Document ID: chunk:federal_register_of_legislation:C2011C00698:clause:5_118
Version: federal_register_of_legislation:C2011C00698
Segment Type: clause
Provision Reference: sch 5 cl 118
Character Range: 109676–111067

118  At the end of Subdivision 713‑M
Add:

713‑725  Treatment of certain assets and liabilities of general insurance companies

 (1) This section applies if a *general insurance company becomes or ceases to be a *subsidiary member of a *consolidated group.

 (2) If the *general insurance company becomes a *subsidiary member of the group:
 (a) in working out the step 2 amount for the purposes of the table in section 705‑60, reduce that amount by the sum of the amount of each thing mentioned in subsection (4); and
 (b) in working out the *tax cost setting amount of a thing mentioned in subsection (4) for the purposes of section 705‑35, treat the *market value of the thing as zero.

 (3) If the *general insurance company ceases to be a *subsidiary member of the group:
 (a) in working out the step 4 amount for the purposes of the table in section 711‑20, reduce that amount by the sum of the amount of each thing mentioned in subsection (4); and
 (b) for the purposes of section 711‑25, treat the *terminating value of a thing mentioned in subsection (4) as zero.

 (4) The things are the *general insurance company's:
 (a) deferred acquisition costs in relation to the company's unearned premium reserve; and
 (b) deferred reinsurance expenses in relation to the company's unearned premium reserve; and
 (c) recoveries receivable in relation to the company's *outstanding claims.