Document ID: chunk:federal_register_of_legislation:F2024L00075:reg:38:p69
Version: federal_register_of_legislation:F2024L00075
Segment Type: reg
Provision Reference: reg 38 (pt 69/76)
Character Range: 228904–232000

should separately disclose in their financial statements items such as:
(a)                   insurance contract revenue, incurred claims expense, reinsurance expense and reinsurance recoveries recognised in the income statement;
(b)                   insurance contract liabilities and reinsurance contract assets recognised in the statement of financial position; and
(c)                   insurance contract cash inflows, reinsurance contract cash outflows, claims cash outflows and reinsurance recoveries cash inflows recognised in the statement of cash flows.
BC234        In relation to defined benefit members, the AASB noted that, depending on the conditions set out in the relevant trust deed, those members (or their beneficiaries) might be promised, for example, a lump sum benefit on retirement or resignation, a lump sum benefit on death or disablement, a pension on retirement for their remaining lifetime and/or a pension for the remaining lifetime of a spouse, and the pension may or may not be indexed in some way.  The AASB noted that the defined benefit member liability is effectively the sum of the expected values associated with the various ways in which members might be paid their benefits, and can be regarded as a single item made up of inter-related components.  Accordingly, the AASB concluded that liabilities and assets arising from insurance arrangements a superannuation entity provides to defined benefit members need not be presented separately from the entity's liabilities for such members' benefits in the statement of financial position.  Furthermore, unless there are explicit direct premiums, claims, reinsurance premiums or claim recoveries relating to insurance risks, the AASB concluded that amounts relating to insurance arrangements a superannuation entity provides to defined benefit members need not be presented separately in the income statement, statement of changes in member benefits or statement of cash flows.

Definitions
BC235        AAS 25 defines a number of terms and phrases relevant to a superannuation context.  However, some of these terms are no longer consistent with the definitions of the same or equivalent terms in Australian Accounting Standards.  In addition, the AASB decided that some of the terms and phrases defined in AAS 25 are no longer necessary.
BC236        Consistent with its current policies, the AASB decided:
(a)                   there is no need to define terms in AASB 1056 that are defined elsewhere or are similar to terms defined elsewhere in Australian Accounting Standards, such as 'general purpose financial report' and 'reporting date'; and
(b)                   to include in AASB 1056 definitions of specific relevance in a superannuation entity context, such as 'defined contribution member' and 'defined benefit member' based on the AAS 25 definitions for 'defined contribution plan' or 'defined benefit plan' (which themselves are not included in AASB 1056 because that entity-based dichotomy is no longer relevant).

Other issues raised on definitions
BC237        In ED 179, the AASB proposed