Document ID: chunk:federal_register_of_legislation:F2023L00622:body:0:p12
Version: federal_register_of_legislation:F2023L00622
Segment Type: other
Provision Reference: 
Character Range: 39561–44503

Common Equity Tier 1 Capital adjustments.

Regulatory adjustments to net assets                                               This is the total amount of regulatory adjustments applied on the fund's net assets specified in LPS 112.

                                                                                   Regulatory adjustments to net assets is calculated as the sum of:

                                                                                       * holdings of own Tier 1 Capital instruments;
                                                                                       * excess of deferred tax assets over deferred tax liabilities;
                                                                                       * fair value gains and losses from changes in own creditworthiness;
                                                                                       * goodwill and other intangible assets;
                                                                                       * surplus in defined benefit superannuation funds;
                                                                                       * deficit in defined benefit superannuation funds;
                                                                                       * reinsurance assets not subjected to an executed and legally binding contract;
                                                                                       * regulatory capital requirement of investments in subsidiary, JV and associate;
                                                                                       * assets under a fixed or floating charge;
                                                                                       * liability adjustments;
                                                                                       * fair value adjustments;
                                                                                       * adjustments to net assets of the fund due to shortfall in Tier 2 capital;
                                                                                       * other net asset adjustments; and
                                                                                       * seed capital receivable from approved benefit fund.
Regulatory capital requirement of investments in subsidiaries, JVs and associates  This is the deduction for regulatory capital requirement for investments in subsidiaries, joint ventures and associates as detailed in LPS 112.

Reinsurance assets not subjected to an executed and legally binding contract       This is the value of reinsurance assets (if positive) related to each reinsurance arrangement that, subject to a six-month grace period from risk inception, does not comprise an executed and legally binding contract.

Reinsurance premiums payable                                                       This is the amount related to reinsurance premiums due but not yet paid which has been recognised within insurance and reinsurance contract liabilities and assets reported on the balance sheet under AASB 17.

                                                                                   Premiums should be gross of commissions, before profit share rebates, and inclusive of stamp duty, policy fees, loadings and discounts. This definition is consistent with the definition of premium defined in LRS 750.0. Life companies may use approximate methods to report this item if premiums which meet the outlined definition are not readily available (corresponding adjustments also need to be made in other accounts receivable or other accounts payable).

                                                                                   Life companies must exclude any amount already allowed in adjusted policy liabilities to avoid double counting.

                                                                                   This item increases liability adjustments.

Reinsurance recoveries receivable                                                  This is the amount related to reinsurance recoveries due but not yet received which has been recognised within insurance and reinsurance contract liabilities and assets reported on the balance sheet under AASB 17.

                                                                                   Life companies must exclude any amount already allowed in adjusted policy liabilities to avoid double counting.

                                                                                   This item reduces liability adjustments.

Reserves from equity-settled share-based payments                                  This is the value of reserves from equity-settled share-based payments granted to employees as part of their remuneration package that meets the requirements of LRS 112. This only includes reserves relating