Document ID: chunk:federal_register_of_legislation:F2023L00702:front:0:p13
Version: federal_register_of_legislation:F2023L00702
Segment Type: other
Provision Reference: 
Character Range: 41082–44650

capital base is less than zero then the risk charge component is equal to the absolute value of the impact on capital base.

                                                               If the impact on capital base is greater than zero then the risk charge component is zero.

S
Seed capital                               This is the value of seed capital that has been transferred from the management fund of a friendly society to its benefit fund.

(Items subject to Asset Risk Charge type)
Stress scenario amount                     This the contribution of the relevant items towards the change in capital base under stress scenario type.

                                           Specifications of the stresses are determined in accordance with LPS 114.
Stress scenario type                       This consists of the stress scenarios that must be applied to individual items subject to Asset Risk Charge type under LPS 114. The scenarios are:

                                               * real interest rates upwards stress;
                                               * real interest rates downwards stress;
                                               * expected inflation upwards stress;
                                               * expected inflation downwards stress;
                                               * currency upwards stress;
                                               * currency downwards stress;
                                               * equity stress;
                                               * property stress;
                                               * credit spreads stress; and
                                               * default stress.
Subordinated debt                          This is the value of the subordinated debt that has been issued by the fund.

(Items subject to Asset Risk Charge type)  This must exclude any subordinated debt recognised as Tier 2 Capital. This amount must be reported under Tier 2 Capital.

T
Tier 2 Capital                       Tier 2 Capital includes components of capital that, to varying degrees, fall short of the quality of Tier 1 Capital but nonetheless contribute to the overall strength of the fund and its capacity to absorb losses.
Total off-balance sheet assets       This is the impact on capital base from the changes in off-balance sheet assets under the respective asset risk stress scenarios, to the extent that the off-balance sheet assets affect the on-balance sheet assets and liabilities.
Total off-balance sheet liabilities  This is the impact on capital base from the changes in off-balance sheet liabilities under the respective asset risk stress scenarios, to the extent that the off-balance sheet assets affect the on-balance sheet assets and liabilities.

U
Unlisted equities                          This is the value of equity interests in companies not listed on any stock exchange, after allowance for look-through (if applicable).

(Items subject to Asset Risk Charge type)  This also includes equities held within Australia and overseas, which are not treated differently for the purpose of determining Asset Risk Charge.

Specific instructions

Table 1: Adjusted Balance Sheet - Pre-Stress

Reporting basis

This table applies to life companies including friendly societies. This table applies to statutory, shareholder, benefit and management funds.

Report all relevant items within the balance sheet of the fund as listed under items subject to Asset Risk Charge type. The reported figures are before the