Life Insurance (prudential standard) determination No. 11 of 2010 - Prudential Standard LPS 600 - Statutory Funds
Starting amount for shareholders’ capitaStarting amount for shareholders’ capital
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Starting amount for shareholders’ capital
- For the purposes of the definition of “shareholders’ capital” in subsection 61(1) of the Act, the starting amount is the initial starting amount under Part 1 plus the IFRS starting amount adjustment under Part 2:
Part 1
The initial starting amount is the sum of the following amounts:
(a) the aggregate shareholders’ capital of the statutory fund; and
(b) such part of the aggregate retained profits of each category of business of the statutory fund representing participating business or non-participating business as is not allocated to retained profits under Part 1 of paragraph 39 to 42.
Part 2
The IFRS starting amount adjustment is:
(a) the remaining balance of the IFRS change in net assets of each category of business of the statutory fund as is not applied to vary any of the other initial starting amounts under Part 2 of paragraphs 39 to 42.