APRA is the prudential regulator of the Australian financial services industry. It oversees banks, credit unions, building societies, and insurance companies, among others. Australia has adopted national GAAP that starting in 2005 is virtually equivalent to IFRSs. The APRA noted that its objective is to "align its prudential and reporting standards with Australian accounting standards and principles to the extent practicable.... In certain circumstances, however, APRA's prudential framework will depart from accounting standards." Among the areas of departure cited in the discussion paper are:
- Fair value measurement
- Non-accrual loans and deferred acquisition costs
- Treatment of hedges
- Available for sale financial assets
- Property
- Excess of market value over net assets
- Loan loss provisioning
- Defined benefit pension plans
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APRA also states that it will wait until after implementation of A-IFRSs to assess other areas, including leases, impairment, business combinations, share-based payment, joint ventures, and provisions. Click to download: