PET - Plain English Taxonomy

Label: Financial Risk Management Capital Resilience Credit Risk Component Amount
TREF ID: DE5071
Data Type: xbrli:monetaryItemType
Period Type: instant
Balance Type: credit
Business Description & Guidance:
Report the Credit Risk component of Management Capital Resilience Reserve (RRCR), to be calculated as: RRCR    = (L' / A') x (DELTA ACRY + DELTA ACRD)Where:L'    =  Liabilities adjusted for the prescribed yield change in the discount rate used in their valuation, in accordance with the management capital standard.A'    =  Adjusted value of admissible assets (see below); DELTA ACRY       =  Credit Risk Yield Adjustment - an addition to the resilience reserves (see below) made in accordance with the management capital standards; andDELTA ACRD       =  Credit Risk Default Adjustment - an addition to the resilience reserves (see below) calculated using the prescribed Credit Risk Default factors as set out in the management capital standards.Adjusted value of admissible assets is the value of total admissible assets with resilience requirement adjusted for:- Credit Risk Yield Changes;- Prescribed Yield Changes (allowing for diversification factor);- Adverse Exchange Movement factor; and- Credit Risk Default factorsas determined in accordance with the management capital standards.Total admissible assets is the value of total assets as determined in accordance with the accounting standards less the value of those deemed to be inadmissible, as per the management capital standard. The inadmissible assets are: a) assets which have a value that is dependent upon the continuation of the business;b) holdings in an associated or subsidiary entity which is a Financial Services entity;c) non-realisable (in the context of the scenarios of adverse experience) intangible assets;d) other assets not measured at fair value in the regulatory financial statements; ande) the alignment necessary to ensure the remaining assets and the other liabilities are based on net market value.The Management Capital Resilience Reserve is determined as the additional amount that needs to be held before the happening of a prescribed set of changes in the economic environment ( as per the management capital standard), such that after the changes the admissible assets of the general fund are able to meet the liabilities of the general fund in accordance with the management capital standard.General Fund refers to the management fund for a friendly society or the shareholders' fund for other life companies, and is distinct and separate from the statutory funds of the life company. 

Usage
Form Labels
Label:
Credit Risk Component of Resilience Reserve