Document ID: chunk:federal_register_of_legislation:F2023L00622:body:0:p6
Version: federal_register_of_legislation:F2023L00622
Segment Type: other
Provision Reference: 
Character Range: 15769–20193

Additional Tier 1 Capital that are specific to the application of the requirements in LPS 112.

Adjustments and exclusions to Common Equity Tier 1 Capital                                 This is the amount of adjustments applied to Common Equity Tier 1 Capital that are specific to the application of the requirements in LPS 112.

Adjustments and exclusions to Tier 2 Capital                                               This is the amount of adjustments applied to Tier 2 Capital that are specific to the application of the requirements in LPS 112.

Adjustments to Additional Tier 1 capital due to shortfall in Tier 2 Capital                This is the amount of any deductions (refer to LPS 112) from Additional Tier 1 Capital due to a shortfall in Tier 2 Capital to absorb required deductions from this category of capital.

Adjustments to Common Equity Tier 1 Capital due to shortfall in Additional Tier 1 Capital  This is the amount of any deductions (refer to LPS 112) from Common Equity Tier 1 Capital due to a shortfall in Additional Tier 1 Capital to absorb required deductions from this category of capital.

Adjustments to net assets of the fund due to shortfalls in Tier 2 Capital                  This is the amount of any deductions from net assets of the fund due to a shortfall in Tier 2 Capital to absorb any deductions required from this category of capital.

Assets under a fixed or floating charge                                                    This is the value of assets of the fund or life company that are under a fixed or floating charge, mortgage or other security to the extent of the indebtedness secured on those assets. This deduction may be reduced by the amount of any liability for the charge that is recognised on the fund's or life company's balance sheet.

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Capital base                                                                                                This is the amount of capital eligible for the purpose of meeting the Prudential Capital Requirement as set out in Prudential Standard LPS 110 Capital Adequacy.

                                                                                                            For a life company, capital base is calculated as the sum of:

                                                                                                                * Tier 1 Capital; and
                                                                                                                * Tier 2 Capital.

                                                                                                            For a fund, capital base is calculated as the sum of:

                                                                                                                * net assets of the fund;
                                                                                                                * seed capital transferred from management fund;
                                                                                                                * other adjustments to net assets as approved by APRA; and
                                                                                                                * Tier 2 Capital

                                                                                                            less:

                                                                                                                * regulatory adjustments to net assets.
Capital base (net of Tier 2 Capital) ratio                                                                  Capital base (net of Tier 2 Capital) ratio for a fund is calculated as:

                                                                                                                * capital base less Tier 2 Capital;

                                                                                                            divided by:

                                                                                                                * prescribed capital amount.
Claims payable                                                                                              This is the amount related to claims due but not yet paid which has been recognised within insurance and reinsurance contract liabilities and assets reported on the balance sheet under