Capital

An undertaking shall disclose information that enables users to evaluate the undertaking’s objectives, policies and processes for managing capital.

The undertaking discloses the following:

1. qualitative information about its objectives, policies and processes for managing capital, including:

a description of what comprises its capital;

when an undertaking is subject to externally imposed capital requirements, the nature of those requirements and how those requirements are incorporated into the management of capital; and

iii. how it is meeting its objectives for managing capital.

2. summary quantitative data about what comprises its capital. Some undertakings regard some financial liabilities (eg some forms of subordinated debt) as part of capital. Other undertakings regard capital as excluding some components of equity (eg components arising from cash flow hedges).

3. any changes in (1) and (2) from the previous period.

4. whether during the period it complied with any externally imposed capital requirements to which it is subject.

5. when the undertaking has not complied with such externally imposed capital requirements, the consequences of such non-compliance.

These disclosures shall be based on the information provided internally to the undertaking’s key management personnel.

An undertaking may manage capital in a number of ways and be subject to a number of different capital requirements and restrictions.

For example, a conglomerate may include undertakings that undertake insurance activities and banking activities, and those undertakings may also operate in several jurisdictions.

The undertaking shall disclose separate information for each capital requirement (rather than aggregate information) to which the undertaking is subject where this would be aid the understanding of users.