Financial Sector (Collection of Data) (reporting standard) determination No. 71 of 2006 - Reporting Standard GRS 140.2 (2007) Investments - Direct Property Holdings and Risk Charge
Property ExposureProperty Exposure
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Property Exposure
For prudential reporting purposes, a property exposure/investment exists where the investment (earnings and capital value) are dependent on the cash flows generated by the property through sale or rental income. Investments in property denominated in a currency other than Australian currency must also be reported on this form.
Property exposure that is to be reported on this form, only relates to exposure to direct holdings of property (direct investment/ownership in freehold or leasehold real estate).
Following property exposures are not to be to be reported on this form, but in GRF 140.4 Investments – Indirectly Held by the Insurer and Risk Charge:
- Holding in listed property trusts
Indirect ownership of physical real estate. Units are listed and traded on the primary board of a recognised stock exchange.
- Holding in unlisted property trusts
Indirect ownership of physical real estate. Units are not listed and traded on the primary board of a recognised stock exchange.
Property Classifications
For this return the insurer’s exposure/investment in direct property, is to be classified according to the following type of property market/categories:
- Office;
- Retail – e.g. includes retail shops, restaurants, shopping centres;
- Tourism and leisure – e.g. includes hotels, motels and lodgings, recreational and sporting facilities, hotel developments, time-share developments and other hospitality industries;
- Infrastructure; and
- Other
Fair Value
Fair value must be used for the measurement of the carrying value of the direct property investments/holdings.
Investment Capital Factor %
This column discloses the appropriate investment capital charge for the asset type in accordance with GPS 110 Capital Adequacy.
Investment risk charge
This column will automatically calculate the appropriate investment risk charge in accordance with GPS 110 Capital Adequacy.
Total direct property investments
This is automatically calculated by the form and represents the sum of fair value of all property investments of the insurer.
- Total direct property investments, which represent the following:
1.1 Current Assets
Disclose that component of the total direct property investments of the insurer that are classified as current assets for Australian financial reporting purposes. Disclosure of investments in GRF 300.0 Statement of Financial Position into current assets is to be disclosed/reported in accordance with AASB 101 ‘Presentation of Financial Statements’.