Document ID: chunk:federal_register_of_legislation:F2023L00728:front:0:p4
Version: federal_register_of_legislation:F2023L00728
Segment Type: other
Provision Reference: 
Character Range: 8371–11645

capital adequacy as defined in LPS 001.

       Chief Financial Officer means the chief financial officer of the life company, by whatever name called.

       financial year has the meaning in the Corporations Act 2001.

       general instruction guide refers to the general instruction guide set out in Attachment A of LRS 001.

       Life Act means the Life Insurance Act 1995.

       Principal Executive Officer means the principal executive officer of the life company, by whatever name called, and whether or not he or she is a member of the governing board of the entity.

       reporting period means a reporting period under subparagraph 7(a) or 7(b) or, if applicable, paragraph 8.

    18.         Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force from time to time.

Reporting Standard LRS 111.0

Adjustments and Exclusions

General instructions

Reporting tables

Tables described in this reporting standard list each of the data fields required to be reported. The data fields are listed sequentially in the column order that they will appear in the reported data set. Constraints on the data that can be reported for each field have also been provided.

Definitions

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

A
APRA-approved adjustment amount  If APRA is of the view that the Standard Method for calculating the APRA-approved adjustment type does not produce an appropriate outcome in respect of a life company fund, or if a life company fund has used inappropriate judgement or estimation in calculating the APRA-approved adjustment type, APRA may adjust the APRA-approved adjustment type calculation for that life company fund.

APRA-approved adjustment type    This means the type of APRA-approved adjustment.  Possible types are:

                                     * Prescribed Capital Amount;
                                     * Asset Risk Charge;
                                     * Insurance Risk Charge;
                                     * Asset Concentration Risk Charge;
                                     * Operational Risk Charge; and
                                     * Combined Stress Scenario Adjustment.

Asset Concentration Risk Charge  The Asset Concentration Risk Charge is the minimum amount of capital required to be held against asset concentration risks. The Asset Concentration Risk Charge relates to the risk resulting from investment concentrations in individual assets or large exposures to individual counterparties or groups of related counterparties resulting in adverse movements in the fund's capital base.

Asset Risk Charge                The Asset Risk Charge is the minimum amount of capital required to be held against asset risks. The Asset Risk Charge relates to the risk of adverse movements in the value of the fund's capital base due to credit or market risks.

                                 This is calculated in accordance with Prudential Standard LPS 114 Capital Adequacy: Asset Risk Charge.

C
Combined Stress Scenario Adjustment  This Combined Stress Scenario tests whether