Document ID: chunk:federal_register_of_legislation:F2023L00622:body:0:p13
Version: federal_register_of_legislation:F2023L00622
Segment Type: other
Provision Reference: 
Character Range: 44177–47876

item reduces liability adjustments.

Reserves from equity-settled share-based payments                                  This is the value of reserves from equity-settled share-based payments granted to employees as part of their remuneration package that meets the requirements of LRS 112. This only includes reserves relating to issue of new shares.

Retained earnings                                                                  This is the retained earnings consistent with the reported amount in the balance sheet. For friendly societies, this item includes unallocated benefit fund reserves. Do not include the amount of undistributed current year earnings.

S

Seed capital receivable from approved benefit fund  This is the amount that the management fund will receive from the approved benefit fund in respect of its seed capital.

Seed capital transferred from management fund       This is the amount of seed capital transferred with APRA's approval from the management fund to the approved benefit fund of a friendly society.

Surplus in defined benefit superannuation funds     This is the amount of surplus (if any) in defined benefit superannuation funds where the life company is an employer-sponsor, net of any associated deferred tax liabilities that would be extinguished if the assets involved become impaired or derecognised under Australian Accounting Standards.

                                                    Representations may be made to APRA to include the surplus in the capital base provided the criteria are met as per LPS 112.

T

Tier 1 Capital                          Tier 1 Capital is calculated as the sum of:

                                            * Common Equity Tier 1 Capital; and
                                            * Additional Tier 1 Capital.

Tier 1 Capital ratio                    Tier 1 Capital ratio is calculated as:

                                            * Tier 1 Capital;

                                        divided by:

                                            * prescribed capital amount.
Tier 2 Capital                          Tier 2 Capital includes components of capital that, to varying degrees, fall short of the quality of Tier 1 Capital but nonetheless contribute to the overall strength of the fund and its capacity to absorb losses.

                                        Tier 2 Capital is calculated as the sum of:

                                            * eligible Tier 2 Capital instruments issued by the fund;
                                            * adjustments and exclusions to Tier 2 Capital;
                                            * transitional Tier 2 Capital; and

                                        less:

                                            * holdings of own Tier 2 Capital instruments.
Transitional Additional Tier 1 Capital  This is the amount of capital instrument that have been temporarily recognised and approved as Additional Tier 1 Capital for transitional purposes.

Transitional Tier 2 Capital             This is the amount of capital instrument that has been temporarily recognised and approved as Tier 2 Capital for transition purposes.

U

Undistributed current year earnings                     Undistributed current year earnings should be consistent with the profit/(loss) amounts reported in the income statement.

                                                        This item must account for (where applicable) negative goodwill, expected tax expenses, and dividends when declared in accordance with the Australian Accounting Standards. The declared dividends reported here may be reduced by the expected proceeds, as agreed in