Document ID: chunk:federal_register_of_legislation:F2023L00702:front:0:p12
Version: federal_register_of_legislation:F2023L00702
Segment Type: other
Provision Reference: 
Character Range: 37732–41361

a fund's capital base of downward changes in real interest rates. It also affects nominal interest rates.

(Stress scenario type)                                         This item is calculated in accordance with LPS 114.
Real interest rates upwards stress                             Real interest rates stress measures the impact on a fund's capital base of upward changes in real interest rates. It also affects nominal interest rates.

(Stress scenario type)                                         This item is calculated in accordance with LPS 114.
Reinsurance premiums payable                                   This is the amount related to reinsurance premiums due but not yet paid which has been recognised within insurance and reinsurance contract liabilities and assets reported on the balance sheet under AASB 17.

                                                               Premiums should be gross of commissions, before profit share rebates, and inclusive of stamp duty, policy fees, loadings and discounts. This definition is consistent with the definition of premium defined in LRS 750.0. Life companies may use approximate methods to report this item if premiums which meet the outlined definition are not readily available (corresponding adjustments also need to be made in other accounts receivable or other accounts payable).

                                                               Life companies must exclude any amount already allowed in adjusted policy liabilities to avoid double counting.

                                                               This amount must be consistent with reinsurance premiums payable reported in LRS 112.0 as a component of liability adjustment (gross of tax effect).

                                                               This item must not be reported as a component of other asset and liability items including adjusted policy liability related items reported in this Reporting Standard.
Reinsurance recoveries receivable                              This is the amount related to reinsurance recoveries due but not yet received which has been recognised within insurance and reinsurance contract liabilities and assets reported on the balance sheet under AASB 17.

(Items subject to Asset Risk Charge type)                      Life companies must exclude any amount already allowed in adjusted policy liabilities to avoid double counting.

                                                               This amount must be consistent with reinsurance recoveries receivable reported in LRS 112.0 as a component of liability adjustment (gross of tax effect).

                                                               This item must not be reported as a component of other asset and liability items including adjusted policy liability related items reported in this Reporting Standard.
Rental yield used in determination of property stress percent  This is the average rental yield for the property assets based on current leases and net of expenses.

(Yields used in stress scenarios type)
Risk charge components                                         This item is calculated for each stress scenario type as the greater of zero and the impact on capital base amount.

                                                               If the impact on capital base is less than zero then the risk charge component is equal to the absolute value of the impact on capital base.

                                                               If the impact on capital base is greater than zero then the risk charge component is zero.