Basis of preparationBasis of preparation

Basis of preparation

In completing this form, Level 2 insurance groups are requested to follow the recognition and measurement requirements specified in this instruction guide.

Materiality

Level 2 insurance groups are required to report only material interests in controlled entities, associates and joint ventures. Threshold levels for materiality are to be agreed with APRA. Matters that APRA may take into account in determining whether a non-consolidated subsidiary, associate or joint venture is material include, but are not limited to:

• the net assets;
• the total liabilities; and
• the total revenue

of the non-consolidated subsidiary in comparison to those of the Level 2 insurance group.

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.