Table 2: Distribution of RBA Accounting Loss in 2021/22 $ billion  – Accounting loss  −36.7  – Absorbed by: – Unrealised profits reserve  −0.5  – Reserve Bank Reserve Fund  −15.4  – Transferred to accumulated losses  −20.8  – Other reserves – Net equity  8.4 −12.4  If any commercial entity had negative equity, assets would be insufficient to meet liabilities and therefore the company would not be a going concern.
But central banks are not like commercial entities. Unlike a normal business, there are no going concern issues with a central bank in a country like Australia. Under the Reserve Bank Act, the government provides a guarantee against the liabilities of the Reserve Bank.