Document ID: chunk:federal_register_of_legislation:F2021C00205:body:0:p27
Version: federal_register_of_legislation:F2021C00205
Segment Type: other
Provision Reference: 
Character Range: 69031–72184

is possible without the use of hindsight. If an entity does not restate prior periods, the entity shall recognise any difference between the previous carrying amount and the carrying amount at the beginning of the annual reporting period that includes the date of initial application of these amendments in the opening retained earnings (or other component of equity, as appropriate) of the annual reporting period that includes the date of initial application of these amendments.

Commencement of the legislative instrument
Aus45.1 [Repealed]

Withdrawal of AASB pronouncements
Aus45.2 This Standard repeals AASB 4 Insurance Contracts issued in July 2004.  Despite the repeal, after the time this Standard starts to apply under section 334 of the Corporations Act (either generally or in relation to an individual entity), the repealed Standard continues to apply in relation to any period ending before that time as if the repeal had not occurred.
[Note: When this Standard applies under section 334 of the Corporations Act (either generally or in relation to an individual entity), it supersedes the application of the repealed Standard.]

Appendix A
Defined terms
This appendix is an integral part of the Standard.
cedant                               The policyholder under a reinsurance contract.
deposit component                    A contractual component that is not accounted for as a derivative under AASB 9 and would be within the scope of AASB 9 if it were a separate instrument.
direct insurance contract            An insurance contract that is not a reinsurance contract.
discretionary participation feature  A contractual right to receive, as a supplement to  guaranteed benefits, additional benefits:
                                     (a) that are likely to be a significant portion of the total contractual benefits;
                                     (b) whose amount or timing is contractually at the discretion of the issuer; and
                                     (c) that are contractually based on:
                                     (i) the performance of a specified pool of contracts or a specified type of contract;
                                     (ii) realised and/or unrealised investment returns on a specified pool of assets held by the issuer; or
                                     (iii) the profit or loss of the company, fund or other entity that issues the contract.
fair value                           Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. (See AASB 13.)
financial guarantee contract         A contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument.
financial risk                       The risk of a possible future change in one or more of a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or