Document ID: chunk:federal_register_of_legislation:F2023L00599:body:0:p7
Version: federal_register_of_legislation:F2023L00599
Segment Type: other
Provision Reference: 
Character Range: 17932–18964

no longer appropriate based on accounting and / or actuarial judgements.

    * Principle 4: The aggregate of the allocated numbers across APRA product groups must be consistent with AASB 17 numbers reported on a statutory basis.

    * Principle 5: A single allocation approach need not necessarily be applied.

Allocation approaches and allocation drivers must be clearly documented. This would support clarity and consistent application of the approaches and drivers for APRA product group reporting over time. Insurers must to prepare a document outlining how they have applied the allocation principles to allocate AASB 17 items to APRA product groups for APRA reporting.

For clarity, life insurers must not use allocation principles to allocate AASB 17 insurance and reinsurance assets and liabilities across the components of the Life Act reporting structure (for details, refer to the requirements outlined in LPS 340).

[1] Prudential standards determined by APRA under section 230A of the Life Insurance Act 1995.