Document ID: chunk:federal_register_of_legislation:F2023L00684:body:0:p17
Version: federal_register_of_legislation:F2023L00684
Segment Type: other
Provision Reference: 
Character Range: 41605–44633

and impairment. Intangible assets are as defined in Australian Accounting Standards and include capitalised expenses and capitalised transaction costs. These include, but are not limited to:
 2. costs associated with debt raisings and other similar transaction-related costs that are capitalised as an asset;
 3. costs associated with issuing capital instruments if not already charged to profit and loss;
 4. capitalised information technology software costs; and
 5. other capitalised expenses including capitalised expenses of a general nature such as strategic business development initiatives. These include, in addition to the above listed items, other forms of transaction costs and like costs that are required to be deferred/capitalised and amortised as part of the measurement of assets and liabilities under Australian Accounting Standards.
 6. The balance of any transaction costs and like items that are capitalised and deferred as an asset must be netted off against the balance of any income deferred as a liability relating to the products giving rise to the capitalised transaction costs (i.e. only deferred costs and income in particular product portfolios may be netted). Any net balance of capitalised transaction costs must be deducted from Common Equity Tier 1 Capital in accordance with this Prudential Standard. Any surplus of fee income received from sources other than insurance policies (issued by general insurers and Lloyds) over deferred costs may be included in Common Equity Tier 1 Capital provided the fee income received satisfies the criteria in paragraph 34 of this Prudential Standard. Otherwise, up-front fee income received from sources other than insurance policies (issued by general insurers and Lloyds) must not be added to capital.
 7. An investment in a subsidiary, joint venture or associate that:
     1. is operationally independent;
     2. represents a genuine arm's-length investment;
     3. is not subject to prudential capital requirements; and
     4. does not undertake insurance business or business related to insurance business[15]
does not have its intangible assets (including the intangible component that could arise after or outside of acquisition) deducted under paragraph 15 of this Attachment.

Superannuation funds
 1. A regulated institution must deduct any surplus in a defined benefit superannuation fund, of which the regulated institution is an employer-sponsor, unless otherwise approved in writing by APRA. The surplus must be net of any associated deferred tax liability that would be extinguished if the assets involved become impaired or derecognised under Australian Accounting Standards. A regulated institution may apply to APRA to include a surplus as an asset for capital adequacy purposes where the regulated institution is able to demonstrate unrestricted and unfettered access to a fund surplus in a timely manner. Subject to APRA approval, the regulated institution may include the surplus in its capital base. This surplus will no longer be