Label: | Financial Risk Management Capital Resilience Total Amount |
TREF ID: | DE5144 |
Data Type: | xbrli:monetaryItemType |
Period Type: | instant |
Balance Type: | credit |
Business Description & Guidance: |
Report the total Management Capital Resilience Reserve (RR) for this reporting party, to be calculated as:RR = L' x [A / A'] ' L;Where:A = Admissible Assets with a resilience requirement (see below) prior to prescribed change; L = Liabilities prior to prescribed change are the total liabilities as determined in accordance with the management capital prudential standard, prior to any prescribed changes to assumptions in that standard used to calculate them.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); 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 reporting party are able to meet the policy owner and other liabilities of the statutory fund. There is no resilience requirement where the policy owner liabilities of the statutory fund move in harmony with the assets supporting them. |
Usage
Form | Labels | |
Label:
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Total Resilience Reserve |