Document ID: chunk:federal_register_of_legislation:F2023L00717:body:0:p30
Version: federal_register_of_legislation:F2023L00717
Segment Type: other
Provision Reference: 
Character Range: 122066–124951

in AASB 17 liabilities.

3. Impact of investment, FUM expenses and tax on AASB 17 liabilities

Item A3.1  Report insurance finance income / expense and effects of movements in FX – impact on EFCF (non-PRP portion), RA and CSM.

           This is actual investment earnings (includes realised and unrealised gains and losses) and FX on assets supporting participating business (or discount roll-forward of AASB 17 liabilities for non-VFA method).

           This must be reported gross of A3.2 and A3.3 (i.e. FUM expenses and tax).

           Positive investment earnings / FX gains increase AASB 17 liabilities.
Item A3.2  Report FUM expenses – impact on EFCF (non-PRP portion), RA and CSM.

           This is actual FUM expenses on assets supporting participating business.

           This applies if FUM expenses are reflected when setting the discount rate under AASB 17. Otherwise, report nil under this item.

           This excludes FUM expenses on assets supporting EFCF (PRP portion) (reported in A4.2).

           If FUM expenses are reflected in the discount rate instead of being treated as part of future cash flows, AASB 17 liabilities decrease if a payable balance is recognised or cash is paid directly without recognising a payable balance.
Item A3.3  Report current and deferred tax due to A3.1 and A3.2 – impact on EFCF (non-PRP portion), RA and CSM.

           This is current tax and deferred tax expense due to A3.1 and A3.2 (i.e. investment earnings and FUM expenses).

           This applies if tax due to A3.1 and A3.2 are reflected when setting the discount rate under AASB 17. Otherwise, report nil under this item.

           AASB 17 liabilities decrease if a tax payable / deferred tax liability balance is recognised or cash is paid directly without recognising a tax payable balance.

4. Components that impact retained profits

Item A4.1  Report insurance finance income / expense and effects of movements in FX – impact on EFCF (PRP portion), AASB 17 SRPP and AASB 17 SRP (overseas par).

           This is actual allocated investment earnings (includes realised and unrealised gains and losses) and FX on assets supporting EFCF (PRP portion), AASB 17 SRPP and AASB 17 SRP (overseas par).

           This must be reported gross of A4.2 and A4.4 (i.e. FUM expenses and tax).

           Positive investment earnings / FX gains increase EFCF (PRP portion), AASB 17 SRPP and AASB 17 SRP (overseas par).
Item A4.2  Report FUM expenses – impact on EFCF (PRP portion), AASB 17 SRPP and AASB 17 SRP (overseas par).

           This is actual allocated FUM expenses on assets supporting EFCF (PRP portion), AASB 17 SRPP and AASB 17 SRP (overseas par).

           EFCF (PRP portion), AASB 17 SRPP and AASB 17 SRP (overseas par) decrease if a payable balance is recognised or cash is paid directly without recognising a payable balance.
Item A4.3