Document ID: chunk:federal_register_of_legislation:F2023C00194:body:0:p25
Version: federal_register_of_legislation:F2023C00194
Segment Type: other
Provision Reference: 
Character Range: 64727–67606

to be designated as "at fair value through profit or loss" under AASB 9;
shall be designated as "at fair value through profit or loss" under AASB 9, on first application of this Standard or on initial recognition.
15.5.1 An insurer applies AASB 127 to its investments in subsidiaries, joint ventures and associates when preparing separate financial statements.  Under AASB 127, in the parent's own financial statements, the investments in subsidiaries, joint ventures and associates can either be accounted for at cost or in accordance with AASB 9.
15.5.2 In the parent's separate financial statements, investments in subsidiaries, joint ventures and associates that are within the scope of AASB 127, that the insurer considers back general insurance liabilities, and that are permitted to be designated as "at fair value through profit or loss" under AASB 9, are designated as "at fair value through profit or loss" under AASB 9, on first application of this Standard or on initial recognition.

16 Non-insurance Contracts Regulated under the Insurance Act 1973

16.1 Non-insurance contracts regulated under the Insurance Act 1973 shall be treated under AASB 9 to the extent that they give rise to financial assets or financial liabilities respectively.  However, the financial assets and the financial liabilities that arise under these contracts shall be designated as "at fair value through profit or loss", on first application of this Standard, or on initial recognition of the financial assets or financial liabilities, where this is permitted under AASB 9.
16.1.1 In relation to non-insurance contracts regulated under the Insurance Act, an insurer applies AASB 9 to its financial assets and financial liabilities.
16.1.2 Under AASB 9 a financial asset is classified and measured at fair value through profit or loss when:
          (a) it does not meet the criteria specified in paragraph 4.1.2 of AASB 9 to be classified at amortised cost; or
          (b) it does not meet the criteria specified in paragraph 4.1.2A of AASB 9 to be classified at fair value through other comprehensive income; or
          (c) it is designated as "at fair value through profit or loss" upon initial recognition in accordance with paragraph 4.1.5 of AASB 9.
 AASB 1 First-time Adoption of Australian Accounting Standards permits entities to designate financial assets as "at fair value through profit or loss" on first application of the Standard.
16.1.3 Under AASB 9 a financial liability at fair value through profit or loss is a financial liability that meets either of the following conditions:
          (a) it meets the definition of held for trading; or
          (b) it is designated as "at fair value through profit or loss" upon initial recognition in accordance with paragraph 4.2.2, because either:
               (i) it eliminates or significantly reduces a measurement or