Document ID: chunk:federal_register_of_legislation:C2025C00135:section:59
Version: federal_register_of_legislation:C2025C00135
Segment Type: section
Provision Reference: s 59
Character Range: 156483–158522

59  Allocation of operating profit etc.
 (1) A life company must allocate all of the operating profit or loss of a category of business of a statutory fund for a period.
 (2) A life company allocates an operating profit for a period by identifying in its financial statements prepared as at the end of the period:
 (a) the amount of the profit; and
 (b) the amount of the profit that should be treated as, or added to, Australian policy owners' retained profits; and
 (c) the amount of the profit that should be treated as, or added to, overseas policy owners' retained profits; and
 (d) the amount of the profit that should be treated as, or added to, shareholders' retained profits (Australian participating); and
 (e) the amount of the profit that should be treated as, or added to, shareholders' retained profits (overseas and non‑participating).
 (3) A life company allocates an operating loss for a period by identifying in its financial statements prepared as at the end of the period:
 (a) the amount of the loss; and
 (b) the amount representing the portion of the loss to be taken into account in reduction of Australian policy owners' retained profits; and
 (c) the amount representing the portion of the loss to be taken into account in reduction of overseas policy owners' retained profits; and
 (d) the amount representing the portion of the loss to be taken into account in reduction of shareholders' retained profits (Australian participating); and
 (e) the amount representing the portion of the loss to be taken into account in reduction of shareholders' retained profits (overseas and non‑participating).
 (4) A life company must allocate to shareholders' capital of a statutory fund all capital payments made to the fund under section 37.
 (5) A company allocates a capital payment by:
 (a) identifying in its financial statements prepared as at the end of the period in which the payment was made the amount of the payment; and
 (b) identifying that amount as an amount that should be added to shareholders' capital.