Financial Sector (Collection of Data) determination No. 2 of 2005
Item 8.B. Minority interest in subsidiarItem 8.B. Minority interest in subsidiaries on consolidation (only applicable for the Consolidated Insurance Group)
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Item 8.B. Minority interest in subsidiaries on consolidation (only applicable for the Consolidated Insurance Group)
This item only relates to the consolidated insurance group. This item is to be consistent with the value disclosed in GRF 300.0 Statement of Financial Position - Consolidated Insurance Group.
Sub total of items 4 - 8
This represents the total of items 4 – 8 that do not require APRA approval to be included in the determination of the capital base.
Item 10 ‘Non-cumulative irredeemable preference shares’ and Item 11 ‘Other “innovative” capital instruments’.
A capital instrument is not eligible for inclusion in Tier 1 capital to the extent that its inclusion will result in the aggregate amount of items “10 Non-cumulative irredeemable preference shares” and item “11 Other innovative capital instruments” exceeding 20% of aggregate Tier 1 capital (before required deductions). Any amount ineligible for inclusion as Tier 1 capital as a result of this limit will be eligible for inclusion as Tier 2 capital.
Item 12. Sub total of items 10 & 11
This represents the total of Items “10 & 11” and will be automatically calculated. In accordance with GPS 110 Capital Adequacy for General Insurers, these items can not exceed 20% of Total Tier 1 capital before deductions. Any excess will be advised by a message on the form and automatically included in Tier 2 capital under the item heading “Ineligible Tier 1 capital”.
Item 13. Total Tier 1 capital
This figure calculates the total Tier 1 capital (i.e. items 4 – 11). The total will automatically adjust for the 20% cap on item “10 and 11” being included in Tier 1 capital.
Deductions from Tier 1 capital
Assets of an identifiable intangible nature and goodwill (i.e. unidentifiable intangible asset) and any net deferred tax assets (i.e. Future Income Tax Benefits net of any Provision for Deferred Income Tax) are to be deducted from Total Tier 1 capital in the line items provided. These are explained further below.
Item 14. Goodwill
The value of goodwill that is to be disclosed in this line item is the sum of the following:
For the Licensed Insurer:
The total amortised value of goodwill (unidentifiable intangible asset) as recognised in item “11 in GRF 300.0 Statement of Financial Position; plus
The component of the value of ‘Total other investments’ (i.e. investments in controlled entities) which represents purchased goodwill (i.e. current value less value of identifiable net tangible assets). This is reported in line item 9.5.A. of GRF 300.0 Statement of Financial Position).
For the Consolidated Insurance Group:
The total amortised value of goodwill (unidentifiable intangible asset) as recognised in item 11 in GRF 300.0 Statement of Financial Position.
Item 15. Identifiable Intangible Assets
Disclose the value of any identifiable intangible assets recognised in GRF 300.0 Statement of Financial Position. The value disclosed must equate to the amortised balance of identifiable Intangible assets disclosed in the Statement of Financial Position.
Item 16. Future income tax benefits/Deferred Tax Assets (net of any Deferred Tax Liabilities)
Disclose the value of FITB/Deferred Tax Assets recognised in GRF 300.0 Statement of Financial Position, net of any PDIT (provision for deferred income tax)/Deferred tax liabilities that are also recognised in GRF 300.0 Statement of Financial Position. The value disclosed must not be negative (i.e. a net PDIT balance after deducting FITB). Accordingly if the balance of PDIT exceeds FITB, zero must be disclosed.
Item 17. Other deductions required by APRA
No items will generally be included in this field. Items will generally only be disclosed in this line where APRA has specifically requested or directed the reporting insurer to deduct a specific item from Tier 1 capital.
Item 18. Total Deductions from Tier 1 capital
Represents the total of items 14 to 17
Item 19. Adjusted Total Tier 1 capital
This figure is automatically calculated and represents Item “13 Total Tier 1 capital” less item 18.
Tier 2 Capital
Items 20 – 41
Prior approval from APRA is required before an insurer is able to include instruments covered by these items in this form in its Tier 2 capital.
Tier 2 capital is limited to a maximum of 100% of an insurers eligible Tier 1 capital (net of deductions) and is divided into Upper Tier 2 and Lower Tier 2 capital.
A capital instrument is not eligible for inclusion in Tier 2 capital to the extent that its inclusion will result in the aggregate amount of eligible Lower Tier 2 capital exceeding 50% of eligible Tier 1 capital (net of deductions).
Capital instruments with a limited life (i.e. Lower Tier 2 capital) must have an original maturity greater than 5 years. These instruments will also be subject to amortisation over the last four years of their life according to the schedule set out in paragraph 17 of GGN 110.1 Measurement of Capital Base and as reflected in the associated form for these instructions.
Item 20. Ineligible Tier 1 capital
This item refers to excess of items “10 Non-cumulative irredeemable preference shares” and item “11 Other innovative capital instruments” due to 20% cap on inclusion in Tier 1. The form will automatically include the excess in this field.
Item 21. Other Tier 2 capital approved by APRA
No items will generally be included in this field. Items will generally only be disclosed in this line where APRA has specifically requested or directed the reporting insurer.
Item 26. Total Upper Tier 2 Capital
Represents the total of items 20 – 25
Item 42. Total Lower Tier 2 Capital
Represents the total of items 27 – 41 Total lower Tier 2 capital must not exceed 50% of Total Adjusted Tier 1 capital. This limit is automatically calculated by the form and will notify where it has been breached.
Item 43. Total Tier 2 Capital
Represents the total of items “26 Total Upper Tier 2 Capital” and Item “42 Total Lower Tier 2 Capital”. Total Tier 2 capital must not exceed the amount of ‘Adjusted Total Tier 1 capital’. This limit is automatically calculated by the form and will notify where it has been breached.
Item 44. Total Capital Base
Represents the total of ‘Adjusted Total Tier 1 capital’ and Item “43 Total Tier 2 Capital”. This amount is used in the calculation of the insurer’s minimum capital requirement.
Note: While a capital base is calculated for the consolidated insurance group, a MCR is not calculated for the consolidated insurance group at this stage.
Subdivision Item 8.B. Minority interest in subsidiar - Financial Sector (Collection of Data) determination No. 2 of 2005 - Item 8.B. Minority interest in subsidiaries on consolidation (only applicable for the Consolidated Insurance Group) | Zoe