Document ID: chunk:federal_register_of_legislation:F2023L00599:body:0:p4
Version: federal_register_of_legislation:F2023L00599
Segment Type: other
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Character Range: 8616–11861

of the Appointed Actuary, in line with the requirements of Prudential Standard CPS 320 Actuarial and Related Matters.

    3.4.      Fair value approach

For capital reporting purposes, fair values must be determined in accordance with Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital.

For accounting reporting purposes, fair value has the same meaning as defined in AASB 13 Fair Value Measurement.

    3.5.      Units of measurement

Unless otherwise indicated by the specific item instructions, all reporting standards are to be prepared in whole Australian dollars (AUD) with no decimal place. Ratios are to be expressed to 2 decimal places. Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.

    3.6.      Definitions

Definitions for the individual data items are included in the specific reporting instructions for each of the reporting standards.

Definitions, unless specified otherwise, apply to all life insurers and friendly societies.  In a number of reporting standards, the term 'statutory fund' has been used to refer to a statutory fund of a life insurer or a benefit fund of a friendly society in the specific instructions. The term, 'general fund' has been used to refer to the shareholders' fund of a life insurer or the management fund of a friendly society in the specific instructions.

Additionally, reference to shareholders has been used to refer to 'members' of a mutual association or society.

    3.7.      Related parties

Where this term is used or referred to in the reporting standards, it has the same meaning as it does in AASB 124 Related Party Disclosures.

    4.             Audit requirements

The reporting standards must be subjected to audit review and testing as detailed in Prudential Standard LPS 310 Audit and Related Matters.

    5.             APRA Product Group classification

For consistency of reporting across the range of reporting standards applicable to life companies, APRA adopts a single set of product groupings for life insurers and friendly societies.  The appropriate APRA product groups must be used in accordance with the specific reporting standard.

The following tables specify the product groups applicable to life insurers and friendly societies.

    5.1.      Life insurers

The following product groups fall under participating and non-participating benefits. The expressions 'participating benefits' and 'non-participating benefits' are defined in the Life Act.

Within the relevant reporting standard, APRA has listed the product groups that apply.

Ref.   Product Group                                              Notes

L1      Conventional                                                Includes whole of life policies and endowment policies.

L2      Annuity with longevity risk                                 Annuities providing periodic payments that are dependent on the continuance of human life.

L3      Individual death – Stepped premium                          Death benefit within policies issued on an individual basis with stepped premium.

L3_1    Individual lump sum risk – Stepped premium                  Lump