Document ID: chunk:federal_register_of_legislation:F2023L00641:body:0:p11
Version: federal_register_of_legislation:F2023L00641
Segment Type: other
Provision Reference: 
Character Range: 33660–38115

Standards.

Holdings of own Common Equity Tier 1 Capital instruments  This is the value, as at the relevant date, of the reporting insurer's holdings of its own Common Equity Tier 1 Capital instruments unless exempted by APRA or eliminated under Australian Accounting Standards.

                                                          This item must also include:

                                                              * capital instruments the reporting insurer could be contractually obliged to purchase; and
                                                              * unused portion of the limits agreed with APRA as per the requirements of GPS 112.

Holdings of own Tier 2 Capital instruments                This is the total effective holdings of own eligible Tier 2 Capital instruments that were issued by the reporting insurer unless exempted by APRA or eliminated under Australian Accounting Standards.

L

Liabilities in Australia                                                               This represents the reporting insurer's liabilities which are to be treated as liabilities in Australia under the Insurance Act reported under GRS 300.0.

Liabilities in Australia net of surplus / (deficit) relating to insurance liabilities  This is calculated as the sum of:

                                                                                           * liabilities in Australia; and
                                                                                           * regulatory adjustments to adjusted net assets for accounts payables inside Australia

                                                                                       less the sum of:

                                                                                           * net surplus / (deficit) relating to insurance liabilities inside Australia; and
                                                                                           * regulatory adjustments to adjusted net assets for accounts receivables inside Australia.

M

Mutual equity interests  This is the value of all mutual equity interests on issue up to a maximum limit of 25 percent of the reporting insurer's total Common Equity Tier 1 Capital before applying regulatory adjustments.

                         For the purposes of this item, only include proceeds of issues that have been received by the issuer. Any partly paid issue is reported only to the extent that it has been paid-up.

N

Net assets (less equity components classified as Additional Tier 1 Capital)  For a non-category C insurer, this is net assets as reported in the balance sheet after deducting for any equity components classified as Additional Tier 1 Capital.

                                                                             For a category C insurer, net assets is calculated as:

                                                                                 * assets in Australia

                                                                             minus:

                                                                                 * liabilities in Australia.
Net assets in Australia (before deductions)                                  This is the amount of net assets, deemed as being inside Australia, after adding or deducting the net surplus / deficit related to insurance liabilities, but before any deductions excluded for capital adequacy purposes and determined in accordance with GPS 120.

                                                                             This is calculated as:

                                                                                 * assets in Australia;

                                                                             less:

                                                                                 * liabilities in Australia net of surplus / (deficit) relating to insurance liabilities.

Net assets plus Additional Tier 1 Capital ratio                              For a non-category C insurer, net assets plus Additional Tier 1 Capital ratio is calculated as the sum of:

                                                                                 * Additional Tier 1 Capital; and
                                                                                 * net assets (less equity components classified as Additional Tier 1 Capital) multiplied by 1.2