Document ID: chunk:federal_register_of_legislation:F2023L00702:front:0:p9
Version: federal_register_of_legislation:F2023L00702
Segment Type: other
Provision Reference: 
Character Range: 25758–29913

in other asset risk stresses. This stress also includes an increase to equity volatility.
Expected inflation downwards stress                              Expected inflation stress measures the impact on the fund's capital base of downward changes to expected Consumer Price Index inflation rates. It also affects nominal interest rates.

(Stress scenario type)                                           This item reports the impact on the capital base of the fund arising from the application of the downward expected inflation stress and is calculated in accordance with LPS 114.
Expected inflation upwards stress                                Expected inflation stress measures the impact on the fund's capital base of upward changes to expected Consumer Price Index inflation rates. It also affects nominal interest rates.

(Stress scenario type)                                           This item reports the impact on the capital base of the fund arising from the application of the upward expected inflation stress and is calculated in accordance with LPS 114.

I
Impact of diversification                  This item must be calculated as the sum of the risk charge components used in calculating the aggregated risk charge component, less the aggregated risk charge component as set out in LPS 114.
Impact on capital base                     This shows the impact on the capital base of each asset risk stress scenario as set out in LPS 114.

                                           This item is calculated for each stress scenario type as the sum of:

                                               * assets not supporting investment-linked liabilities;
                                               * liabilities excluding adjusted policy liabilities;
                                               * adjusted policy liabilities (net of reinsurance) - exclude discretionary component;
                                               * discretionary component of adjusted policy liabilities (net of reinsurance);
                                               * off-balance sheet exposures;
                                               * seed capital; and
                                               * Tier 2 Capital.
Indexed interest-bearing securities        This is the amount of all interest-bearing securities held that are indexed.

(Items subject to Asset Risk Charge type)
Investment property                        This is the amount of the investment property assets which includes properties acquired or held which is available for sale as well as infrastructure assets, after allowance for accumulated depreciation.

(Items subject to Asset Risk Charge type)  Owner-occupied property should be reported as other non-investment assets.

L
Liabilities excluding adjusted policy liabilities  This is the value of liabilities of the fund and is calculated as the sum of:

                                                       * current tax liabilities;
                                                       * deferred tax liabilities;
                                                       * derivative financial instruments (liabilities);
                                                       * subordinated debt;
                                                       * claims payable;
                                                       * reinsurance premiums payable;
                                                       * other accounts payables; and
                                                       * other liabilities.

                                                   This does not include any amount recognised as Tier 2 Capital and seed capital.
Liability adjustments                              This is the difference between the adjusted policy liabilities determined in accordance with LPS 112 and net life contract liabilities after adjusting for accounts receivable and accounts payable. This item includes any tax effects.

                                                   Net life contract liabilities is the sum of the insurance, reinsurance and investment contract liabilities (net