CTHIn ForceLegislation
Health Insurance (prudential standard) determination No. 3 of 2024
Fair value adjustmentsFair value adjustments
Start here
Get a plain-English read of Fair value adjustments
Turn the raw legal text into a practical explanation grounded in Health Insurance (prudential standard) determination No. 3 of 2024.
Fair value adjustments
- A private health insurer may measure its non-financial assets, short-term receivables, and intercompany receivables and payables using the requirements in the Australian Accounting Standards rather than fair value.
- A private health insurer must deduct the difference between fair value and the reported value of each asset. This deduction can be a negative amount (that is, an addition to Common Equity Tier 1 Capital) if fair value exceeds reported value.
- A private health insurer must make any other deduction required by APRA in writing where APRA considers that fair values are not prudent or reliable.