Borrowed securities amounts are certain liabilities of an entity that relate to reciprocal purchase agreements, sell-buyback arrangements and securities loan arrangements.
A borrowed securities amount is relevant to calculating adjusted average debt and non-debt liabilities for financial entities.
An entity's borrowed securities amount at a point in time is the total of its liabilities that meet the following conditions:
- the value of the liabilities is calculated by reference to the value, at that time, of the securities the entity has short sold
- at that time, the entity has settled the sale using securities it acquired under one of the following arrangements
- a reciprocal purchase agreement
- a sell-buyback arrangement
- a securities loan arrangement.
- subsection 995-1(1) of the ITAA 1997.