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AASB Standard  AASB 2022-9
               December 2022

Amendments to Australian Accounting Standards – Insurance Contracts in the Public Sector

Obtaining a copy of this Accounting Standard
This Standard is available on the AASB website: www.aasb.gov.au.

Australian Accounting Standards Board
PO Box 204
Collins Street West
Victoria   8007
AUSTRALIA

Phone:  (03) 9617 7600
E-mail:  standard@aasb.gov.au
Website:  www.aasb.gov.au

Other enquiries
Phone:  (03) 9617 7600
E-mail:  standard@aasb.gov.au

COPYRIGHT

© Commonwealth of Australia 2022

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission. Requests and enquiries concerning reproduction and rights should be addressed to The Managing Director, Australian Accounting Standards Board, PO Box 204, Collins Street West, Victoria 8007.

ISSN 1036-4803

Contents

PREFACE
ACCOUNTING STANDARD
AASB 2022-9 AMENDMENTS TO AUSTRALIAN ACCOUNTING STANDARDS – INSURANCE CONTRACTS IN THE PUBLIC SECTOR

from paragraph
OBJECTIVE 1
APPLICATION 3
AMENDMENTS TO AASB 17 6
AMENDMENTS TO AASB 1050 16
REVERSAL OF TEMPORARY CONSEQUENTIAL AMENDMENTS SET OUT IN AASB 2022-8 17
COMMENCEMENT OF THE LEGISLATIVE INSTRUMENT 21
APPENDIX
E  Australian implementation guidance for public sector entities

BASIS FOR CONCLUSIONS

Australian Accounting Standard AASB 2022-9 Amendments to Australian Accounting Standards – Insurance Contracts in the Public Sector is set out in paragraphs 1 – 21.  All the paragraphs have equal authority.

Preface

Standards amended by AASB 2022-9

This Standard makes amendments to AASB 17 Insurance Contracts (July 2017), AASB 1050 Administered Items (December 2007) and the other Standards listed in paragraph 2 of the Standard.

Main features of this Standard

   Main requirements

This Standard amends AASB 17 to include modifications that apply to public sector entities. Those modifications relate to providing public sector entities with:

(a)                    pre-requisites, indicators and other considerations that need to be judged to identify arrangements that fall within the scope of AASB 17 in a public sector context;
(b)                   an exemption from sub-grouping onerous versus non-onerous contracts at initial recognition;
(c)                    an exemption from sub-grouping contracts issued no more than a year apart;
(d)                   an amendment to the initial recognition requirements so that they do not depend on when contracts become onerous;
(e)                    guidance on coverage periods in a public sector context, which has consequences for determining the cash flows used to measure insurance liabilities and the pattern of revenue recognition;
(f)                    an accounting policy choice to measure liabilities for remaining coverage applying the premium allocation approach; and
(g)                   a transition requirement grandfathering the existing classification of arrangements constituting a liability for settlement of claims incurred before the liability was acquired in a transfer as either a liability for incurred claims within the scope of AASB 17 or a provision within the scope of AASB 137 Provisions, Contingent Liabilities