Document ID: chunk:federal_register_of_legislation:F2023L00622:body:0:p8
Version: federal_register_of_legislation:F2023L00622
Segment Type: other
Provision Reference: 
Character Range: 24429–27778

deferred tax assets (DTA) in excess of deferred tax liabilities (DTL) within the fund or life company as per the requirement of LPS 112.

                                                             This assumes that deferred tax benefits in one fund can be offset by the deferred tax liabilities of another fund provided that the offset is only used once across both funds.

                                                             The DTA and DTL include any tax effect arising from liability adjustments but exclude the tax effects arising from the asset and insurance stress scenarios considered. For example, the DTA must be increased by the tax benefit arising from liability adjustments whereas the DTL must be increased by the tax liability arising from liability adjustments.

                                                             The netting of DTA and DTL must only be applied where the life company has a legally enforceable right to set-off current tax assets against current tax liabilities.

F

Fair value adjustments                                            A regulated institution must deduct the difference between fair value and the reported value of each asset as per the requirements of LPS 112.

Fair value gains and losses from changes in own creditworthiness  This is the unrealised gains (and losses) from changes in the fair values of the liabilities of the fund or life company due to changes in creditworthiness of the life company.

Foreign currency translation reserve                              This is the value, of the reserve relating to exchange rate differences arising on translation of assets and liabilities to the presentation currency in accordance with Australian Accounting Standards.

G

General reserve                       General reserves are created from the appropriation of profits by the life company after the payment of all dividends and tax.

Goodwill and other intangible assets  This is the value of goodwill and any other intangible assets, as per LPS 112, net of adjustments to profit or loss reflecting changes arising from any impairment and amortisation.

                                      This also includes the component of investments in certain categories of subsidiaries, joint ventures and associates (as per LPS 112) that represents goodwill and any other intangible assets.

H

Holdings of own Additional Tier 1 Capital instruments     This is the total effective holdings of own Additional Tier 1 Capital instruments issued by the life company unless exempted by APRA or eliminated under Australian Accounting Standards.

Holdings of own Common Equity Tier 1 Capital instruments  This is the total effective holdings of own Common Equity Tier 1 Capital instruments issued by the life company, unless exempted by APRA or eliminated under Australian Accounting Standards.

                                                          This item must also include:

                                                              * capital instruments the life company could be contractually obliged to purchase; and
                                                              * unused portion of the limits agreed with APRA as per the requirements of LPS 112.
Holdings of own Tier 1 Capital instruments                This is the total effective holdings of