Document ID: chunk:federal_register_of_legislation:F2023L00673:body:0:p13
Version: federal_register_of_legislation:F2023L00673
Segment Type: other
Provision Reference: 
Character Range: 32555–34288

deferred tax assets net of deferred tax liabilities from the capital base, these amounts must be adjusted to include all additional tax assets and liabilities accruing over the 12 months following the reporting date.
9.             The taking of discretionary management actions in the single scenario can only be assumed to the extent that they are appropriate, justifiable and equitable in the adverse conditions assumed.
10.         For a statutory fund that has liabilities for life policies that provide participating benefits or discretionary additions to benefits, the life company must use a single scenario where the direction of the asset risk stresses for real interest rates and expected inflation are both down, if this scenario would result in a higher capital charge.

[1]  Refer to subsection 21(1) of the Act.
[2]  Refer to section 16ZD of the Act.
[3]  This item must separately identify any transition amount approved by APRA under the capital adequacy standards.
[4]  A fund containing variable annuity business is not required to separately disclose an Asset Risk Charge, Insurance Risk Charge and aggregation benefit.
[5]  For an EFLIC, the requirements relating to reductions in capital base must be applied at the level of each statutory fund of the Australian operations.
[6]  'Financial year' means the last four quarters for which the life company was required to submit quarterly returns in accordance with reporting standards made under the Financial Sector (Collection of Data) Act 2001 to APRA preceding the date of the proposed dividend.
[7]  Such a company must take into account the factors in paragraph 7 of this Attachment to determine E within the range of 0.0 to 0.3.
[8]  As defined in LPS 115.