category A capital (common equity)

NycxBattleNycxBattle
in OSFI.MCT

My question is regarding section 2.1

_Under Policyholders' Equity:

Line 410: Residual Interest (Non-Stock) ← shout-out to desert70!
Under Shareholders' Equity: (include everything except Preferred Shares on Line 520)

Line 510: Common Shares
Line 530: Contributed Surplus
Line 540: Other Capital
Line 550: Retained Earnings
Line 560: Nuclear and Other Reserves
Line 570: AOCI
_
Since we include line 410, should we include line 310 as a negative.

Thanks in advance.

Comments

  • grahamgraham

    No, this is purely an equity calculation and it's done by directly summing the components as listed on the Statement of Liabilities and Equity. The fundamental accounting equation is:

    • Assets = Liabilities + Equity

    So another way to calculate equity is to rearrange this equation to:

    • Equity = Assets- Liabilities

    Using that equation, all the liabilities (including line 310) would be subtracted from the assets to calculate the equity indirectly but that is not what you need to do when calculating category A capital.

  • NycxBattleNycxBattle

    Take make sense. Thanks for answering me on the long weekend. Happy long weekend

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