Document ID: chunk:federal_register_of_legislation:F2023L00706:body:0:p17
Version: federal_register_of_legislation:F2023L00706
Segment Type: other
Provision Reference: 
Character Range: 58886–62574

effect of net OCL and PL surplus / (deficit)  This is the tax effect of the technical provisions in surplus (positive figure) or deficit (negative figure) of those required under GPS 340.

                                                  Full tax benefits and liabilities must be assumed for the purposes of reporting this item and they must be included when assessing the adjustment for excess of deferred tax assets over deferred tax liabilities.

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 Level 2 insurance group and its capacity to absorb losses.

                                                  Tier 2 Capital is calculated as the sum of:

                                                      * eligible Tier 2 Capital instruments;
                                                      * 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 value of capital instruments that have been temporarily recognised and approved as Additional Tier 1 Capital for transition purposes.

Transitional Tier 2 Capital                       This is the value of capital instruments that have been temporarily recognised and approved as Tier 2 Capital for transition purposes.

U

Undercapitalisation of non-consolidated subsidiaries    This is the value that APRA may require a Level 2 insurance group to deduct from Common Equity Tier 1 Capital to cover undercapitalisation of a non-consolidated subsidiary (or subsidiaries).

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 may be reduced by the expected proceeds, as agreed in writing by APRA, of a Dividend Reinvestment Plan to the extent that dividends are used to purchase new ordinary shares issued by the reporting Level 2 insurance group.

Unrealised gains or losses recognised on balance sheet  This is the total value of unrealised gains or losses that have been recognised on the balance sheet.

Specific Instructions

Table 1: Determination Of Capital Base

Reporting basis

Report information for the Level 2 insurance group capital base as per the requirements of GPS 112.

Units of measurement

Report the values in this table in whole Australian dollars (no decimal place).

Column 1   Report the value for each of the items listed below.

 1.  Tier 1 Capital
 Item 1