Document ID: chunk:federal_register_of_legislation:C2016C00501:clause:2_4
Version: federal_register_of_legislation:C2016C00501
Segment Type: clause
Provision Reference: sch 2 cl 4
Character Range: 7103–8207

4  Section 820‑310 (method statement, step 3)
Repeal the step, substitute:

           Step 3. Add to the result of step 2 the average value, for that year, of all the *tier 1 prudential capital deductions for the entity, to the extent that they are not attributable to:

                (a) any of the entity's *overseas permanent establishments; or
                (b) any *Australian controlled foreign entities of which the entity is an *Australian controller; or
                (c) any of the entity's goodwill or intangible assets which relate to the excess mentioned in paragraph 5.3 of *accounting standard AASB 1038, as issued on 17 November 1998, to the extent that the excess is referrable to *VBIF; or

                  Note: Paragraph 5.3 of that accounting standard applies to any excess of the net market values of an interest in a subsidiary over the net amount of that subsidiary's assets and liabilities.

                (d) any of the entity's intangible assets comprising capitalised software expenses.

            The result of this step is the safe harbour capital amount.