Document ID: chunk:federal_register_of_legislation:F2023L00622:body:0:p11
Version: federal_register_of_legislation:F2023L00622
Segment Type: other
Provision Reference: 
Character Range: 34752–39943

Premiums receivable                              This is the amount related to insurance premiums due but not yet received which has been recognised within insurance and reinsurance contract liabilities and assets reported on the balance sheet under AASB 17.

                                                 Premiums should be gross of reinsurance and commissions, before profit share rebates, and inclusive of stamp duty, policy fees, loadings and discounts. This definition is consistent with the definition of premium defined in Reporting Standard LRS 750.0 Claims and Disputes (LRS 750.0). Life companies may use approximate methods to report this item if premiums which meet the outlined definition are not readily available (corresponding adjustments also need to be made in other accounts receivable or other accounts payable).

                                                 Life companies must exclude any amount already allowed in adjusted policy liabilities to avoid double counting.

                                                 This item reduces liability adjustments.

Prescribed capital amount                        Prescribed capital amount is defined in LPS 110.

Prescribed capital amount coverage               Prescribed capital amount coverage is calculated as:

                                                     * capital base;

                                                 divided by:

                                                     * prescribed capital amount.
Prescribed capital amount coverage (net assets)  For a fund, prescribed capital amount coverage (net assets) is calculated as the sum of:

                                                     * net assets of the fund (after seed capital adjustments) multiplied by 1.2; and
                                                     * Tier 2 Capital

                                                 divided by:

                                                     * prescribed capital amount.

                                                 For a life company, prescribed capital amount coverage (net assets) is calculated as the sum of:

                                                     * Additional Tier 1 Capital;
                                                     * Tier 2 Capital; and
                                                     * net assets (less equity components classified as Additional Tier 1 Capital) multiplied by 1.2

                                                 divided by:

                                                     * prescribed capital amount.

R

Regulatory adjustments to Common Equity Tier 1 capital                             This is the total amount of regulatory adjustments applied to the life company's Common Equity Tier 1 Capital specified in LPS 112.

                                                                                   Regulatory adjustments to Common Equity Tier 1 Capital is calculated as the sum of:

                                                                                       * holdings of own Common Equity Tier 1 Capital instruments;
                                                                                       * excess of deferred tax assets over deferred tax liabilities;
                                                                                       * fair value gains and losses from changes in own creditworthiness;
                                                                                       * goodwill and other intangible assets;
                                                                                       * surplus in defined benefit superannuation funds;
                                                                                       * deficit in defined benefit superannuation funds;
                                                                                       * reinsurance assets not subjected to an executed and legally binding contract;
                                                                                       * regulatory capital requirement of investments in subsidiary, JV and associate;
                                                                                       * assets under a fixed or floating charge;
                                                                                       * liability adjustments;
                                                                                       * fair value adjustments;
                                                                                       * adjustments to Common Equity Tier 1 Capital due to shortfall in Additional Tier 1 capital; and
                                                                                       * other Common Equity Tier 1 Capital adjustments.

Regulatory adjustments to net assets                                               This is the total amount of regulatory adjustments applied on the fund's net assets specified in LPS 112.

                                                                                   Regulatory adjustments to net assets is calculated as the sum of: