Document ID: chunk:federal_register_of_legislation:F2023L00622:body:0:p5
Version: federal_register_of_legislation:F2023L00622
Segment Type: other
Provision Reference: 
Character Range: 11155–16038

is provided in these instructions.

A

Accumulated other comprehensive income and other disclosed reserves                        This is the sum of all other comprehensive income and disclosed reserves and is calculated as the sum of:

                                                                                               * unrealised gains or losses recognised on balance sheet;
                                                                                               * reserves from equity-settled share-based payments;
                                                                                               * cumulative unrealised gains or losses on hedges offsetting gains or losses in Common Equity Tier 1 Capital;
                                                                                               * foreign currency translation reserve;
                                                                                               * general reserve; and
                                                                                               * other gains and losses in accumulated comprehensive income and other disclosed reserves.

Additional tax benefits / (liabilities) from liability adjustments                         This is the value of all tax effects associated with liability adjustments before any tax effects.

                                                                                           Tax benefits reduce liability adjustments whereas tax liabilities increase liability adjustments.

                                                                                           Full tax benefits / liabilities must be assumed for the purposes of reporting this item but life companies must adjust deferred tax assets and / or liabilities by the tax benefits / liabilities for the purposes of assessing the adjustment for excess of deferred tax assets over deferred tax liabilities.

Additional Tier 1 Capital                                                                  This is the value of capital instruments issued by the life company that meet the criteria for inclusion in Additional Tier 1 Capital in accordance with the relevant prudential standard, and which are not included in Common Equity Tier 1 Capital. This is net of regulatory adjustments specified in LPS 112.

                                                                                           Additional Tier 1 Capital is calculated as the sum of:

                                                                                               * Additional Tier 1 Capital instruments;
                                                                                               * adjustments and exclusions to Additional Tier 1 Capital;
                                                                                               * transitional Additional Tier 1 Capital; and
                                                                                               * excess mutual equity interests

                                                                                           less:

                                                                                               * holdings of own Additional Tier 1 Capital instruments; and
                                                                                               * adjustments to Additional Tier 1 Capital due to shortfall in Tier 2 capital.
Additional Tier 1 Capital instruments                                                      This is the value of capital instruments issued by the life company that meet the eligibility criteria for Additional Tier 1 Capital but not the criteria for the higher quality capital, i.e. Common Equity Tier 1 Capital.

Adjusted policy liabilities deficit / (surplus)                                            This is the amount by which the adjusted policy liabilities determined in accordance with LPS 112 is larger (or smaller) than net life contract liabilities.

                                                                                           Net life contract liabilities is the sum of the insurance, reinsurance and investment contract liabilities (net of insurance and reinsurance assets) disclosed in the statutory accounts.

                                                                                           The deficit increases liability adjustments.

Adjustments and exclusions to Additional Tier 1 Capital                                    This is the amount of adjustments applied to Additional Tier 1 Capital that are specific to the application of the requirements in LPS 112.

Adjustments and exclusions to Common Equity Tier 1 Capital                                 This is the amount of adjustments applied to Common Equity Tier 1 Capital that are