Document ID: chunk:federal_register_of_legislation:F2023L00015:reg:21:p1
Version: federal_register_of_legislation:F2023L00015
Segment Type: reg
Provision Reference: reg 21 (pt 1/101)
Character Range: 32600–35837

21                    For legal purposes, this legislative instrument commences on 30 June 2026.

Appendix E [FOR AASB 17]
Australian implementation guidance for public sector entities
This appendix is an integral part of AASB 17 Insurance Contracts. It describes the application of paragraphs Aus6.1 and Aus6.2. The appendix applies only to public sector entities and does not affect the application of AASB 17 by private sector entities.

Introduction

     E1                    AASB 17 Insurance Contracts incorporates International Financial Reporting Standard IFRS 17 Insurance Contracts, issued by the International Accounting Standards Board. Consequently, the text of AASB 17 is generally expressed from the perspective of private sector entities. The AASB prepared this Appendix to explain and illustrate the application of the principles of paragraphs Aus6.1 and Aus6.2 of the Standard by public sector entities in relation to identifying public sector arrangements that give rise to insurance contracts that fall within the scope of AASB 17.

     E2                    Judgement needs to be exercised in applying the pre-requisites, indicators and other considerations based on each entity's circumstances.

     E3                    For the purposes of this Appendix, in some cases relatively generic terms are used, rather than the more specific defined terms in AASB 17, because the guidance is focused on identifying the public sector activities to which AASB 17 applies. For example, this Appendix uses the term:

          (a)                    'arrangement' on the basis that some public sector arrangements will fall within the scope of AASB 17 and be insurance contracts, but some will not; and

          (b)                   'participant' on the basis that participants in arrangements that are insurance contracts will be policyholders, but participants in public sector arrangements that do not will fall within the scope of AASB 17 will not be policyholders.

     E4                    The guidance in paragraphs B7–B16 of Appendix B on distinguishing between insurance risks and other risks applies equally to public sector entities. However, because public sector entities often undertake a wider range of risk-bearing activities than private sector entities, additional guidance is needed to identify insurance contracts in a public sector context.

     E5                    Governments often arrange to provide support as a result of events that affect individuals and communities. Some of these arrangements involve transactions that are best accounted for as insurance contracts, while many of these arrangements relate to a government's role in providing services such as social benefits, universal health care and disaster relief. In determining which of these types of arrangements give rise to insurance contracts that fall within the scope of AASB 17, an entity considers the pre-requisites, indicators and the other considerations outlined in paragraphs E6–E36.

Identifying insurance contracts in a public sector context (paragraphs Aus6.1 and Aus6.2)

Applying the pre-requisites, indicators and other considerations

     E6                    In accordance with paragraph Aus6.1, a public