Document ID: chunk:federal_register_of_legislation:F2023L00015:reg:21:p100
Version: federal_register_of_legislation:F2023L00015
Segment Type: reg
Provision Reference: reg 21 (pt 100/101)
Character Range: 308436–311349

remaining coverage.
[10] Calculated using the premium allocation approach, which public sector entities may choose to apply under AASB 17/PBE IFRS 17.
[11] This is the level at which the Liability Adequacy Test is currently applied under AASB 1023.9.1/PBE IFRS 4 (Appendix D.9.1).
[12] Based on IFRS 17.BC140 to BC144.
[13] Under existing (or substantively enacted) legislation.
[14] The reference to 'near monopolies' relates mainly to arrangements such as the workers' compensation arrangements that operate in most Australian states, from which 'approved' large employers can be excluded on meeting certain conditions.
[15] Although the Boards proposed that, effectively, the basic unit of account for public sector entities would be portfolios, in which case the test would apply at the portfolio level.
[16] Generally referred to as the 'outstanding claims liability' under AASB 1023/PBE IFRS 4.
[17] Akin to the 'unearned premium liability' referred to in AASB 1023/PBE IFRS 4.
[18] The Boards noted that some Australian public sector entities are required (via regulation imposed in that jurisdiction) to benchmark to Australian Prudential Regulation Authority (APRA) prudential requirements, which include a minimum risk margin.
[19] The Boards observed that, of itself, very little additional actuarial effort is likely to be needed to determine a risk adjustment – most of the relevant work is performed to determine the best estimate.
[20] The Boards noted that, in principle, a central estimate is not the same as having a zero risk adjustment because a zero risk adjustment could be re-measured to something above zero; whereas, a central estimate is always a central estimate.
[21] AASB 108/PBE IPSAS 3 Accounting Policies, Changes in Accounting Estimates and Errors [paragraphs 10 and 11].
[22] The second sentence of AASB 17.2/PBE IFRS 17.2 is the same as the definition for 'contract' used more generally in Accounting Standards (including: AASB 15/NZ IFRS 15 Revenue from Contracts with Customers).
[23] Public sector entities often occupy a monopoly position and are able to raise or lower contributions to either make up for earlier funding shortfalls or use up existing surpluses.
[24] Public benefit entities (PBEs) are reporting entities whose primary objective is to provide goods or services for community or social benefit and where any equity has been provided with a view to supporting that primary objective rather than for a financial return to equity holders (paragraph 6 of XRB A1 Application of the Accounting Standards Framework). PBEs comprise not-for-profit entities and public sector entities.
[25] AASB 137 only (and not PBE IFRS 19) because the relevant entities are Australian.
[26] For a consolidated group that is not an insurer, the captive insurer would typically organise the group's insurance coverage. For a consolidated group that is an insurer, the captive insurer