A1A.311.

Currency and deposits (TALC 41) is further classified into:

• cash and deposits (TALC 411);
• Special Drawing Rights (SDRs) (TALC 412);
• monetary gold (bullion) (TALC 413); and
• monetary gold (allocated and unallocated) (TALC 414).

A1A.311.

Cash and deposits (TALC 411) consists of:

• cash in the form of notes and coins that are of fixed nominal values and are issued or authorised by the central bank or government; and
• deposits which refers to all claims on the deposit taking corporations (including the central bank) and in some cases, general government or other institutional units.

Includes: Notes and coins on hand; cheques held but not yet deposited; cash and deposits in both Australian currency and foreign currency; deposits placed in the short-term money market such as grants received from the Commonwealth and deposited overnight; units issued by cash management trusts; withdrawable share capital of building societies; claims on the IMF that are components of international reserves and are not evidenced by loans; repayable margin payments in cash related to financial derivative contracts; sight deposits that permit immediate cash withdrawals but not direct third-party transfers; savings and fixed-term deposits; overnight and very short-term repurchase agreements that are included in the national measures of broad money; foreign currency deposits that are blocked because of the rationing of foreign exchange as a matter of national policy; seignorage.

Excludes: Gold and commemorative coins that are not in circulation as legal tender or monetary gold (classified to valuables (TALC 221) or inventories – materials and supplies (TALC 211)); unallocated gold accounts held by monetary authorities as reserves assets (classified to monetary gold (allocated and unallocated) (TALC 414)); claims on the IMF that are evidenced by loans (classified to loans and placements not elsewhere classified (TALC 439)).

A1A.312.

Special Drawing Rights (SDRs) (TALC 412) consists of international reserve assets created by the International Monetary Fund (IMF) and allocated to its members to supplement reserve assets. SDR holdings represent each holder’s unconditional right to obtain foreign exchange or other reserve assets from other IMF members.

A1A.313.

Monetary gold (gold bullion) (TALC 413) consists of gold bullion, in the form of coins, ingots or bars with a purity of at least 995 parts per 1000, to which the monetary authorities (or others who are subject to the effective control of the monetary authorities) have title and is held as a reserve asset. Monetary gold in the form of bullion is a type of financial asset that has no counterpart liability in GFS and is restricted to central banks or central governments. A central bank is a public financial corporation that issues bank notes and coins and holds the international reserves of the country (in Australia, this is the Reserve Bank of Australia). Gold bullion is traded on organised markets or through bilateral arrangements between central banks.

Excludes: Gold not held as a reserve asset but held primarily as a store of value (classified to valuables (TALC 221)); gold not held as a reserve asset but used in a production process (classified to inventories – materials and supplies (TALC 211)); allocated or unallocated gold accounts held as reserve assets (classified to monetary gold (allocated and unallocated) (TALC 414)); deposits, loans and debt securities denominated in gold (classified to cash and deposits (TALC 411), loans and placements not elsewhere classified ( TALC 439) and debt securities (TALC 421) respectively)).

A1A.314.

Monetary gold (allocated and unallocated) (TALC 414) consists of allocated and unallocated gold accounts to which the monetary authorities (or others who are subject to the effective control of the monetary authorities) have title and is held as a reserve asset. Allocated gold accounts provide ownership of a specific piece of gold. The ownership of the gold remains with the entity placing it for safe custody. Unallocated gold accounts represent a claim against the account custodian to deliver gold. For these accounts, the account provider holds title to a reserve base of physical gold and issues claims to account holders denominated in gold.

Excludes: gold not held as a reserve asset but held primarily as a store of value (classified to valuables (TALC 221)); gold not held as a reserve asset but used in a production process (classified to inventories – materials and supplies (TALC 211 )); unallocated gold accounts not held as reserve assets (classified to cash and deposits (TALC 411)); deposits, loans and debt securities denominated in gold (classified to cash and deposits (TALC 411), loans and placements not elsewhere classified (TALC 439) and debt securities (TALC 421) respectively)).

A1A.315.

Securities and related assets (TALC 42) is further classified into:

• debt securities (TALC 421);
• financial derivatives (TALC 422);
• employee stock options (TALC 423);
• equity including contributed capital (TALC 424); and
• investment fund shares or units (TALC 425).

A1A.316.

Debt securities (TALC 421) consists of negotiable financial instruments serving as evidence of a debt.

