Document ID: chunk:federal_register_of_legislation:F2023C00382:front:0:p30
Version: federal_register_of_legislation:F2023C00382
Segment Type: other
Provision Reference: 
Character Range: 76904–79872

cash flows (see paragraph B125).
107 For insurance contracts other than those to which the premium allocation approach described in paragraphs 53–59 or 69–70A has been applied, an entity shall disclose the effect on the statement of financial position separately for insurance contracts issued and reinsurance contracts held that are initially recognised in the period, showing their effect at initial recognition on:
(a) the estimates of the present value of future cash outflows, showing separately the amount of the insurance acquisition cash flows;
(b) the estimates of the present value of future cash inflows;
(c) the risk adjustment for non-financial risk; and
(d) the contractual service margin.
108 In the disclosures required by paragraph 107, an entity shall separately disclose amounts resulting from:
(a) contracts acquired from other entities in transfers of insurance contracts or business combinations; and
(b) groups of contracts that are onerous.
109 For insurance contracts other than those to which the premium allocation approach described in paragraphs 53–59 or 69–70A has been applied, an entity shall disclose when it expects to recognise the contractual service margin remaining at the end of the reporting period in profit or loss quantitatively, in appropriate time bands. Such information shall be provided separately for insurance contracts issued and reinsurance contracts held.
109A An entity shall disclose quantitatively, in appropriate time bands, when it expects to derecognise an asset for insurance acquisition cash flows applying paragraph 28C.

Insurance finance income or expenses
110 An entity shall disclose and explain the total amount of insurance finance income or expenses in the reporting period. In particular, an entity shall explain the relationship between insurance finance income or expenses and the investment return on its assets, to enable users of its financial statements to evaluate the sources of finance income or expenses recognised in profit or loss and other comprehensive income.
111 For contracts with direct participation features, the entity shall describe the composition of the underlying items and disclose their fair value.
112 For contracts with direct participation features, if an entity chooses not to adjust the contractual service margin for some changes in the fulfilment cash flows, applying paragraph B115, it shall disclose the effect of that choice on the adjustment to the contractual service margin in the current period.
113 For contracts with direct participation features, if an entity changes the basis of disaggregation of insurance finance income or expenses between profit or loss and other comprehensive income, applying paragraph B135, it shall disclose, in the period when the change in approach occurred:
(a) the reason why the entity was required to change the basis of disaggregation;
(b) the amount of any adjustment for each financial statement line item affected; and