Document ID: chunk:federal_register_of_legislation:F2023L00702:front:0:p5
Version: federal_register_of_legislation:F2023L00702
Segment Type: other
Provision Reference: 
Character Range: 11060–14380

than one row in that table when reported.

Look-through treatment

For asset and liability items that have been treated on a look-through basis for the purpose of LPS 114, report the effective underlying exposures after adjustments for look-through as well as their resultant impacts on capital base respectively.

Derivative treatment

All asset and liability items should be reported gross of impacts from derivatives.  The fair value of open derivatives positions should be captured accordingly.

Assets and liabilities subject to stress

Exclude all components of assets that are either:

    * supporting investment-linked liabilities;
    * deducted from total assets for the purpose of determining capital base; or
    * subject to Asset Concentration Risk Charge

from the asset categories reported under this Reporting Standard.

Asset stress scenarios

Life companies are not required to report the components of impact on capital base for asset stress scenarios where it is determined that those scenarios would improve the capital base (i.e. result in a zero-risk charge component) as at the end of the relevant reporting period.

Life companies must report all asset stress scenarios that would give rise to a positive risk charge component.

Definitions

Terms highlighted in bold italics indicate that the definition is provided in these instructions.

A
Adjusted policy liabilities ceded (reinsurance assets)                              This is the difference between the adjusted policy liabilities (gross of reinsurance) and the adjusted policy liabilities (net of reinsurance). The adjusted policy liabilities are determined in accordance with Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital (LPS 112).

(Items subject to Asset Risk Charge type)
Adjusted policy liabilities (net of reinsurance) - exclude discretionary component  This is the amount of adjusted policy liabilities (net of reinsurance) determined in accordance with LPS 112.

(Items subject to Asset Risk Charge type)                                           This excludes the discretionary component of adjusted policy liabilities.

                                                                                    This amount is net of additional tax benefits / (liabilities) recognised from liability adjustments. This amount must be reduced by the value of all tax effects associated with liability adjustments. Adjusted pre-stress amount of deferred tax assets and deferred tax liabilities must be increased by the tax effects. This reporting approach is consistent with the Reporting Standard LRS 112 Determination of Capital Base (LRS 112).
Adjusted pre-stress amount                                                          This is the value of all relevant items of the reporting fund. This amount should be reported before the application of any designated asset stresses, net of the effect of any look-through adjustments and applying the fair value requirements outlined in LPS 112 and LPS 114.
Aggregated risk charge component                                                    This is the aggregated result of applying the aggregation formula over risk charge components in accordance with LPS 114. The formula allows for the likelihood of the asset risk stress scenarios occurring