Subdivision The scope and nature of audit testing re - Financial Sector (Collection of Data) (reporting standard) determination No. 7 of 2007 - MRS 140.1 - Investments - Direct Equity Holdings - The scope and nature of audit testing required is outlined in the applicable Auditing and Assurance Guidance Statement issued by the Auditing and Assurance Standards Board | Zoe
Financial Sector (Collection of Data) (reporting standard) determination No. 7 of 2007 - MRS 140.1 - Investments - Direct Equity Holdings
The scope and nature of audit testing reThe scope and nature of audit testing required is outlined in the applicable Auditing and Assurance Guidance Statement issued by the Auditing and Assurance Standards Board
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The scope and nature of audit testing required is outlined in the applicable Auditing and Assurance Guidance Statement issued by the Auditing and Assurance Standards Board
Definitions
Definitions for data reporting items required by this form have been provided, where possible, in the instructions under the section headed ‘Specific Instructions’.
Basis of Preparation
Unit of Measurement
This form is to be prepared in thousands of Australian dollars (AUD). Amounts denominated in a currency other than Australian currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchanges Rates (AASB 121).
Assets
The aggregate value of investments disclosed in the forms listed below must agree to the total of amounts reported as both current and non-current assets in items 3 and 8 Investments (relates to the MRF 140 series of forms) of MRF 300.0 Statement of Financial Position (MRF 300.0).
MRF 140.0 Investments – Direct Interest Rate Holdings (MRF 140.0)
MRF 140.1 Investments – Direct Equity Holdings (MRF 140.1)
MRF 140.2 Investments – Direct Property Holdings (MRF 140.2)
MRF 140.3 Investments – Loans and Advances (MRF 140.3)
MRF 140.4 Investments – Assets Indirectly Held (MRF 140.4)
Holding of units in unit trusts
Where the entity’s investments are represented by holdings of units in unlisted or listed managed investment vehicles/entities, the following reporting is required:
Units are to be reported in MRF 140.4. This form requires, amongst other things, disclosure of the value of the unit holding according to the nature of the underlying market exposure (i.e. interest rate related, equity related, property related). If the units are held in a diversified or balanced trust, the investment holding is to be disclosed in accordance with the fund’s advised asset allocation.
Holdings must be disclosed as unlisted or listed units.
Securities purchased (sold) under agreements to resell (repurchase) and stock lending/borrowing
Reporting for the purposes of this form is to be consistent with AASB 139 Financial Instruments: Recognition and Measurement (AASB 139)
Where the transferee of the security effectively receives a lender’s rate of return or a return that does not correlate with ownership of the securities (i.e. the risks and rewards of ownership of the underlying securities are not effectively transferred), these transactions are to be accounted for as collateralised borrowing or lending activities.
Under this method of accounting for transactions that satisfy the above, do not adjust (i.e. increase or decrease) the physical investment security holdings/portfolios (interest rate and equity investments) for the securities that are subject to these agreements.
Securities transacted not settled (i.e. trade date accounting)
Include market-related securities that are recorded on a trade date basis and transacted in accordance with accepted financial market settlement periods. Such securities are to be included in the MRF 140 series. These do not constitute forward asset purchases for the purposes of MRF 130.0 Off-Balance Sheet Business – Direct Credit Substitutes Provided (MRF 130.0).
Related party/entity
Related parties/entities are to be interpreted in accordance with AASB 124 Related Party Disclosures (AASB 124) .
Parent
Parent entity is to be interpreted in accordance with AASB 127 Consolidated and Separate Financial Statements (AASB 127).
Subsidiaries
Subsidiaries are to be interpreted in accordance with AASB 127.
Associates
Associates are to be interpreted in accordance with AASB 128 Investments in Associates (AASB 128).
Joint ventures
Joint ventures are to be interpreted in accordance with AASB 131 Interests in Joint Ventures (AASB 131).
Specific Instructions
Equity securities listed on the primary board of the Australian Stock Exchange (ASX)
Report all equity securities listed on the ASX at fair value. This section relates only to equity securities that are listed on the ASX. Do not include in this section equity securities that are owned by the MDO and listed on recognised stock exchanges in other countries outside of Australia.
