Document ID: chunk:federal_register_of_legislation:F2024L01124:body:0:p19
Version: federal_register_of_legislation:F2024L01124
Segment Type: other
Provision Reference: 
Character Range: 52380–55447

Memorandum items of this form.

                   An ADI using the IRB approach to credit risk must compare:

                        * the total expected loss (EL) amount (before any tax effects) for non-defaulted IRB exposures to the total eligible provisions (including any associated DTA) for non-defaulted IRB exposures; and
                        * the total EL amount (before any tax effects) for defaulted IRB exposures to the total eligible provisions (including any associated DTA) for defaulted IRB exposures.

                   In both cases, where the EL amount is higher than the eligible provisions, the difference must be deducted from Common Equity Tier 1 Capital.
Item 1.1.2.21      Report Other Common Equity Tier 1 Capital adjustments as advised by APRA.
                   This is the value, as at the relevant date, of all other Common Equity Tier 1 Capital adjustments as advised by APRA.
Item 1.1.2.22      Report 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 of APS 111.

Item 1.1.3         Report Common Equity Tier 1 Capital.
                   This is a derived field on the form.

1.2 Additional Tier 1 Capital

1.2.1 Additional Tier 1 Capital before regulatory adjustments
Column 1  Report the value.

Item 1.2.1.1  Report Additional Tier 1 Capital instruments.
              This is as defined in APS 111.
Item 1.2.1.2  Report Additional Tier 1 Capital instruments issued by fully consolidated subsidiaries in the Level 2 group held by third parties (Level 2 only).
              This is as defined in APS 111.
Item 1.2.2    Report Regulatory Adjustments to Additional Tier 1 Capital.
              This is a derived field on the form. It is the sum of the amounts reported in items 1.2.2.1 to 1.2.2.3 less item 1.2.2.4.
Item 1.2.2.1  Report Capital investments in Additional Tier 1 Capital instruments of ADIs or overseas equivalents and their subsidiaries, insurance companies and other financial institutions.
              This is the value, as at the relevant date, of the reporting entity's direct, indirect and synthetic holdings of Additional Tier 1 Capital instruments of other ADIs, or overseas equivalents and their subsidiaries, insurance companies and other financial institutions.

              For the purposes of this item, exclude:

                   1.           exposures acquired through underwriting of a new Additional Tier 1 Capital instrument and the exposure is disposed of within five days of the date of issue. If the exposure is not disposed of within five days of issuance, it must be reported; or

                   2.           exposures that are held under a legal agreement on behalf of:

                        * at Level 1 - an external third party, even if held in the name of the reporting entity; or
                        * at Level 2 - a party outside the Level 2 consolidated group, even if held in the name of