Document ID: chunk:federal_register_of_legislation:F2021C00205:body:0:p8
Version: federal_register_of_legislation:F2021C00205
Segment Type: other
Provision Reference: 
Character Range: 19227–22081

Instruments: Recognition and Measurement rather than AASB 9 for annual periods beginning before 1 January 2023. An insurer that applies the temporary exemption from AASB 9 shall:
(a) use the requirements in AASB 9 that are necessary to provide the disclosures required in paragraphs 39B–39J of this Standard; and
(b) apply all other applicable Standards to its financial instruments, except as described in paragraphs 20A–20Q, 39B–39J and 46–47 of this Standard.
20B An insurer may apply the temporary exemption from AASB 9 if, and only if:
(a) it has not previously applied any version of AASB 9[2], other than only the requirements for the presentation of gains and losses on financial liabilities designated as at fair value through profit or loss in paragraphs 5.7.1(c), 5.7.7–5.7.9, 7.2.14 and B5.7.5–B5.7.20 of AASB 9; and
(b) its activities are predominantly connected with insurance, as described in paragraph 20D, at its annual reporting date that immediately precedes 1 April 2016, or at a subsequent annual reporting date as specified in paragraph 20G.
20C An insurer applying the temporary exemption from AASB 9 is permitted to elect to apply only the requirements for the presentation of gains and losses on financial liabilities designated as at fair value through profit or loss in paragraphs 5.7.1(c), 5.7.7–5.7.9, 7.2.14 and B5.7.5–B5.7.20 of AASB 9. If an insurer elects to apply those requirements, it shall apply the relevant transition provisions in AASB 9, disclose the fact that it has applied those requirements and provide on an ongoing basis the related disclosures set out in paragraphs 10–11 of AASB 7 (as amended by AASB 9 (2010)).
20D An insurer's activities are predominantly connected with insurance if, and only if:
(a) the carrying amount of its liabilities arising from contracts within the scope of this Standard, AASB 1023 and AASB 1038, which includes any deposit components or embedded derivatives unbundled from insurance contracts applying paragraphs 7–12 of this Standard, is significant compared to the total carrying amount of all its liabilities; and
(b) the percentage of the total carrying amount of its liabilities connected with insurance (see paragraph 20E) relative to the total carrying amount of all its liabilities is:
(i) greater than 90 per cent; or
(ii) less than or equal to 90 per cent but greater than 80 per cent, and the insurer does not engage in a significant activity unconnected with insurance (see paragraph 20F).
20E For the purposes of applying paragraph 20D(b), liabilities connected with insurance comprise:
(a) liabilities arising from contracts within the scope of this Standard, AASB 1023 and AASB 1038, as described in paragraph 20D(a);
(b) non-derivative investment contract liabilities measured at fair value through profit or loss applying AASB 139 (including those designated