Document ID: chunk:federal_register_of_legislation:F2024L00884:body:0:p9
Version: federal_register_of_legislation:F2024L00884
Segment Type: other
Provision Reference: 
Character Range: 21140–24194

part of their remuneration package provided that:
(i)            the share or share options granted relate only to the ordinary shares of the life company;
(ii)         the ordinary shares comprise only new ordinary shares to be issued by the life company, or new ordinary shares to be issued by the life company to employees, or new ordinary shares already issued by the life company to employees for this specific purpose; and
(iii)       there are no circumstances under which such remuneration can be converted into another form (e.g. cash).
(c)          foreign currency translation reserve;
(d)          general reserves;
(e)          cumulative unrealised gains or losses on hedges[8] offsetting gains or losses included in Common Equity Tier 1 Capital (such as movements in the currency value of foreign-currency-denominated hedging instruments that offset movements in foreign-currency-denominated items recognised in the foreign currency translation reserve). This includes fair value gains or losses on derivatives representing effective economic hedges of assets; and
(f)           any other gains and losses in accumulated other comprehensive income and other disclosed reserves that may be specified by APRA in writing.
For the purpose of paragraph 38(b) any other reserves associated with share-based payments must be excluded from the capital base.
39.         Revaluation of property holdings on the balance sheet may be included as part of other disclosed reserves only if:
(a)          the property is owned by the life company;
(b)          the property comprises only land and buildings;
(c)          the property is readily available to be sold. A property need not be scheduled for sale, nor need a sale be intended. However, such a property must be capable of being readily sold within six months were a decision made to sell the property;
(d)          the reserves are shown as a component of equity in the audited published financial accounts of the life company;
(e)          the revaluations are reliable, in accordance with Australian Accounting Standards, and subject to audit or review consistent with Australian Auditing and Assurance Standards. A property must be measured at fair value in accordance with Australian Accounting Standards; and
(f)           the amount of reserves incorporates the full effect of any fair value gains or losses and any gains or losses on hedges offsetting revaluations of the property included in the reserves.

Additional Tier 1 Capital
40.         Additional Tier 1 Capital comprises high quality components of capital that satisfy the following essential characteristics:
(a)          provide a permanent and unrestricted commitment of funds;
(b)          are freely available to absorb losses;
(c)          rank behind the claims of policy owners and other more senior creditors in the event of winding up of the issuer; and
(d)          provide for fully discretionary capital distributions.
41.         Additional Tier 1 Capital consists of:
(a)          instruments issued by a life