Document ID: chunk:federal_register_of_legislation:F2023C00382:reg:66:p8
Version: federal_register_of_legislation:F2023C00382
Segment Type: reg
Provision Reference: reg 66 (pt 8/8)
Character Range: 331061–333581

Board issued this Standard to amend relevant Australian Accounting Standards so that for-profit public sector entities would be permitted to continue applying AASB 4 Insurance Contracts and AASB 1023 General Insurance Contracts until required to apply AASB 17. The Board is issuing another amending Standard to make public-sector-specific modifications to AASB 17 for application to annual periods beginning on or after 1 July 2026.
     BC3               Prior to these amendments, no date had been set for the application of AASB 17 by not-for-profit public sector entities: AASB 4 and AASB 1023 would just continue to apply in the absence of a withdrawal date. The amendments made by this Standard to AASB 17 and AASB 1057 Application of Australian Accounting Standards mean that not-for-profit public sector entities will be required to apply AASB 17 for annual periods beginning on or after 1 July 2026. The public sector modifications to AASB 17 will also assist not-for-profit public sector entities in applying AASB 17.
     BC4               When AASB 17 applies to all entities – for annual periods beginning on or after 1 July 2026 – AASB 4 and AASB 1023 will cease to have any application. Those Standards will then be repealed through AASB 17 and the paragraphs referring to AASB 4 and AASB 1023 that have been added or amended by this Standard will be deleted from the various Standards.

Withdrawal of AASB 1038 and Interpretation 1047
     BC5               In addition, the Board observed that AASB 1038 Life Insurance Contracts and Interpretation 1047 Professional Indemnity Claims Liabilities in Medical Defence Organisations are not relevant to public sector entities. Since private sector entities will be applying AASB 17 for annual periods beginning on or after 1 January 2023, AASB 1038 and Interpretation 1047 would become redundant for such periods.
     BC6               Therefore, this Standard also repeals AASB 1038 and supersedes Interpretation 1047 for annual reporting periods beginning on or after 1 January 2023.

Due process
     BC7               In March 2022, the Board issued a Fatal-Flaw Review (FFR) draft version of the Standard to propose the amendments described above.
     BC8               The comment period for the FFR draft closed on 8 June 2022. No formal submissions were received on the FFR draft; however, the Board received supportive informal feedback. Accordingly, the Board concluded that it would proceed with the amendments.

  [1]  CU denotes currency unit.