Document ID: chunk:federal_register_of_legislation:F2023L00641:body:0:p8
Version: federal_register_of_legislation:F2023L00641
Segment Type: other
Provision Reference: 
Character Range: 22238–27213

the reporting insurer's assets which are to be treated as assets in Australia under the Insurance Act reported under Reporting Standard GRS 300.0 Statement of Financial Position (GRS 300.0).

Assets under a fixed or floating charge                                                    This is the value of assets of the reporting insurer 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 reporting insurer's balance sheet.

                                                                                           Where the security exclusively supports a reporting insurer's insurance liabilities (valued in accordance with GPS 340), the deduction only applies to the amount by which the fair value of the charged assets exceeds the reporting insurer's supported insurance liabilities.

C

Capital base                                                                                                The capital base relates to the amount of capital eligible for the purpose of meeting the Prudential Capital Requirement as set out in GPS 110.

                                                                                                            For reporting insurers that are not Category C insurers, the capital base is calculated as the sum of:

                                                                                                                * Tier 1 Capital; and
                                                                                                                * Tier 2 Capital.

                                                                                                            For Category C insurers the capital base is calculated as:

                                                                                                                * adjusted net assets in Australia

                                                                                                            i.e. the amount of the net assets that are deemed as being inside Australia in accordance with GPS 120.

Cash flow hedge reserves relating to hedging of items not recorded at fair value                            This is the value of cash flow hedge reserves that relate to the hedging items that are not recorded at fair value on the balance sheet (including projected cash flows).

Claims payable                                                                                              This is the value of claims payable, which reflects claims due but not paid.

                                                                                                            For inwards reinsurance business, where there is a legal right of set-off within the underlying reinsurance contract, report under this item if the amount after set-off results in a net payable position to the cedant. If there is not a legal right of set-off, report the amount payable without set-off. Also refer to the definition of premiums receivable.

                                                                                                            Claims payable is netted against insurance contract assets or added to insurance contract liabilities under AASB 17.

                                                                                                            This must exclude any amount already allowed in insurance liabilities determined under GPS 340 to avoid double counting.

Common Equity Tier 1 Capital                                                                                This is the highest quality component of capital held by the reporting insurer as determined under the eligibility characteristics set out in GPS 112, net of all regulatory adjustments.

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

                                                                                                                * paid-up ordinary shares;
                                                                                                                * mutual equity interests;
                                                                                                                * retained earnings;
                                                                                                                * undistributed current year earnings;
                                                                                                                * accumulated other comprehensive income and other disclosed reserves;
                                                                                                                * net surplus / (deficit) relating to