deposit are negotiable bearer debt securities. They are issued at a discount to the face value and do not require endorsement when sold.
4.4 Deposits: Retirement saving accounts (RSAs)
RSAs are low risk/low return capital guaranteed products subject to the same restrictions as other superannuation products. Only an approved deposit taking institution, life insurance company or a prescribed financial institution can be approved as an RSA. Some superannuation funds offer RSA lookalike products, but RSA's themselves are specifically approved non-trustee institutions.
4.5 Deposits: Other
Record in aggregate all other forms of deposits that are not included in the deposit account classifications noted above.
4.6 Total deposits
Sum the total of ‘Transaction’, ‘Non-transaction’, ‘Term deposits’, ‘Certificates of deposit’, ‘Retirement saving accounts’ and ‘Other’.
5. Other borrowings
Include:
securities sold under agreements to repurchase;
subordinated loans with a residual maturity of 12 months or less;
short-term loans due to the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity;
treasury related short-term borrowings from other ADIs;
promissory notes with a residual maturity of 12 months or less;
commercial paper with a residual maturity of 12 months or less; and
short-term debt securities from the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity.
Exclude:
negotiable and transferable certificates of deposits;
subordinated loans, promissory notes, commercial paper with a residual maturity greater than 12 months; and
deposits.
5.1 Securities sold under agreements to repurchase
These transactions are to be recorded consistent with Australian accounting standard AASB 9. Where the transferee of the stock effectively receives a lender’s rate of return (i.e. the underlying risks and rewards of ownership of the underlying stock is not effectively transferred), these transactions are to be accounted for as collateralised lending activities (treating stock lending as on balance sheet exposures). Securities sold under agreements to repurchase, represents the payable due to counterparties with whom the stock has been lent and from whom cash has been lodged. Under this method of accounting the bank’s physical stock positions recorded on the balance sheet in either Securities held for trading or Securities not held for trading sections is not affected.
5.2 Promissory notes/commercial paper
Report all borrowings by the reporting entity in the form of commercial paper or promissory notes. 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 commercial paper or promissory notes 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 ‘long-term debt’.
5.3 Other short-term debt securities
Report all borrowings by the reporting entity in the form of short-term debt securities, other than certificates of deposits and promissory notes/commercial paper (identified above).
Include:
all debt securities issued with a residual term to maturity of 12 months or less. Other debt securities with a residual maturity greater than 12 months should be reported as ‘long-term debt’.
5.4.1 Short-term loans from ADIs - Variable
Report all borrowings by the reporting entity in the form of variable interest rate short-term loans from ADIs.
A loan is considered to be short-term if its residual term to maturity is of 12 months or less.
Settlement account balances due to other banks should be separately identified and reported as ‘Due to financial institutions: ADIs’.
5.4.2 Short-term loans from ADIs - Fixed
Report all borrowings by the reporting entity in the form of fixed interest rate short-term loans from ADIs.
A loan is considered to be short-term if its residual term to maturity is of 12 months or less.
Settlement account balances due to other banks should be separately identified and reported as ‘Due to financial institutions: ADIs’.
5.5.1 Short-term loans: Other - Variable
Report all borrowings by the reporting entity in the form of variable interest rate short-term loans from counterparties other than ADIs.
A loan is considered to be short-term if its residual term to maturity is of 12 months or less.
Amounts due to clearing houses should be separately identified and reported as ‘Due to clearing houses’. Settlement account balances should be separately identified and reported as ‘Due to financial institutions’.
5.5.2 Short-term loans: Other - Fixed
Report all borrowings by the reporting entity in the form of fixed interest rate short-term loans from counterparties other than ADIs.
A loan is considered to be short-term if its residual term to maturity is of 12 months or less.
Amounts due to clearing houses should be separately identified and reported as ‘Due to clearing houses’. Settlement account balances should be separately identified and reported as ‘Due to financial institutions’.
5.6 Total other borrowings
Sum the component parts listed under ‘Other borrowings’.
