Document ID: chunk:federal_register_of_legislation:F2023L00717:body:0:p21
Version: federal_register_of_legislation:F2023L00717
Segment Type: other
Provision Reference: 
Character Range: 84400–90703

AASB 17 SRPN and share capital.

            This is the amount of interim and terminal bonus distributed from Life Act PRP, Life Act SRPP, Life Act SRP (overseas par), shareholder retained profits associated with non-participating business under AASB 17 (AASB 17 SRPN) and share capital.                                                                                                                                                                                                                                                                                                                      This is the amount of interim and terminal bonus distributed from EFCF (PRP portion), AASB 17 SRPP, AASB 17 SRP (overseas par), AASB 17 SRPN and share capital.

            While bonus distributions are typically made from Life Act PRP, sections 62 and 63 of the Life Act do allow shareholder retained profits and capital to be distributed to participating policy owners.                                                                                                                                                                                                                                                                                                                                                                   While bonus distributions are typically made from EFCF (PRP portion), sections 62 and 63 of the Life Act do allow shareholder retained profits and capital to be distributed to participating policy owners.

            For distributions from AASB 17 SRPN and share capital, they could be sourced from within the statutory fund or outside of the statutory fund (i.e. from other funds). Deductions to AASB 17 SRPN and share capital relating to those distributions are to be reported under Reporting Standard LRS 340.1 Retained Profits and Share Capital (LRS 340.1).                                                                                                                                                                                                                 For distributions from AASB 17 SRPN and share capital, they could be sourced from within the statutory fund or outside of the statutory fund (i.e. from other funds). Deductions to AASB 17 SRPN and share capital relating to those distributions are to be reported under LRS 340.1.

            Interim and terminal bonus is recognised as both an allocation of profit (reported in L5.1) and a distribution of profit (reported in this item).                                                                                                                                                                                                                                                                                                                                                                                                                        Bonus distributions decrease EFCF (PRP portion), AASB 17 SRPP, AASB 17 SRP (overseas par) and share capital.

            Bonus distributions decrease Life Act PRP, Life Act SRPP, Life Act SRP (overseas par), AASB 17 SRPN and share capital.
            Item A11.2                                                                                                                                                                                                                                                                                                                                                Report impact of interim and terminal bonus offset on EFCF (non-PRP portion) and RA.

                                                                                                                                                                                                                                                                                                                                                                      This item has been included so that life insurers can offset the interim and terminal bonus payments that were reported within A2.2, A2.3 and A2.4 (claim payments).

                                                                                                                                                                                                                                                                                                                                                                      If the interim and terminal bonus payments are not offset, they would be double counted (within the claims outflow from EFCF (non-PRP portion) and as retained profit distributions from EFCF (PRP portion)).

                                                                                                                                                                                                                                                                                                                                                                      This is the amount of increase in EFCF (non-PRP portion) and RA needed to offset interim and terminal bonus reported as claim payments.

                                                                                                                                                                                                                                                                                                                                                                      Interim and terminal bonus offsets increase EFCF (non-PRP portion) and RA (if required).
Item L11.2  Report declared bonus distributions from Life Act PRP, Life Act SRPP, Life Act SRP (overseas par), AASB 17 SRPN and share capital.                                                                                                                                                                                                                        Item A11.3                                                                                                                                                                                                     Report declared bonus distributions from EFCF (PRP portion), AASB 17 SRPP, AASB 17