Document ID: chunk:federal_register_of_legislation:F2022L01562:body:0:p8
Version: federal_register_of_legislation:F2022L01562
Segment Type: other
Provision Reference: 
Character Range: 18731–21800

and Attachment D to this Prudential Standard.
37.         Accumulated other comprehensive income and other disclosed reserves include, but are not limited to:
(a)          unrealised gains or losses relating to investment securities;
(b)          reserves from equity-settled share-based payments (share or share options) granted to employees as part of their remuneration package provided that:
(i)            the share or share options granted relate only to the ordinary shares of the ADI;
(ii)         the ordinary shares comprise only new ordinary shares to be issued by the ADI to employees, or new ordinary shares already issued by the ADI to employees for this specific purpose; and
(iii)       there are no circumstances under which such remuneration can be converted into another form (e.g. cash);
(c)          foreign currency translation reserve;
(d)          cumulative unrealised gains or losses on hedges[6] offsetting gains or losses included in Common Equity Tier 1 Capital (such as movements in the currency value of foreign-currency-denominated hedging instruments that offset movements in foreign-currency-denominated items recognised in the foreign currency translation reserve). This includes fair value gains or losses on derivatives representing effective economic hedges of assets; and
(e)          any other gains and losses in accumulated other comprehensive income and other disclosed reserves that may be specified by APRA.
For the purposes of paragraph (b), any other reserves associated with share-based payments must be excluded from Regulatory Capital.
38.         Revaluation of property holdings may be included as part of other disclosed reserves only if:
(a)          the property is owned by the ADI, or a member of the Level 2 group at Level 2;
(b)          the property comprises only land and buildings;
(c)          the property is readily available to be sold. A property need not be scheduled for sale, nor need a sale be intended. However, such a property must be capable of being readily sold within six months were a decision made to sell the property;
(d)          the reserves are shown as a component of equity in the audited published financial accounts of the ADI (and the group that it heads);
(e)          the revaluations are reliable, in accordance with Australian Accounting Standards, and subject to audit or review consistent with Australian Auditing and Assurance Standards. A property must be measured at fair value in accordance with Australian Accounting Standards; and
(f)           the amount of reserves incorporates the full effect of any fair value gains or losses and any gains or losses on hedges offsetting revaluations of the property included in the reserves.

Additional Tier 1 Capital
39.         Additional Tier 1 Capital comprises high quality components of capital that satisfy the following essential characteristics:
(a)          provide a permanent and unrestricted commitment of funds;
(b)          are freely available to absorb losses;
(c)          rank behind the claims of depositors