PET - Plain English Taxonomy

Label:	Financial Risk Market Commodities Positions Amount
TREF ID:	DE8041
Data Type:	xbrli:monetaryItemType
Period Type:	instant
Balance Type:	debit
Business Description & Guidance:	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.

Usage

Form	Labels
ARF_116_0_5	Label: Guidance:	Standard Method - Commodities Risk - Simplified Method - Capital Charge An ADI that uses the simplified approach to calculate the capital charge for commodities risk 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 is calculated for each commodity as 15 per cent of the net open position (the difference between the total short position and the total long position) plus 3 per cent of the gross position (the sum of the absolute values of the total short position and the total long position).
ARF_116_0_6	Label: Guidance:	Standard Method - Commodities Risk - Maturity Ladder Method - Capital Charge 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.

Form

Labels

ARF_116_0_5

Label:

Guidance:

Standard Method - Commodities Risk - Simplified Method - Capital Charge
An ADI that uses the simplified approach to calculate the capital charge for commodities risk 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 is calculated for each commodity as 15 per cent of the net open position (the difference between the total short position and the total long position) plus 3 per cent of the gross position (the sum of the absolute values of the total short position and the total long position).

ARF_116_0_6

Label:

Guidance:

Standard Method - Commodities Risk - Maturity Ladder Method - Capital Charge
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.