Document ID: chunk:federal_register_of_legislation:F2023L00641:body:0:p18
Version: federal_register_of_legislation:F2023L00641
Segment Type: other
Provision Reference: 
Character Range: 66620–72279

insurer is an employer-sponsor, net of any associated deferred tax liabilities that would be extinguished if the assets involved become impaired or derecognised under Australian Accounting Standards. Where the extinguished deferred tax liability of the defined benefit superannuation fund exceeds the reported surplus, report this value as zero.

                                                Representations may be made to APRA to include the surplus in the capital base provided the criteria are met as per GPS 112.

T

Tax effect of net OCL and PL surplus / (deficit)                                          This is the tax effect of the technical provisions in surplus (positive figure) or deficit (negative figure) of those required under GPS 340.

                                                                                          Full tax benefits and liabilities must be assumed for the purposes of reporting this item but they must be included when assessing the adjustment for excess of deferred tax assets over deferred tax liabilities.

Tier 1 Capital                                                                            Tier 1 Capital is calculated as the sum of:

                                                                                              * Common Equity Tier 1 Capital; and
                                                                                              * Additional Tier 1 Capital.
Tier 1 Capital ratio                                                                      Tier 1 Capital ratio is calculated as:

                                                                                              * Tier 1 Capital;

                                                                                          divided by:

                                                                                              * prescribed capital amount.
Tier 2 Capital                                                                            Tier 2 Capital includes components of capital that, to varying degrees, fall short of the quality of Tier 1 Capital but nonetheless contribute to the overall strength of the fund and its capacity to absorb losses.

                                                                                          Tier 2 Capital is calculated as the sum of:

                                                                                              * eligible Tier 2 Capital instruments;
                                                                                              * adjustments and exclusions to Tier 2 Capital;
                                                                                              * transitional Tier 2 Capital; and

                                                                                          less:

                                                                                              * holdings of own Tier 2 Capital instruments.

Total deductions for assets specifically excluded from being considered inside Australia  This is the total of deductions for assets specifically excluded from being considered inside Australia in accordance with GPS 120.

                                                                                          This is calculated as the sum of:

                                                                                              * cash flow hedge reserves relating to hedging of items not recorded at fair value inside Australia;
                                                                                              * excess of deferred tax assets over deferred tax liabilities inside Australia;
                                                                                              * fair value gains and losses from changes in own creditworthiness inside Australia;
                                                                                              * goodwill inside Australia;
                                                                                              * other intangible assets inside Australia;
                                                                                              * surplus in defined benefit superannuation fund inside Australia;
                                                                                              * deficit in defined benefit superannuation fund inside Australia;
                                                                                              * reinsurance assets related to reinsurance contracts that do not meet the reinsurance documentation test in Australia;
                                                                                              * reinsurance assets receivable under reinsurance contracts that do not meet governing law requirements in Australia;
                                                                                              * regulatory capital requirement component of investments in subsidiaries, JVs and associates inside Australia;
                                                                                              * assets under a fixed or floating charge inside Australia;
                                                                                              * fair value adjustments inside Australia; and
                                                                                              * other adjustments to net assets in Australia.

Transitional Additional Tier 1 Capital                                                    This is the value