6. Income tax liability
Recognition of current and deferred tax liabilities are to be made in accordance with AASB 112. In addition, this should relate to Australian business operations.
6.3 Total income tax liability
Sum the income tax liability items relating to Australian business operations.
7. Provisions
7.1 Dividends
A provision for dividends is the allowance that the reporting entity has made in terms of the obligation for declared dividends.
7.2 Employee entitlements
Include:
provisions for long service leave, annual leave, staff housing loan benefits, health fund subsidy and other employee entitlements. This should be reported in accordance with the requirements of AASB 119.
7.3 Non-lending losses
Include:
provision for self-insurance;
frauds;
litigation, fraud detection and prevention;
forgeries; and
non-transferred insurance risks.
7.4 Restructuring costs
Report all provisions raised for the restructuring of an organisation.
Include:
severance, termination and redundancy payments; and
integration costs.
7.5 Other provisions
Report all other provisions not identified above.
Include:
specific provision for off-balance sheet credit related commitments;
leased premises surplus to current requirements; and
provision for subsidiary integration costs.
7.6 Total provisions
Sum all the ‘Provisions’ reporting items.
8. Bonds, notes and long-term borrowings
Bonds, notes and long-term borrowings have a residual term to maturity of more than one year. This includes loans and debt securities.
8.1 Debt securities
Report debt securities that have been issued and have a residual term to maturity of more than one year. Measurement is to be consistent with Australian accounting standards.
As a guide include:
bonds;
debentures;
unsecured notes;
fixed-interest securities;
medium-term notes;
inflation-indexed bonds;
floating-rate notes;
other floating-rate debt securities;
mortgage-backed bonds;
asset-backed bonds;
Euro notes;
Euro bonds;
Euro medium-term notes;
non-participating preference shares (a special type where the holder has no entitlement to a share in the residual value on dissolution of the issuing company); and
subordinated bonds and notes.
As a guide exclude:
hybrid securities;
trading derivatives;
convertible notes prior to conversion;
negotiable and transferable certificates of deposit;
subordinated debt issues with a residual maturity of 12 months or less;
promissory notes with a residual maturity of 12 months or less;
commercial paper with a residual maturity of 12 months or less; and
short-term debt securities from the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity.
8.2 Loans
Report the face value of all loans and borrowings that have a residual term to maturity of more than one year.
Include:
secured and unsecured borrowings;
financial lease agreements;
term loans;
mortgages;
commercial loans;
equity participation in leveraged leases;
redeemable preference share finance; and
loans due to the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity.
Exclude:
loan capital (e.g. subordinated loans);
short-term loans due to the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity; and
treasury related short-term borrowings from other banks.
8.2.1 Long-term loans – Variable rate
Report the face value of all variable interest rate loans and borrowings that have a residual term to maturity of more than one year.
8.2.2 Long-term loans – Fixed rate
Report the face value of all fixed interest rate loans and borrowings that have a residual term to maturity of more than one year.
8.3 Total bonds, notes and long-term borrowings
Sum the total face value of all ‘Bonds, notes and long-term borrowings’.
9. Creditors and other liabilities
9.1 - 9.2 Defined benefit liabilities
Include:
defined benefit liabilities i.e. deficit, consistent with the classification and measurement basis used in AASB 119.
Distinctions between current and non-current defined benefit liabilities are to be made in accordance with AASB 101 Presentation of Financial Statements (AASB 101).
9.3 Interest payable
Include:
interest accrued for but not yet paid.
9.4 Unearned interest
Include:
interest received but not yet earned e.g. interest received in advance on fixed interest loan portfolio.
9.5 Derivative financial instruments
Include:
all derivatives consistent with the classification and measurement basis used for derivatives by institutions in accordance with AASB 132, AASB 7 and AASB 9. This applies to trading and banking book derivatives. Derivative financial instruments in existence prior to adoption of IFRS are to be reported in accordance with AASB 1.
9.6 Items in suspense
Report suspense or unreconciled/unidentified transactions/balances here that are in a liability position. A list of examples is not provided as these may vary between institutions. It is recommended that the institutions internal procedures be adopted regarding the recording and reporting of these types of balances.
9.7 Due to merchants
9.8 Liabilities included in disposal groups classified as held for sale
Include:
liabilities included in disposal groups classified as held for sale consistent with AASB 5.
9.9 Share capital repayable on demand
Include:
members’ shares in co-operatives classified as liabilities consistent with AASB 132 and AASB 7.
9.10 Other
Include:
other liabilities not separately identified above. E.g. unearned fees and commission received in advance but not recognised as earned for accounting purposes.
Exclude:
deposits, loans and other liabilities to related parties of the reporting entity, including liabilities to the parent entity, controlled entities, associated entities, joint venture entities and other branches under the same parent entity. These liabilities should be reported to the relevant item above.
9.11 Total creditors and other liabilities
Sum the reporting items listed under ‘Creditors and other liabilities’.
10. Loan capital and hybrid securities
Report the face value of all loan capital and hybrid securities that have a residual term to maturity of more than one year.
Classification is to be consistent with AASB 132 and AASB 7.
As a guide include:
preference shares;
convertible notes; and
subordinated loans of a residual maturity of more than one year.
10.1 Members withdrawable shares
Include the value of credit union member withdrawable shares. This item should be prepared in accordance with the APRA prudential treatment and not applicable accounting standards. For prudential purposes, a credit union member share is classified as a liability and is not capital. In the event of redemption, the liability would be reduced by the issue value of shares redeemed.
10.2 Loan capital
As a guide include:
subordinated loans of a residual maturity of more than one year.
10.3 Hybrid securities
As a guide include:
converting preference shares; and
convertible notes.
10.4 Total loan capital and hybrid securities
Total all ‘Loan capital and hybrid securities’ items listed above.
11. Total liabilities
Sum all liabilities.
11.1.1 Total liabilities of which deposits, debt securities and loans from controlled entities and associates – Subordinated
Report the total amount of liabilities of a subordinated nature from controlled entities or associates of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.
A subordinated debt is a loan/debt security that ranks below other debts should a company be wound up. This includes all debt securities both short and long-term.
11.1.2 Total liabilities of which deposits, debt securities and loans from controlled entities and associates – Secured
Report the total amount of liabilities of a secured nature from controlled entities or associates of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.
A secured debt is a loan/debt security that ranks above other debts should a company be wound up. This includes all debt securities both short and long-term.
11.1.3 Total liabilities of which deposits, debt securities and loans from controlled entities and associates – Other
Report the total amount of liabilities other than subordinated or secured in nature, from controlled entities or associates of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.
11.2.1 Total liabilities of which deposits, debt securities and loans from the parent entity – Subordinated
Report the total amount of liabilities of a subordinated nature from the parent entity of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.
A subordinated debt is a loan/debt security that ranks below other debts should a company be wound up. This includes all debt securities both short and long-term.
11.2.2 Total liabilities of which deposits, debt securities and loans from the parent entity – Secured
Report the total amount of liabilities of a secured nature from the parent entity of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.
A secured debt is a loan/debt security that ranks above other debts should a company be wound up. This includes all debt securities both short and long-term.
11.2.3 Total liabilities of which deposits, debt securities and loans from the parent entity – Other
Report the total amount of liabilities other than subordinated or secured in nature, from the parent entity of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.
11.3 Total liabilities of which other secured deposits, debt securities and loans
Report the total amount of liabilities of a secured nature from parties other than the parent, controlled or associated entities of the reporting entity. Liabilities in the form of deposits, loans, advances, bonds, notes and debentures should be reported.
A secured debt is a loan/debt security that ranks above other debts should a company be wound up. This includes all debt securities both short and long-term.
12. Net assets
Calculated as ‘Total assets’ less ‘Total liabilities’.