Include:
preference shares;
securities (stock) lent or sold under repurchase agreements; and
Equity securities that are listed on the Australian stock exchange.
Exclude:
rights, options and warrants; include these as financial derivatives in MRF 160.0 Derivative Activity (MRF 160.0);
equity in non-Australian resident companies listed on the ASX (report these assets as unlisted equity at item 4);
securities borrowed or purchased under resale agreements; and
equity securities listed on recognised stock exchanges in other countries outside of Australia.
1.1 Authorised Deposit-taking Institutions (ADIs)
Banks refers to ADIs, in relation to which an authority under subsection 9(3) is in force and which hold a consent under section 66 of the Banking Act to use the word bank.
Include:
Development banks; and
Foreign banks licensed to operate in Australia under the Banking Act
Exclude:
Merchant banks (record as Other).
ADIs refer to corporations, which have an authority under subsection 9(3) in force, but which do not hold a consent under section 66 under the Banking Act to use the word bank. These include Building Societies and Credit unions.
Exclude:
Holding of securities issued by Finance Corporations, these are included under Registered Financial Corporations (RFC).
1.2 General insurers
Includes corporations that provide general insurance (e.g. fire, accident, employer liability, public liability, household, marine).
1.3 Private trading corporations
Include Intra group financiers and retailers registered under the Financial Sector (Collection of Data) Act 2001 and parent companies with significant holdings of shares in private trading companies.
1.4 Australian Commonwealth government corporations
Trading enterprises owned by the Commonwealth are those businesses, which are owned and controlled by the Australian Commonwealth Government.
Include:
All resident trading enterprises owned 50% or more by the Commonwealth Government or controlled by the Commonwealth Government through legislation, decree or regulation.
1.5 RFCs
Registered Financial Corporations refers to corporations registered under the Financial Sector (Collection of Data) Act 2001 that are classified as Categories D or Other. A list of corporations registered under the Financial Sector (Collection of Data) Act 2001 and their classification are available on the APRA website.
Include:
Money market corporations (D); and
Other (formerly categories E, F and G).
Exclude:
Intra group financiers and retailers registered under Financial Sector (Collection of Data) Act 2001.
Cash management trusts (Note: cash management trusts are to be reported in MRF 140.4).
1.6 Other
Report equity securities that are not specifically included in the categories listed above.
Equity securities not listed on the primary board of the ASX or are unlisted
Report equity securities at fair value.
Include:
unlisted preference shares;
equity in unlisted Australian resident companies;
listed and unlisted equity securities in non-Australian resident companies listed on the ASX;
equity securities of non-Australian resident companies listed on overseas stock exchanges; and
securities (stock) lent or sold under repurchase agreements.
Exclude:
options and warrants;
securities borrowed or purchased under resale agreements, where the transaction does not effectively result in the transfer of the rights of ownership of the securities; and
units in unlisted unit trusts (report these in MRF 140.4).
Note: cash management trusts are to be included in MRF 140.4.
Equity securities listed on the primary board of a stock exchange
Report the total of 1.1 – 1.6 at this item.
Equity securities not listed on the primary board of a stock exchange or are unlisted
Report the total of 2.1 – 2.6 at this item.
Total direct equity investments classified into the following
5.1 Current Assets
Disclose that component of the total direct equity investments of the MDO that are classified as current assets in accordance with the Australian Accounting Standards.
5.2 Non-Current Assets
Disclose that component of the total direct equity investments of the MDO that are classified as non-current assets in accordance with the Australian Accounting Standards.
Total direct equity investments which are:
6.1 Denominated in a currency other than the Australian currency
Report the aggregate balance of equity investments that are denominated in a currency other than the Australian currency.
6.2 Investment/holdings in:
Report holdings of equity securities in accordance with the following categories detailed on the form:
6.2.1 Own equity instruments
6.2.2. Parent entity
6.2.3. Controlled entities / controlled entities of the parent