Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p10
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 10/76)
Character Range: 50510–53677

the statement of cash flows.
AG45           Depending on the conditions set out in the relevant trust deed, defined benefit members or beneficiaries might be promised, for example, a lump sum benefit on retirement or resignation, a lump sum benefit on death or disablement, a pension on retirement for their remaining lifetime and/or a pension for the remaining lifetime of a spouse, and the pension may or may not be indexed in some way.  The defined benefit member liability is effectively the sum of the expected values associated with the various ways in which members might be paid their benefits.  It is relevant to consider the defined benefit member liability as a single item made up of inter-related components, rather than to seek to identify particular components for presentation purposes, such as an insurance component.  Accordingly, liabilities and assets arising from insurance arrangements a superannuation entity provides to defined benefit members need not be presented as a separate liability in the statement of financial position.  Furthermore, unless there are explicit direct premiums, claims, reinsurance premiums or claim recoveries relating to insurance risks, revenues and/or expenses relating to insurance arrangements a superannuation entity provides to defined benefit members need not be presented separately in the income statement or statement of changes in member benefits.
AG46           Liabilities arising from insurance arrangements a superannuation entity provides to defined contribution members shall be presented separately from the entity's liabilities for such members' benefits in the statement of financial position.
AG47           Assets arising from the reinsurance arrangements of a superannuation entity related to defined contribution members shall be presented separately.
AG48           Insurance contract liabilities and reinsurance contract assets are recognised and measured in accordance with the approach to measuring defined benefit member liabilities, whether they relate to defined contribution or defined benefit members.  Shortcut techniques could be applied to measure insurance contract liabilities, for example, deferring and matching premiums over the period, provided the amount is not materially different from the amount that would be determined using the approach to measuring defined benefit member liabilities.
AG49           If a reinsurance asset is impaired, its carrying amount shall be reduced accordingly and an impairment expense recognised in the income statement.  A reinsurance asset is impaired if, and only if:
(a)                   there is objective evidence, as a result of an event that occurred after initial recognition of the reinsurance asset, that the amounts due from the reinsurer may not be received under the terms of the contract; and
(b)                   that event has a reliably measurable impact on the amounts receivable from the reinsurer.

Preparation and presentation of consolidated financial statements
AG50           AASB 10 Consolidated Financial Statements, as amended by AASB 2013-5 Amendments to Australian Accounting Standards – Investment Entities,