Document ID: chunk:federal_register_of_legislation:F2023L00644:body:0:p5
Version: federal_register_of_legislation:F2023L00644
Segment Type: other
Provision Reference: 
Character Range: 12498–16108

Where the value of Tier 2 Capital as defined in HPS 112 is insufficient to cover the value of deductions required to be made from this category of capital, the shortfall must first be deducted from Additional Tier 1 Capital and, if Additional Tier 1 Capital is insufficient to cover the value of deductions required, the remaining value must be deducted from Common Equity Tier 1 Capital.
Adjustments to net assets of the fund due to shortfall in Tier 2 Capital                   This is the value, as at the relevant date, of any deductions (refer to HPS 112) from the net assets of the fund due to a shortfall in Tier 2 Capital to absorb the required deductions from this category of capital.
Amounts payable on reinsurance contracts held                                              This is the value of amounts payable on reinsurance contracts held. This includes reinsurance premiums that are due to be paid, all unpaid instalment reinsurance premiums, reinsurer's portion of recoveries, and commissions due to reinsurers. This also includes deposits withheld from reinsurers.
                                                                                           For reinsurance contracts held, if there is a legal right of set-off within the underlying reinsurance contracts, report the amount after set-off against other amounts receivable from the reinsurer under that reinsurance contract. If the amount is a net receivable position from the reinsurer, report the amount under amounts receivable on reinsurance contracts held. If there is not a legal right of set-off, report the amount payable without set-off. Also refer to the definition of amounts receivable on reinsurance contracts held.
                                                                                           Amounts payable on reinsurance contracts held is netted against reinsurance contract assets or added to reinsurance contract liabilities under AASB 17.
                                                                                           This must exclude any amount already allowed in insurance liabilities determined under HPS 340 to avoid double counting.
Amounts receivable on reinsurance contracts held                                           This is the value of amounts receivable on reinsurance contracts held. This includes reinsurance recoverables on paid claims.
                                                                                           For reinsurance contracts held, if there is a legal right of set-off within the underlying reinsurance contracts, report the amount after set-off against other amounts payable to the reinsurer under that reinsurance contract. If the amount is a net payable position to the reinsurer, report the amount under amounts payable on reinsurance contracts held. If there is not a legal right of set-off, report the receivable amount without set-off. Also refer to the definition of amounts payable on reinsurance contracts held.
                                                                                           Amounts receivable on reinsurance contracts held is netted against reinsurance contract liabilities or added to reinsurance contract assets under AASB 17.
                                                                                           This must exclude any amount already allowed insurance liabilities determined under Prudential Standard HPS 340 Insurance Liability Valuation (HPS 340) to avoid double counting.
Assets under a fixed or floating charge                                                    This is the