This is the value, as at the relevant date, in relation to positions giving rise to commodities risk (excluding gold risk), as determined in accordance with relevant prudential standards.  This item includes positions (both on-balance sheet and off-balance sheet) in:     - commodity forwards;     - commodity futures;      - commodity swaps;     - and other applicable commodity instruments (e.g. commodity options, where the entity uses a particular capital treatment approach).For the purposes of this item and subject to prior approval from APRA, positions in foreign currency denominated commodities may be segmented into a commodity exposure and a foreign currency exposure. Only report the commodity exposure at this item. 

An ADI that uses the maturity ladder approach should complete this item.

All commodity positions, both on-balance sheet and off-balance sheet, which are affected by changes in commodity prices, should be included. This includes commodity forwards, commodity futures and commodity swaps. It also includes the delta-equivalent of commodity options (where the delta-plus method for options is used). Commodity derivatives should be converted into notional commodity positions according to the methods set out in APS 116.

Each commodity position should first be expressed in terms of the standard unit of measurement (e.g.. barrels, kilos, grams) and then converted into Australian dollars using spot rates applying at the close of business on the reporting date (report the AUD figure). If prior approval has been obtained from APRA, positions in foreign currency denominated commodities may be segmented into a commodity exposure and a foreign currency exposure.

The capital charge must be calculated separately for each commodity. Positions in different commodities may not, as a general rule, be offset (refer to APS 116 for details of permissible offsetting).

The capital charge for each commodity is to be calculated in accordance with APS 116. A separate calculation must be performed for each commodity in which the ADI has a position.