Transitional
3. (1) The amount to be entered for an item in Column 4 of Table 1 to this Schedule is calculated by subtracting the book value set out in Column 2 from the market value set out in Column 3, and, (a) if that number is positive, entering it in Column 4; or (b) if that number is not positive, entering zero in Column 4. (2) The amount to be entered for an item in Column 5 of Table 1 to this Schedule is calculated by subtracting the market value in Column 3 from the book value in Column 2, and, (a) if that number is positive, entering it in Column 5; or (b) if that number is not positive, entering zero in Column 5. TABLE 1   CALCULATIONS RESPECTING THE INVESTMENT VALUATION RESERVE  Item

Column 1

Column 2

Column 3

Column 4

Column 5


 

Category of Assets

Book Value ($000s)

Market Value ($000s)

Market Excess ($000s)

Market Deficiency ($000s)


 

Debt Securities

 

 

 

 


1.

Short term bonds, debentures and other evidences of indebtedness

 

 

A

 


2.

Short term mortgage loans

 

 

 

D


3.

Long term bonds, debentures and other evidences of indebtedness

 

 

 

 


4.

Long term mortgage loans

 

 

 

 


5.

Total debt securities

 

 

 

 


 

Equity Assets

 

 

 

 


6.

Preferred and common shares

 

 

B

E


 

Real Estate

 

 

 

 


7.

Real estate

 

 

 

 


8.

Total Debt Securities, Equity Assets and Real Estate

 

 

 

F


9.

Total Long Term Bonds, Debentures and other Evidences of Indebteness, Long Term Mortgage Loans and Real Estate

 

 

 

G


10.

Total Debt Securities and Real Estate

 

 

C

 


11.

Total Long Term Bonds, Debentures and other Evidences of Indebteness, Long Term Mortgage Loans, Equity Assets and Real Estate

 

 

 

H TABLE 2   CALCULATION OF THE INVESTMENT VALUATION RESERVE  Item

Column 1

Column 2


 

Description of Calculation

Amount ($000s)


 

Debt Securities

 


1.

Net deficiency for reserve purposes for long term debt securities and real estate, equal to G minus B, from Table 1, if that amount is positive; zero, if it is negative

I


 

Equity Assets

 


2.

Net deficiency for equity assets, equal to E minus C, from Table 1, if that amount is positive; zero, if it is negative

J


3.

The amount of J for the preceding year

K


4.

The two-year average of the net deficiencies for equity assets, which equals 0.5 times the sum of J and K

L


5.

Net deficiency for reserve purposes for equity assets, equal to the lesser of J or L

M


 

Mortgage Loans

 


6.

Market deficiency for short term mortgage loans, equal to D, from Table 1, if the book value of the total mortgage loans exceeds 20 per cent of the book value of the assets; if it does not, the amount is equal to zero

N


7.

The amount equal to D minus A, from Table 1, if that amount is positive and if the book value of the total mortgage loans exceeds 20 per cent of the book value of the assets; if they do not, the amount is equal to zero

P


 

Investment Valuation Reserve

 


8.

The sum of I, M and N

Q


9.

The amount of F from Table 1

R


10.

The sum of H and P

S


11.

The amount of the Investment Valuation Reserve, equal to the least of Q, R and S R.R.O. 1990, Reg. 665, Sched.