Document ID: chunk:federal_register_of_legislation:C2024A00052:clause:6_5
Version: federal_register_of_legislation:C2024A00052
Segment Type: clause
Provision Reference: sch 6 cl 5
Character Range: 37652–38717

5  Section 321‑20
Repeal the section, substitute:

321‑20  How the value of adjusted liability for incurred claims is worked out
  Work out the value, at the end of an income year, of a *general insurance company's adjusted *liability for incurred claims under *general insurance policies in this way:

      Method statement
           Step 1. Use the *applicable insurance contracts accounting standard to measure, at the end of the income year, the company's *liability for incurred claims under *general insurance policies, but when doing so disregard any claims handling costs that are neither attached to, nor directly attributable to, a particular claim.
           Step 2. Using that standard, reduce the result from step 1 by so much of that result as the company expects at the end of the income year to recover under a reinsurance contract:

                (a) within the meaning of that standard; but
                (b) that is not one to which subsection 148(1) of the Income Tax Assessment Act 1936 (about reinsurance with non‑residents) applies.