Document ID: chunk:federal_register_of_legislation:F2023C00194:body:0:p28
Version: federal_register_of_legislation:F2023C00194
Segment Type: other
Provision Reference: 
Character Range: 72916–76233

arising from insurance contracts.
17.6.1 To comply with paragraph 17.6, an insurer shall disclose:
(a) its accounting policies for insurance contracts and related assets, liabilities, income and expense;
(b) the recognised assets, liabilities, income, expense and cash flows arising from insurance contracts.  Furthermore, if the insurer is a cedant, it shall disclose:
(i)  gains and losses recognised in the statement of comprehensive income on buying reinsurance; and
(ii)  if the cedant defers and amortises gains and losses arising on buying reinsurance, the amortisation for the period and the amounts remaining unamortised at the beginning and end of the period;
(c) the process used to determine the assumptions that have the greatest effect on the measurement of the recognised amounts described in (b).  When practicable, an insurer shall also give quantified disclosure of those assumptions;
(d) the effect of changes in assumptions used to measure insurance assets and insurance liabilities, showing separately the effect of each change that has a material effect on the financial statements; and
(e) reconciliations of changes in insurance liabilities, reinsurance assets and, if any, related deferred acquisition costs.
17.6.2 In applying paragraph 17.6.1(b), the recognised assets and liabilities arising from insurance contracts would normally include:
(a) gross outstanding claims liability;
(b) reinsurance recoveries receivable arising from the outstanding claims liability;
(c) gross unearned premium liability;
(d) reinsurance recoveries receivable arising from the unearned premium liability;
(e) unexpired risk liability;
(f) other reinsurance recoveries receivable;
(g) other recoveries receivable;
(h) outwards reinsurance expense asset or liability;
(i) direct premium revenue receivable;
(j) inwards reinsurance premium revenue receivable;
(k) deferred acquisition cost asset; and
(l) intangible assets relating to acquired insurance contracts.
17.6.3 In applying paragraph 17.6.1(b), the recognised income and expenses arising from insurance contracts would normally include:
(a) direct premium revenue;
(b) inwards reinsurance premium revenue (including retrocessions);
(c) reinsurance and other recoveries revenue;
(d) direct claims expense;
(e) reinsurance claims expense;
(f) outwards reinsurance premium expense (including retrocessions);
(g) acquisition costs expense; and
(h) other underwriting expenses, including claims handling expenses.
17.6.4 When an insurer is presenting the disclosures required by paragraphs 17.6.1(c) and 17.6.1(d) the insurer determines the level and extent of disclosure that is appropriate having regard to its circumstances and the qualitative characteristics of financial statements under the Conceptual Framework for Financial Reporting (as identified in AASB 1048 Interpretation of Standards).
          AusCF17.6.4 Notwithstanding paragraph 17.6.4, in respect of AusCF entities, when an insurer is presenting the disclosures required by paragraphs 17.6.1(c) and 17.6.1(d) the insurer determines the level and extent of disclosure that is appropriate having regard to its circumstances and the qualitative characteristics of financial statements under the Framework for the Preparation and Presentation of Financial Statements (as identified in AASB