Document ID: chunk:federal_register_of_legislation:F2023C00382:front:0:p105
Version: federal_register_of_legislation:F2023C00382
Segment Type: other
Provision Reference: 
Character Range: 276305–279100

the appropriate treatment (see paragraph 2.1(e)):
(a) Although a financial guarantee contract meets the definition of an insurance contract in AASB 4 AASB 17 (see paragraph 7(e) of AASB 17) if the risk transferred is significant, the issuer applies this Standard. Nevertheless, if the issuer has previously asserted explicitly that it regards such contracts as insurance contracts and has used accounting that is applicable to insurance contracts, the issuer may elect to apply either this Standard or AASB 1023 AASB 17 to such financial guarantee contracts. ...
(b) Some credit-related guarantees do not, as a precondition for payment, require that the holder is exposed to, and has incurred a loss on, the failure of the debtor to make payments on the guaranteed asset when due. An example of such a guarantee is one that requires payments in response to changes in a specified credit rating or credit index. Such guarantees are not financial guarantee contracts as defined in this Standard, and are not insurance contracts as defined in AASB 4 AASB 17. Such guarantees are derivatives and the issuer applies this Standard to them.
(c) …

Designation eliminates or significantly reduces an accounting mismatch
 …
B4.1.30 The following examples show when this condition could be met. In all cases, an entity may use this condition to designate financial assets or financial liabilities as at fair value through profit or loss only if it meets the principle in paragraph 4.1.5 or 4.2.2(a):
(a) an entity has liabilities under insurance contracts within the scope of AASB 17 (the measurement of which whose measurement incorporates current information (as permitted by paragraph 24 of AASB 4) and financial assets that it considers to be related and that would otherwise be measured at either fair value through other comprehensive income or amortised cost.
(b) ...

AASB 15 Revenue from Contracts with Customers (December 2014, as amended)

Paragraph 5 is amended.

Scope
5 An entity shall apply this Standard to all contracts with customers, except the following:
(a) …
(b) insurance contracts within the scope of AASB 4 AASB 17 Insurance Contracts. However, an entity may choose to apply this Standard to insurance contracts that have as their primary purpose the provision of services for a fixed fee in accordance with paragraph 8 of AASB 17;
(c) …

In Appendix C, paragraph C1C is added.

Effective date
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C1C AASB 17, issued in July 2017, amended paragraph 5. An entity shall apply that amendment when it applies AASB 17.

AASB 101 Presentation of Financial Statements (July 2015, as amended)

Paragraphs 7, 54 and 82 are amended. Paragraph 139R is added.

Definitions
7 ...
Other comprehensive income comprises items of income and expense (including reclassification adjustments) that