Treatment of Cash collateral

How does cash collateral be treated as this creates a financial asset when cash collateral has been given for initial margin or adverse margin. Does this form part of the other assets section of the return, or is it excluded? If it is to be included, should it be unencumbered?

Derivatives (liabilities) Collateralised derivatives with a negative fair value are reported as follows: The carrying amount of the derivative is reported as a source of encumbrance in {AE-SOU; r020; c010} The collateral (initial margins required to open the position and any collateral placed for the market value of derivatives transactions) are reported as follows: – If it is an asset of the reporting institution: its carrying amount is reported in {AE-ASS; *; c010} and {AE-SOU; r020; c030}; its fair value is reported in {AE-ASS; *; c040}. – If it is collateral received by the reporting institution, its fair value is reported in {AE-COL; *; c010}, {AE-SOU; r020; c030} and {AE-SOU; r020; c040}. From the above, it is stated that the carrying value of derivatives under these type of collateral arrangement should be reported as the source of encumbrance. The above also stated clearly that any collateral (including initial margins and any collateral placed for the market value of derivatives transactions) should be reported as encumbered assets in the "AE - SOU" template. Based on the statements above, margin accounts and any receivables placed with counterparties under collateral arrangements should be reported as "encumbered" as well.