Includes: Bills such as treasury bills, negotiable certificates of deposit, bankers’ acceptances, promissory notes, and commercial paper; bonds and debentures; bonds that are convertible into shares; zero-coupon bonds; deep-discount bonds; loans that have become negotiable from one holder to another and where there is evidence of secondary market trading; non-participating preferred stocks or shares; asset-backed securities; collateralised debt obligations; stripped securities; and index-linked securities.

A1A.317.

Financial derivatives (TALC 422) consists of financial instruments that are linked to another specific financial instrument or indicator or commodity, through which specific financial risks, such as interest rate risk, foreign exchange risk, equity and commodity price risks and credit risks, can be traded in their own right in financial markets.

Includes: Options, warrants including detachable warrants, forward-type contracts such as futures, forward rate agreements and forward foreign exchange contracts; swap contracts such as currency swaps, interest rate swaps and cross-currency interest rate swaps; credit derivatives such as total return swaps and credit default swaps; and stock options granted to employees that can be traded on financial markets without restriction; repurchase agreements; securities repurchase agreements which involve the sale of securities for cash, at a specified price, with a commitment to repurchase the same or similar securities at a fixed price either on a specified future data or with an open maturity; securities lending which involves security holders transferring securities to another party, subject to the stipulation that the same or similar securities be returned on a specified date or on demand; gold swaps which involve an exchange of gold for foreign exchange deposits with an agreement that the transaction be reversed at an agreed future date at an agreed gold price; and off-market swaps which involve swap contracts that have a non-zero value at inception as a result of having reference rates priced differently from current market values.

Excludes: Instruments with embedded derivatives (these are classified according to the primary characteristics of the instrument); central bank swap arrangements (classified to advances other than concessional loans (TALC 433)); repayable margin payments made in cash (classified to currency and deposits TALC 511); repayable margin payments made in assets other than cash (not recorded as a transaction or change in stock position because no change in economic ownership has occurred).

A1A.318.

Employee stock options (TALC 423) consists of options to buy the equity of a company, offered to employees of the company as a form of remuneration.

Includes: Stock options provided to suppliers of goods and services.

Excludes: Stock options granted to employees that can be traded on financial markets without restriction (classified to financial derivatives (TALC 422)).

A1A.319.

Equity including contributed capital (TALC 424) consists of all instruments and records that acknowledge claims on the residual value of a corporation or quasi-corporation, after the claims of all creditors have been met.

Includes: Listed and unlisted shares; stocks; participations; depository receipts which are securities that represent ownership of securities listed in other economies.

A1A.320.

Investment fund shares or units (TALC 425) consists of collective investment undertakings through which investors pool funds for investment in financial or non-financial assets. These funds issue shares (if a corporate structure is used) or units (if a trust structure is used). Investment fund shares or units refer to the shares issued by mutual funds and unit trusts, rather than the shares they may hold.

Includes: Money market funds; non-money market funds.

A1A.321.

Loans and placements (TALC 43) is further classified into:

• finance leases (TALC 431);
• advances - concessional loans (TALC 432);
• advances other than concessional loans (TALC 433); and
• loans and placements not elsewhere classified (TALC 439).

A1A.322.

Finance leases (TALC 431) consists of contracts under which the lessor, as legal owner of the asset, conveys substantially all risks and rewards of ownership of the asset to the lessee.

A1A.323.

Advances - concessional loans (TALC 432) consists of loans with concessional interest rates.

A1A.324.

Advances other than concessional loans (TALC 433) consists of loans and other non-equity financial assets acquired for policy rather than for liquidity management purposes. As a general rule, all loans made by general government to other government bodies, except loans made by central borrowing authorities, are deemed to be for policy purposes.

Includes: Long and short-term loans, non-marketable debentures; and long and short term promissory agreements (bonds and bills) issued to public sector units for the purposes of achieving government policy objectives.

Excludes: Government equity in public corporations (classified to equity including contributed capital (TALC 424)); grants (classified to revenue from current grants and subsidies (ETF 1141, SDC) or revenue from capital grants (ETF 1151, SDC)); concessional loans (classified to advances – concessional loans (TALC 432)); investment for liquidity management and income generation purposes.

A1A.325.

Loans and placements not elsewhere classified (TALC 439) consists of financial instruments that are created when a creditor lends funds directly to a debtor and receives a non-negotiable document as evidence of the asset.

Includes: Overdrafts, mortgage loans; loans to finance trade credit and advances; claims on the IMF in the form of loans.

