Once the enterprise's entities are grouped into building blocks, and capital resources and requirements are computed for each building block, the enterprise's capital position is produced by generally adding up the capital positions of each building block. In order for the BBA's aggregation to function appropriately, and to reflect the Board's supervisory objectives, the BBA needs to make certain adjustments to the building blocks.
For instance, to compare similar activities across building blocks, the BBA would apply insurance capital rules consistently, without regard to permitted accounting practices granted by an individual state, thus uniformly applying statutory accounting principles as set forth by the NAIC. Measures to avoid double-counting, including double-leverage, that could arise from intercompany transactions would be built into the BBA's aggregation process.