Part Reporting lag - Financial Sector (Collection of Data) (reporting standard) determination No. 65 of 2006 - Reporting Standard GRS 130.0 (2007) 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

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 110 Capital Adequacy for details of counterparty grades.

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

Asset Grade	Assets to be included in the grade	Investment capital factor
1	Debt obligations of:(a) the Commonwealth Government or(b) Australian State or Territory Government or(c) the national government of a foreign country where:The security has a Grade 1 counterparty[4] rating, or if not rated,The long-term, foreign currency counterparty rating of that country is Grade 1.	0.5%
2	Debt obligations maturing or redeemable in less than one year with a rating of Grade 1 or 2.	1.0%
3	Debt obligation maturing or redeemable in one year or more with a rating of Grade 1 or 2.Reinsurance recoveries and other reinsurance assets due from reinsurers with a counterparty rating of Grade 1 or 2.	2.0%
4	Debt obligation maturing or redeemable in one year or more with a rating of Grade 3.Reinsurance recoveries and other reinsurance assets due from reinsurers with a counterparty rating of Grade 3.	4.0%
5	Debt obligation maturing or redeemable in one year or more with a rating of Grade 4.Reinsurance recoveries and other reinsurance assets due from reinsurers with a counterparty rating of Grade 4.	6.0%
6	Debt obligation maturing or redeemable in one year or more with a rating of Grade 5.Reinsurance recoveries and other reinsurance assets due from reinsurers with a counterparty rating of Grade 5.Listed equity instruments.Units in listed trusts.	8.0%
Free hold real estate, unlisted equity instruments or units in unlisted trusts	Direct holdings of real estate.Unlisted equity instruments.Units in unlisted trusts.	10.0%

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