Document ID: chunk:federal_register_of_legislation:F2023L00717:body:0:p5
Version: federal_register_of_legislation:F2023L00717
Segment Type: other
Provision Reference: 
Character Range: 11136–13968

to life insurers that select the VSA led method in accordance with Prudential Standard LPS 340 Valuation of Policy Liabilities (LPS 340), and relates to how AASB 17 Insurance Contracts (AASB 17) reporting components would be completed if policy liabilities are derived using the VSA led method.

This table is based on the definition of VSA outlined in LPS 340, and links the VSA reporting components to the AASB 17 roll-forward reporting components. This linkage does not mean that the amounts should be the same between the two bases. The VSA basis and the AASB 17 basis are two separate constructs but the linkage outlines the relationship and differences between the two bases.

This table collects data items net of reinsurance for both the Life Act and AASB 17 reporting components (unless otherwise stated). Insurers are to report the data items by offsetting reinsurance components against gross components.

This table collects data items gross of tax (unless otherwise stated). Tax must be reported separately under the relevant tax data items.

This table is not completed for statutory funds whose policy liabilities are valued using the accounting standard led method.

Unless otherwise stated, report all information as at the reporting date.

Discount rate

When completing the Life Act reporting components, insurers are to use the net discount rate approach (i.e. the discount rate that is net of Funds Under Management (FUM) based investment expenses and tax on investment earnings net of FUM-based investment expenses) and complete the requested data fields. Insurers may use approximations if insurers cannot readily complete the relevant data fields because, for example, insurers use the gross discount rate approach (i.e. discount rate gross of FUM expenses and investment earnings tax).

Units of measurement

Report the dollar values in this table in whole Australian dollars.

Insurers must report data items as positive numbers if the data items result in a higher balance for the component in question. For example, premiums inflow results in a higher VSA balance so this must be reported as a positive number.

Similarly, insurers must report data items as negative numbers if the data items result in a lower balance for the component in question. For example, Contractual Service Margin and Risk Adjustment release result in lower balances of Contractual Service Margin and Risk Adjustment so they must be reported as negative numbers.

Columns 1 to 6    Report the value for each of the items listed below which relates to policy liability as defined in the Life Act (Life Act policy liability) by APRA class of business and by investment account benefit (as defined in the Life Act) and benefits other than investment account benefits (other benefits).

Columns 7 to 12   Report the value