Document ID: chunk:federal_register_of_legislation:F2023L00599:body:0:p3
Version: federal_register_of_legislation:F2023L00599
Segment Type: other
Provision Reference: 
Character Range: 5797–8899

reporting standards required to be lodged with APRA under the Reporting Standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 by companies registered under the Life Act. In this document 'life company' means any company registered under the Life Act, including a friendly society. References to 'life insurers' apply to life companies other than friendly societies.

Detailed instructions for the individual reporting items are provided in the specific instructions for each reporting standard.  These specific instructions need to be considered in conjunction with this document, the relevant reporting standards and prudential standards[1].

This General Instruction Guide covers all the reporting standards for life companies.

  2.     Reporting level

This section details the reporting levels for completion of each reporting standard.  Each reporting standard outlines whether reporting is required in respect of:

    * Each statutory fund for a life insurer and each approved benefit fund for a friendly society;

    * The shareholder fund for a life insurer and the management fund for a friendly society; and

    * The life company (i.e. company as whole for both life insurers & friendly societies).

  3.     Basis of preparation

    3.1.      Year to date

The financial information required to be reported must be reported as at the close of business for the last day of the reporting period, or for the year-to-date period ending at the close of business on the last day of the reporting period, as relevant.

    3.2.      General accounting basis

In completing the reporting standards, unless otherwise stated specifically, reporting life companies are to follow the basis consistent with the relevant Australian Accounting Standards. In particular, appropriate consideration must be given to the interpretation, the basis for measurement, and the netting between revenues/expenses items and financial assets/liabilities.

    3.3.      Actuarial valuation basis

All actuarial valuations and calculations included in, or used in the preparation of the reporting standards must be performed in accordance with the relevant prudential standards. The determination of policy liabilities must be in accordance with Prudential Standard LPS 340 Valuation of Policy Liabilities (LPS 340).

APRA recognises that full actuarial and other valuation procedures may not be used for valuing policy liabilities in all reporting periods. In such cases, reasonable estimation may be applied for valuing policy liabilities and such estimation needs to be based on the detailed valuation procedures. It must be noted that where such estimation processes have taken place, the approximating valuation methodology used by the life company must be subject to the advice of the Appointed Actuary, in line with the requirements of Prudential Standard CPS 320 Actuarial and Related Matters.

    3.4.      Fair value approach

For capital reporting purposes, fair values must be determined in accordance with Prudential Standard LPS 112 Capital Adequacy: