Insurance (prudential standard) determination No. 8 of 2006 - Prudential Standard GPS 120 - Assets in Australia
Asset revaluation reservesAsset revaluation reserves
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Asset revaluation reserves
- An amount representing 55 per cent of:
(a) pre-tax revaluation reserves of each of the following:[14]
(i) property not held at fair value; and
(ii) investments of the foreign insurer in subsidiaries not held at fair value, other than subsidiaries that APRA deems part of an Extended Licensed Entity (ELE) (refer to GPS 110).
The amount recognised must be net of any fair value gains and losses and any gains or losses on hedges offsetting revaluations included in reserves; and
(b) the post-acquisition reserves of the foreign insurer’s associates[15] (which includes, under equity accounting, the foreign insurer’s share of undistributed profits, plus any share of asset revaluations in associates or any other revaluation of investments in associates. The amount recognised must be net of fair value gains and losses and any gains or losses on hedges offsetting revaluations of investments in associates included in reserves)[16]
is excluded from being an asset in Australia.
Provisions applying to locally incorporated insurers and foreign insurers