Document ID: chunk:federal_register_of_legislation:F2023C00194:body:0:p2
Version: federal_register_of_legislation:F2023C00194
Segment Type: other
Provision Reference: 
Character Range: 3189–6375

17.6
Nature and Extent of Risks Arising from Insurance Contracts 17.7
Liability Adequacy Test 17.8
Other Disclosures 17.9.1
Transitional Provisions 18.1
Definitions 19.1
Appendix
A  Definition of an Insurance Contract
COMPILATION DETAILS

Australian Accounting Standard AASB 1023 General Insurance Contracts (as amended) is set out in paragraphs AusCF1 – 19.2 and Appendix A.  All the paragraphs have equal authority.  Paragraphs in bold type state the main principles.  Terms defined in this Standard are in italics the first time they appear in the Standard.  AASB 1023 is to be read in the context of other Australian Accounting Standards including AASB 1048 Interpretation of Standards, which identifies the Australian Accounting Interpretations, and AASB 1057 Application of Australian Accounting Standards.  In the absence of explicit guidance, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies.

Comparison with IFRS 4

AASB 1023 General Insurance Contracts as amended incorporates the limited improvements to accounting for insurance contracts required by IFRS 4 Insurance Contracts.

General insurers applying this Standard and Australian Accounting Standards will be compliant with IFRS Standards.

IFRS 4 is implemented in Australia using three Accounting Standards:

     (a) AASB 4 Insurance Contracts (the Australian equivalent to IFRS 4), which applies to fixed-fee service contracts that meet the definition of an insurance contract;

     (b) AASB 1023, which applies to general insurance contracts; and

     (c) AASB 1038 Life Insurance Contracts, which applies to life insurance contracts.

IFRS 4 applies to all insurance contracts and financial instruments with discretionary participation features, whereas AASB 1023 only applies to general insurance contracts as well as certain aspects of accounting for assets that back general insurance liabilities.  Whereas IFRS 4 includes only limited improvements to accounting for insurance contracts and disclosure requirements, AASB 1023 addresses all aspects of the recognition, measurement and disclosure of general insurance contracts.

IFRS 4 allows insurers to use a practice described as "shadow accounting". AASB 1023 does not allow shadow accounting.

Accounting Standard AASB 1023

The Australian Accounting Standards Board made Accounting Standard AASB 1023 General Insurance Contracts under section 334 of the Corporations Act 2001 on 15 July 2004.

This compiled version of AASB 1023 applies to annual reporting periods beginning on or after 1 January 2023 but before 1 July 2026. It incorporates relevant amendments contained in other AASB Standards made by the AASB and other decisions of the AASB up to and including 15 December 2022 (see Compilation Details).

Accounting Standard AASB 1023

General Insurance Contracts

1 Application

1.1 [Deleted by the AASB]
          AusCF1 AusCF paragraphs included in this Standard apply only to:
               (a) not-for-profit entities; and
               (b) for-profit entities that are not applying the Conceptual Framework for Financial Reporting (as identified