Interpretation

1. Terms that are defined in Prudential Standard CPS 001 Defined terms appear in bold the first time they are used in this Prudential Standard.

2. In this Prudential Standard, unless a contrary intention appears, a reference to an Act, Regulations, Prudential Standard, Australian Accounting Standard is a reference to the instrument as in force from time to time.

3. Unless otherwise indicated:

   1. The term ‘accounts receivables’ will be used to refer to premiums, reinsurance recoveries, non-reinsurance recoveries and other accounts receivable that have been recognised within the insurance and reinsurance contract liabilities and assets reported on the balance sheet under AASB 17 Insurance Contracts; and
   2. the term ‘accounts payables’ will be used to refer to claims, reinsurance premiums, reinsurance recoveries, non-reinsurance recoveries and other accounts payable that have been recognised within the insurance and reinsurance contract liabilities and assets reported on the balance sheet under AASB 17 Insurance Contracts.

4. For the purposes of this Prudential Standard:

   1. a ‘component of capital’ is any form of capital defined in this Prudential Standard as eligible for inclusion in the capital base;

   2. a ‘category of capital’ is a group of components of capital;

   3. the ‘net assets’ of a health benefits fund, general fund, or private health insurer is a reference to the net assets of the fund, or private health insurer determined under the private health insurer’s prudential reporting to APRA under the Financial Sector (Collection of Data) Act 2001 (FSCODA).