Document ID: chunk:federal_register_of_legislation:F2023L00694:body:0:p7
Version: federal_register_of_legislation:F2023L00694
Segment Type: other
Provision Reference: 
Character Range: 16772–19635

fund as payments. EFCF must include expected future distributions of surplus to members of the benefit fund.
(b)          The component of EFCF apportioned to the management fund must value expected future management fee income from the benefit fund as receipts. The friendly society must value expected future directly attributable expenses of the management fund (allocated in respect of the benefit fund) as payments.
(c)          The apportionment of CSM (if any) and RA components between benefit fund and management fund must be made having regard to the unearned profits and non-financial risks of each fund.
(d)          A friendly society must not apportion a negative CSM or RA to the benefit fund.
(e)          The approach to apportioning CSM and RA must be applied consistently over time but may be changed if the approach is no longer appropriate.
(f)           If distributions of surplus from the benefit fund must only be made to the members of the fund, CSM and RA typically relate to the excess of expected future management fee income from the benefit fund over expected future directly attributable expenses of the management fund, and the CSM and RA must be apportioned to the management fund and not to the benefit fund.
(g)          Where the value of expected future directly attributable expenses (allocated in respect of the benefit fund) exceeds the value of expected future management fee income from the benefit fund, and there is no CSM or the amount of CSM available to be apportioned is lower than the amount that would apply if the benefit fund were to be valued as a stand-alone entity, a negative CSM may be apportioned to the management fund such that the benefit fund can be apportioned an amount of CSM up to the amount that would apply if the benefit fund were to be valued as a stand-alone entity.
27.         Where the reinsured life contract liabilities in respect of the policies of an approved benefit fund are determined under AASB 17, the friendly society must:
(a)          value the reinsured policy liabilities of the benefit fund as if the benefit fund was a stand-alone entity; and
(b)          record a policy liability for the management fund, determined as the difference between those reinsured life contract liabilities and the reinsured policy liabilities of the benefit fund.
28.         APRA may require a friendly society to make a separate valuation of policy liabilities of approved benefit funds and/or change the allocation method for approved benefit funds.

Life insurer non-participating business
29.         Policy liabilities in respect of life insurer non-participating business are to be determined in accordance with  Australian Accounting Standards, subject to meeting the requirements in Part A of this Prudential Standard.

Life insurer participating business
30.         For determining