A worked example of a group of companies entering the consolidation regime, where the group includes a life company. Issues include:
- The treatment of deferred acquisition costs
- How the cost setting rules apply to:- assets held within the VPST and SEA; assets held within the ordinary business and how the rules differ in respect of participating business
- Contrasting the meaning of 'retained cost base assets' for life companies with non life companies
- How the definitions of 'retained cost base assets' and 'reset cost base assets' reconcile to Division 320 valuation methodologies
- The treatment of deferred acquisition costs
- How the cost setting rules apply to:- assets held within the VPST and SEA; assets held within the ordinary business and how the rules differ in respect of participating business
- Contrasting the meaning of 'retained cost base assets' for life companies with non life companies
- How the definitions of 'retained cost base assets' and 'reset cost base assets' reconcile to Division 320 valuation methodologies