Part Reporting lag - Financial Sector (Collection of Data) (reporting standard) determination No. 62 of 2008 - GRS 130.0 (2008) - Off Balance Sheet Business - Credit Substitutes Provided and Risk Charge - Reporting lag

Reporting lag

This form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 130.0 Off-Balance Sheet Business – Credit Substitutes Provided and Risk Charge.

Related parties

Where this term is used or referenced in these forms, related parties is to be interpreted consistently with its definition and meaning as contained in AASB 124 ‘Related Party Disclosures’.

In accordance with AASB 124, related party means a party that directly or indirectly through one or more intermediaries:

(a) controls, is controlled by or is under common control with, the entity (this includes parents, subsidiaries and fellow subsidiaries);

(b) has significant influence over the entity or has joint control over the entity; or

(d) is a joint venture in which the entity is a venturer (see AASB 131 ‘Interests in Joint Ventures’); or

(e) is a member of the key management personnel of the entity or its parent; or

(f) is a close member of the family of any individual referred to in (a), (b) or (e); or

(g) is an entity that its controlled, jointly controlled or significantly influenced by, or for which significant voting power in such entity resides with, directly or indirectly, any individual referred to in (e) or in (f); or

(h) is a post-employment benefit plan for the benefit of the employees of the entity, or of any entity that is a related party of the entity.

Specific instructions

Insurers are to indicate "Yes" or "No" in GRF 130.0 Off Balance Sheet Business - Credit Substitutes Provided and Risk Charge on whether the reporting entity is a branch insurer. A branch insurer is a Category C insurer as defined in Prudential Standard GPS 001 Definitions.

Non market related items

This term ‘non market’ refers to items that are not transacted in financial markets.

Transactions relating specifically to financial market products such as derivative financial instruments are not to be included in this form. Transactions and exposures to derivative financial instruments are recorded in GRF 160.0 Derivatives Activity and Risk Charge.

Principal amount

For locally incorporated insurers (including reinsurers), report the principal amount (refers to the face value or gross amount) for off-balance sheet transactions, which give rise to credit exposures.

Counterparty Grade of Obligation/Asset over which the Credit Substitute has been Written

Report the off-balance sheet business on the basis of the Counterparty Grade of Obligation/Asset over which the Credit Substitute has been written.

Refer to GPS 114 for details of counterparty grades.

The relevant asset grades and the applicable investment capital factors are:

	Asset	Investment Capital Factor
	Debt obligations of:the Commonwealth Government;an Australian State or Territory government; orthe national government of a foreign country where: the security has a Grade 1 counterparty rating; or, if not rated, the long-term, foreign currency counterparty rating of that country is Grade 1Assets in respect of anticipated recoveries from the Commonwealth Government or from an Australian State or Territory government	0.5%
2.	Any debt obligation that matures or is redeemable in less than one year with a counterparty rating of Grade 1 or 2 (excluding subordinated debt[4] and debt obligations of government dealt with specifically in this Table)Cash management trusts with a counterparty rating of Grade 1 or 2	1%
3.	Any other debt obligation (that matures or is redeemable in one year or more) with a counterparty rating of Grade 1 or 2 (excluding subordinated debt and debt obligations of government dealt with specifically in this Table)Reinsurance assets due from APRA-authorised reinsurers with a counterparty rating of Grade 1 or 2	2%
4.	Reinsurance assets due from non-APRA-authorised reinsurers with a counterparty rating of Grade 1 or 2 except for reinsurance recoverables specified under paragraph 5 of Attachment A of GPS 114	3%
5.	Any other debt obligation with a counterparty rating of Grade 3 (excluding subordinated debt)Reinsurance assets due from APRA-authorised reinsurers with a counterparty rating of Grade 3Cash management trusts with a counterparty rating of Grade 3	4%
6.	Any other debt obligation with a counterparty rating of Grade 4 (excluding subordinated debt)Reinsurance assets due from APRA-authorised reinsurers with a counterparty rating of Grade 4Reinsurance assets due from non-APRA-authorised reinsurers with a counterparty rating of Grade 3 except for reinsurance recoverables specified under paragraph 5 of Attachment A of GPS 114Cash management trusts with a counterparty rating of Grade 4	6%
7.	Any other debt obligation with a counterparty rating of Grade 5 (excluding unlisted subordinated debt)Reinsurance assets due from APRA-authorised reinsurers with a counterparty rating of Grade 5Unpaid premiums due more than 6 months previouslyCash management trusts with a counterparty rating of Grade 5Listed subordinated debt	8%
8.	Reinsurance assets due from non-APRA-authorised reinsurers with a counterparty rating of Grade 4 except for reinsurance recoverables specified under paragraph 3 of Attachment A of GPS 114

Categories of off-balance sheet business

The categories of off-balance sheet transactions are as follows:

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