Excludes: Concessional loans (classified to advances - concessional loans (TALC 432)); trade credit and advances (classified to accounts receivable (TALC 452)); accounts receivable (classified to accounts receivable (TALC 452)); loans that have become negotiable from one holder to another and where there is evidence of secondary market trading (classified to debt securities (TALC 421)); financial assets created by finance leases (classified to finance leases (TALC 431)); loans acquired for policy rather than for liquidity management purposes (classified to advances other than concessional loans (TALC 433)).

A1A.326.

Insurance, superannuation and standardised guarantee schemes (TALC 44) is further classified into;

• non-life insurance technical reserves (TALC 441);
• life insurance and annuities entitlements (TALC 442);
• provisions for defined benefit superannuation (TALC 443);
• claims of superannuation funds on superannuation fund manager (TALC 444); and
• provisions for calls under standardised guarantee (TALC 445).       

A1A.327.

Non-life insurance technical reserves (TALC 441) consists of prepayments of net non-life insurance premiums and reserves to meet outstanding non-life insurance claims.

Includes: Reserves for unexpired risks; equalisation reserves when there is an event that gives rise to a liability.

A1A.328.

Life insurance and annuities entitlements (TALC 442) consists of financial claims policy holders have against an enterprise offering life insurance or providing annuities.

Includes: Liabilities of life insurance companies and annuity providers for prepaid premiums and accrued liabilities to life insurance policy holders and beneficiaries of annuities

A1A.329.

Provisions for defined benefit superannuation (TALC 443) consists of provisions for financial claims that past and current employees hold against either their employer, or a fund designated by the employer, to pay defined benefit superannuation as part of a compensation agreement between the employer and employee. In Australian GFS, only the net liability position for provisions for defined benefit superannuation (TALC 543) is currently shown as any related financial assets have been netted off. This asset category is maintained to align with the international standards and will report a zero balance until specifically earmarked assets can be reported by data providers.

A1A.330.

Claims of superannuation funds on superannuation manager (TALC 444) consists of claims a superannuation fund may have on the superannuation manager to fund a deficit that is the responsibility of the superannuation manager.

A1A.331.

Provisions for calls under standardised guarantee schemes (TALC 445) consists of the expected calls under outstanding guarantees net of any recoveries the guarantor expects to receive from defaulting borrowers.

Includes: Export credit guarantees, deposit guarantees; student loan guarantees.

A1A.332.

Other financial assets (TALC 45) is further classified into:

• provisions for employee entitlements other than superannuation (TALC 451);
• accounts receivable (TALC 452); and
• other financial assets not elsewhere classified (TALC 459).

A1A.333.

Provisions for employee entitlements other than superannuation (TALC 451) consists of funds set aside by an institutional unit to cover employee entitlements other than superannuation. In Australian GFS, only the net liability position for provisions for employee entitlements other than superannuation (TALC 551) is shown as any related financial assets have been netted off. This asset category is maintained to align with the international standards and will report a zero balance until specifically earmarked assets can be reported by data providers.

A1A.334.

Accounts receivable (TALC 452) consists of trade credit, advances and miscellaneous other items due to be received. Accounts receivable are recorded at nominal value.

Includes: Accounts receivable; trade credit extended directly to purchasers of goods and services; advances for work that is in progress or to be undertaken, such as progress payments made during construction in advance for work being done or for prepayments of goods and services; accrued but unpaid taxes; dividends; purchases and sales of securities; rent; wages and salaries; social contributions; social benefits; payments due under financial derivative contracts that are in arrears; payments of amounts that have not yet accrued such as prepayments of taxes; deposits payable in advance to cover breakages or non-payment for the use of goods and services; and bail deposits.

Excludes: Loans (classified to loans and placements (TALC 43)), debt securities (classified to debt securities (TALC 421)); and promissory notes or another type of security issued to consolidate the payment due on several trade credits (classified to debt securities (TALC 421)); deposits held by court or tax authorities pending resolution of a dispute (classified to cash and deposits (TALC 411)).

A1A.335.

Other financial assets not elsewhere classified (TALC 459) consists of financial assets that cannot be classified to currency and deposits (TALC 41), securities and related assets (TALC 42), loans and placements (TALC 43), insurance, superannuation and standardised guarantee schemes (TALC 44), provisions for employee entitlements other than superannuation (TALC 451) or accounts receivable (TALC 452).