Document ID: chunk:federal_register_of_legislation:F2021C00205:body:0:p20
Version: federal_register_of_legislation:F2021C00205
Segment Type: other
Provision Reference: 
Character Range: 50803–53633

insurer need not provide the maturity analyses required by paragraph 39(a) and (b) of AASB 7 if it discloses information about the estimated timing of the net cash outflows resulting from recognised insurance liabilities instead. This may take the form of an analysis, by estimated timing, of the amounts recognised in the statement of financial position.
(ii) if an insurer uses an alternative method to manage sensitivity to market conditions, such as an embedded value analysis, it may use that sensitivity analysis to meet the requirement in paragraph 40(a) of AASB 7. Such an insurer shall also provide the disclosures required by paragraph 41 of AASB 7.
(e) information about exposures to market risk arising from embedded derivatives contained in a host insurance contract if the insurer is not required to, and does not, measure the embedded derivatives at fair value.
39A To comply with paragraph 39(c)(i), an insurer shall disclose either (a) or (b) as follows:
(a) a sensitivity analysis that shows how profit or loss and equity would have been affected if changes in the relevant risk variable that were reasonably possible at the end of the reporting period had occurred; the methods and assumptions used in preparing the sensitivity analysis; and any changes from the previous period in the methods and assumptions used. However, if an insurer uses an alternative method to manage sensitivity to market conditions, such as an embedded value analysis, it may meet this requirement by disclosing that alternative sensitivity analysis and the disclosures required by paragraph 41 of AASB 7.
(b) qualitative information about sensitivity, and information about those terms and conditions of insurance contracts that have a material effect on the amount, timing and uncertainty of the insurer's future cash flows.

Disclosures about the temporary exemption from AASB 9
39B An insurer that elects to apply the temporary exemption from AASB 9 shall disclose information to enable users of financial statements:
(a) to understand how the insurer qualified for the temporary exemption; and
(b) to compare insurers applying the temporary exemption with entities applying AASB 9.
39C To comply with paragraph 39B(a), an insurer shall disclose the fact that it is applying the temporary exemption from AASB 9 and how the insurer concluded on the date specified in paragraph 20B(b) that it qualifies for the temporary exemption from AASB 9, including:
(a) if the carrying amount of its liabilities arising from contracts within the scope of this Standard (ie those liabilities described in paragraph 20E(a)) was less than or equal to 90 per cent of the total carrying amount of all its liabilities, the nature and carrying amounts of the liabilities connected with insurance that are not liabilities arising from contracts within