A1A.337.

Currency and deposits (TALC 51) is further classified into:

• cash and deposits (TALC 511); and
• Special Drawing Rights (SDRs) (TALC 512).

A1A.338.

Cash and deposits (TALC 511) 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; unallocated accounts for precious metals (including gold); 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.

Excludes: Claims on the IMF that are evidenced by loans (classified to advances other than concessional loans (TALC 533)).

A1A.339.

Special Drawing Rights (SDRs) (TALC 512) consists of international reserve assets created by the International Monetary Fund (IMF) and allocated to its members to supplement reserve assets. The allocation of SDRs is a liability of the member country and interest accrues on this liability. SDR holdings represent each holder’s unconditional right to obtain foreign exchange or other reserve assets from other IMF members.

A1A.340.

Securities and related liabilities (TALC 52) is further classified into:

• debt securities (TALC 521);
• financial derivatives (TALC 522);
• employee stock options (TALC 523);
• equity including contributed capital (TALC 524); and
• investment fund shares or units (TALC 525).

A1A.341.

Debt securities (TALC 521) consists of negotiable financial instruments serving as evidence of a debt.

Includes: Treasury bills; negotiable certificates of deposit; bankers’ acceptances; promissory notes; 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.342.

Financial derivatives (TALC 522) 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; non-repayable margin payments; 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: Insurance and standardised guarantees (classified to insurance, superannuation and standardised guarantee schemes (TALC 54)); contingent assets such as one-off guarantees (classified to loan and other debt instrument guarantees (ETF 7211) or other one-off guarantees (ETF 7212) and letters of credit (classified to other one-off guarantees (ETF 7212); instruments with embedded derivatives (classified according to the primary characteristics of the instrument); central bank swap arrangements (classified to advances other than concessional loans (TALC 533)); repayable margin payments made in cash (classified to cash 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.343.

Employee stock options (TALC 523) 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 TALC 522 Financial derivatives).

A1A.344.

Equity including contributed capital (TALC 524) 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. Equity is treated as a liability of the issuing institutional unit (a public corporation or other government unit). it is recorded at market value if listed or set equal to assets less non-equity liabilities if not listed.

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

A1A.345.

Investment fund shares or units (TALC 525) 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.346.

Loans and placements (TALC 53) is further classified into:

• finance leases (TALC 531);
• advances - concessional loans (TALC 532);
• advances other than concessional loans (TALC 533); and
• loans and placements not elsewhere classified (TALC 539).

A1A.347.

Finance leases (TALC 531) 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.348.

Advances - concessional loans (TALC 532) consists of loans with concessional interest rates.

A1A.349.

Advances other than concessional loans (TALC 533) consists of loans and other non-equity financial assets received from government authorities 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; 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 524)); grants (classified to revenue from current grants and subsidies (ETF 1141, SDC) or revenue from capital grants (ETF 1151, SDC)); non-repayable funds (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 532)); investment for liquidity management and income generation purposes.

A1A.350.

Loans and placements not elsewhere classified (TALC 539) 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 532)); trade credit and advances (classified to accounts payable (TALC 552 )); accounts payable (classified to accounts payable (TALC 552)); loans that have become negotiable from one holder to another and where there is evidence of secondary market trading (classified to debt securities (TALC 521)); financial assets created by finance leases (classified to finance leases (TALC 531)); and loans acquired for policy rather than for liquidity management purposes (classified to advances other than concessional loans (TALC 533)).

A1A.351.

Insurance, superannuation and standardised guarantee schemes (TALC 54) is further classified into:

• non-life insurance technical reserves (TALC 541);
• life insurance and annuities entitlements (TALC 542);
• provisions for defined benefit superannuation (TALC 543);
• claims of superannuation funds on superannuation manager (TALC 544); and
• provisions for calls under standardised guarantee schemes (TALC 545).

A1A.352.

Non-life insurance technical reserves (TALC 541) 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.353.

Life insurance and annuities entitlements (TALC 542) 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.354.

Provisions for defined benefit superannuation (TALC 543) 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

Includes: Liabilities of unfunded superannuation schemes.

Excludes: Liabilities for the payment of social security benefits that were due to be paid but have not yet been paid (classified to accounts payable (TALC 552)).

A1A.355.

Claims of superannuation funds on superannuation manager (TALC 544) 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.356.

Provisions for calls under standardised guarantee schemes (TALC 545) 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.357.

Other liabilities (TALC 55) is further classified into;

• provisions for employee entitlements other than superannuation (TALC 551);
• accounts payable (TALC 552); and
• other liabilities not elsewhere classified (TALC 559).

A1A.358.

Provisions for employee entitlements other than superannuation (TALC 551) consists of claims on an institutional unit to cover employee entitlements other than superannuation. Institutional units incur a liability equal to the present value of the employee entitlements.

Includes: Liabilities for sick leave paid on resignation or retirement; recreation leave; long service leave; workers’ compensation where benefits are paid by an employer not a separate insurer.

A1A.359.

Accounts payable (TALC 552) consists of trade credit, advances and miscellaneous other items due to be paid.

Includes: Accounts payable; 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; accrued 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; bail deposits; social security benefits due for payment but not yet paid; and payments for emissions permits received by government when there is a timing difference between receipt of the payment and the time the corresponding emission occurs.

Excludes: Loans (classified to TALC 53 Loans and placements), debt securities (classified to debt securities (TALC 521)); promissory notes or another type of security issued to consolidate the payment due on several trade credits (classified to debt securities (TALC 521)); deposits held by court or tax authorities pending resolution of a dispute (classified to cash and deposits (TALC 511)).

A1A.360.

This category consists of liabilities that cannot be assigned to TALC 51, TALC 52, TALC 53, TALC 54, TALC 551 and TALC 552.