59Allocation of operating profit etc.

59 Allocation of operating profit etc.

(1) A life company must allocate all of the operating profit or loss of a category of business of a statutory fund for a period. (2) A life company allocates an operating profit for a period by identifying in its financial statements prepared as at the end of the period: (a) the amount of the profit; and (b) the amount of the profit that should be treated as, or added to, Australian policy owners’ retained profits; and (c) the amount of the profit that should be treated as, or added to, overseas policy owners’ retained profits; and (d) the amount of the profit that should be treated as, or added to, shareholders’ retained profits (Australian participating); and (e) the amount of the profit that should be treated as, or added to, shareholders’ retained profits (overseas and non‑participating). (3) A life company allocates an operating loss for a period by identifying in its financial statements prepared as at the end of the period: (a) the amount of the loss; and (b) the amount representing the portion of the loss to be taken into account in reduction of Australian policy owners’ retained profits; and (c) the amount representing the portion of the loss to be taken into account in reduction of overseas policy owners’ retained profits; and (d) the amount representing the portion of the loss to be taken into account in reduction of shareholders’ retained profits (Australian participating); and (e) the amount representing the portion of the loss to be taken into account in reduction of shareholders’ retained profits (overseas and non‑participating). (4) A life company must allocate to shareholders’ capital of a statutory fund all capital payments made to the fund under section 37. (5) A company allocates a capital payment by: (a) identifying in its financial statements prepared as at the end of the period in which the payment was made the amount of the payment; and (b) identifying that amount as an amount that should be added to shareholders’ capital.