Document ID: chunk:federal_register_of_legislation:F2023C00382:front:0:p33
Version: federal_register_of_legislation:F2023C00382
Segment Type: other
Provision Reference: 
Character Range: 85049–87984

statements to evaluate the nature, amount, timing and uncertainty of future cash flows that arise from contracts within the scope of AASB 17. Paragraphs 122–132 contain requirements for disclosures that would normally be necessary to meet this requirement.
122 These disclosures focus on the insurance and financial risks that arise from insurance contracts and how they have been managed. Financial risks typically include, but are not limited to, credit risk, liquidity risk and market risk.
123 If the information disclosed about an entity's exposure to risk at the end of the reporting period is not representative of its exposure to risk during the period, the entity shall disclose that fact, the reason why the period-end exposure is not representative, and further information that is representative of its risk exposure during the period.
124 For each type of risk arising from contracts within the scope of AASB 17, an entity shall disclose:
(a) the exposures to risks and how they arise;
(b) the entity's objectives, policies and processes for managing the risks and the methods used to measure the risks; and
(c) any changes in (a) or (b) from the previous period.
125 For each type of risk arising from contracts within the scope of AASB 17, an entity shall disclose:
(a) summary quantitative information about its exposure to that risk at the end of the reporting period. This disclosure shall be based on the information provided internally to the entity's key management personnel.
(b) the disclosures required by paragraphs 127–132, to the extent not provided applying (a) of this paragraph.
126 An entity shall disclose information about the effect of the regulatory frameworks in which it operates; for example, minimum capital requirements or required interest-rate guarantees. If an entity applies paragraph 20 in determining the groups of insurance contracts to which it applies the recognition and measurement requirements of AASB 17, it shall disclose that fact.

All types of risk—concentrations of risk
127 An entity shall disclose information about concentrations of risk arising from contracts within the scope of AASB 17, including a description of how the entity determines the concentrations, and a description of the shared characteristic that identifies each concentration (for example, the type of insured event, industry, geographical area, or currency). Concentrations of financial risk might arise, for example, from interest-rate guarantees that come into effect at the same level for a large number of contracts. Concentrations of financial risk might also arise from concentrations of non-financial risk; for example, if an entity provides product liability protection to pharmaceutical companies and also holds investments in those companies.

Insurance and market risks—sensitivity analysis
128 An entity shall disclose information about sensitivities to changes in risk variables arising from