Document ID: chunk:federal_register_of_legislation:F2023C00382:front:0:p95
Version: federal_register_of_legislation:F2023C00382
Segment Type: other
Provision Reference: 
Character Range: 249999–252889

contracts (paragraph D4);
(c) …

Insurance contracts
D4 [Deleted]A first–time adopter may apply the transitional provisions in AASB 4 Insurance Contracts, AASB 1023 General Insurance Contracts and AASB 1038 Life Insurance Contracts. AASB 4 restricts changes in accounting policies for insurance contracts, including changes made by a first–time adopter.

AASB 3 Business Combinations (August 2015, as amended but excluding AASB 16)

The following amendments apply only when AASB 17 is not applied in conjunction with AASB 16 Leases.
Paragraphs 17, 20, 21 and 35 are amended. After paragraph 31, a heading and paragraph 31A are added. Paragraph 64N is added.

Classifying or designating identifiable assets acquired and liabilities assumed in a business combination
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17 This Standard provides two an exceptions to the principle in paragraph 15:
(a) classification of a lease contract as either an operating lease or a finance lease in accordance with AASB 117 Leases.; and
(b) [deleted]classification of a contract as an insurance contract in accordance with AASB 4 Insurance Contracts.
The acquirer shall classify those contracts on the basis of the contractual terms and other factors at the inception of the contract (or, if the terms of the contract have been modified in a manner that would change its classification, at the date of that modification, which might be the acquisition date).
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Measurement principle
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20 Paragraphs 24–3131A specify the types of identifiable assets and liabilities that include items for which this Standard provides limited exceptions to the measurement principle.

Exceptions to the recognition or measurement principles
21 This Standard provides limited exceptions to its recognition and measurement principles. Paragraphs 22–3131A specify both the particular items for which exceptions are provided and the nature of those exceptions. The acquirer shall account for those items by applying the requirements in paragraphs 22–3131A, which will result in some items being:
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Insurance contracts
31A The acquirer shall measure a group of contracts within the scope of AASB 17 Insurance Contracts acquired in a business combination, and any assets for insurance acquisition cash flows as defined in AASB 17, as a liability or asset in accordance with paragraphs 39 and B93–B95F of AASB 17, at the acquisition date.
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Bargain purchases
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35 A bargain purchase might happen, for example, in a business combination that is a forced sale in which the seller is acting under compulsion. However, the recognition or measurement exceptions for particular items discussed in paragraphs 22–3131A may also result in recognising a gain (or change the amount of a recognised gain) on a bargain purchase.
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Effective date
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64N AASB 17, issued in July 2017, amended paragraphs 17, 20, 21, 35 and B63, and after paragraph 31 added a heading and paragraph