Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The net tangible asset value of a general insurance company, or a mutual affiliate company, that demutualises using a demutualisation method is, in accordance with this section:
(a) the amount of its assets on the applicable accounting day (see subsection (4));
reduced by:
(b) the amount of its liabilities (including future liabilities) arising from its business conducted before that day.
Australian accounting practice
(2) The amount of the company's assets and liabilities (other than future liabilities) is to be worked out according to Australian accounting practice.
Eligible actuary and Australian actuarial practice
(3) The amount of the company's future liabilities is to be worked out by an eligible actuary (see subsection 121AO(3)) according to Australian actuarial practice.
Applicable accounting day
(4) The applicable accounting day is:
(a) if an accounting period of the company ends on the demutualisation resolution day--that day; or
(b) in any other case--the last day of the most recent accounting period of the company ending before the demutualisation resolution day.
Adjustment for changes after applicable accounting day
(5) In a case covered by paragraph (4)(b), if any significant change in the amount of the company's assets or liabilities occurs between the applicable accounting day and the demutualisation resolution day, that amount is to be adjusted to take account of the change.
Continued business assumption
(6) In working out the net tangible asset value, it is to be assumed:
(a) that after the applicable accounting day the company will continue to conduct its business and any other activity in the same way as it did before that day, and that it will not conduct any different business or other activity; and
(b) that the demutualisation will not occur.