Document ID: chunk:federal_register_of_legislation:F2023L00684:body:0:p47
Version: federal_register_of_legislation:F2023L00684
Segment Type: other
Provision Reference: 
Character Range: 119198–122070

principal amounts of all mutual equity interests on issue (determined in accordance with paragraph 1(c)(ii) of this Attachment) are eligible for inclusion in Tier 1 Capital and the capital base.
 1. The net assets of the regulated institution referred to in paragraphs 12(d), 12(e) and 12(f) is as determined under the regulated institution's prudential reporting to APRA under the Financial Sector (Collection of Data) Act 2001 but excludes equity components that are classified as Additional Tier 1 Capital. ↑
 2. This includes, but is not limited to, the future sale or issuance of a capital instrument and the future conversion of an instrument or debt into ordinary shares or mutual equity interests. ↑
 3. As an example, repackaging may occur where an instrument is not marketed in line with its prudential treatment, or if the transaction documentation suggests to investors that the instrument has attributes of a lower level of capital than claimed for prudential treatment. ↑
 4. Technical provisions in this instance refer to insurance contract and reinsurance contract liabilities and assets calculated under Australian Accounting Standards. Technical provisions in surplus or deficit relating to premiums liabilities also include the accruals for the cost of reinsurance not recognised in the accounts required to cover premiums liabilities. ↑
 5. Technical provisions in surplus or deficit of those required by GPS 340 must be adjusted to take account of tax effects. ↑
 6. This includes cumulative unrealised gains or losses on effective cash flow hedges as defined in Australian Accounting Standards. ↑
 7. In cases where capital instruments have a permanent write-off feature, this criterion is still deemed to be met by ordinary shares. ↑
 8. For Level 2 insurance groups, these must be Australian Accounting Standards. ↑
 9. This does not preclude a parent of the regulated institution from holding the instrument where the instrument is directly issued by the regulated institution to the parent. ↑
10. Indirect exposures represent exposures that will result in a loss to the regulated institution substantially equivalent to any loss in the direct holding. ↑
11. Indirect exposures represent exposures that will result in a loss to the regulated institution substantially equivalent to any loss in the direct holding. ↑
12. Any gains on hedges are to be deducted and any losses on hedges added back to Common Equity Tier 1 Capital. ↑
13. Excluding any deferred tax liabilities which have already been netted off elsewhere in accordance with this Prudential Standard. ↑
14. Includes goodwill and intangibles attributable to investments in subsidiaries, joint ventures and associates. For the purposes of this Prudential Standard, a joint operation (as defined under Australian Accounting Standard AASB 11 Joint Arrangements) is to be treated as a joint