Commonwealth Consolidated Acts Commonwealth Consolidated Acts(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.