Document ID: chunk:federal_register_of_legislation:F2021C00205:body:0:p17
Version: federal_register_of_legislation:F2021C00205
Segment Type: other
Provision Reference: 
Character Range: 42954–45696

financial assets applying AASB 9; and
(ii) the amount that would have been reported in profit or loss for the designated financial assets if the insurer had applied AASB 139.
(b) apply all other applicable Standards to its financial instruments, except as described in paragraphs 35B–35N, 39K–39M and 48–49 of this Standard.
35C An insurer may elect to apply the overlay approach described in paragraph 35B only when it first applies AASB 9, including when it first applies AASB 9 after previously applying:
(a) the temporary exemption from AASB 9 described in paragraph 20A; or
(b) only the requirements for the presentation of gains and losses on financial liabilities designated as at fair value through profit or loss in paragraphs 5.7.1(c), 5.7.7–5.7.9, 7.2.14 and B5.7.5–B5.7.20 of AASB 9.
35D An insurer shall present the amount reclassified between profit or loss and other comprehensive income applying the overlay approach:
(a) in profit or loss as a separate line item; and
(b) in other comprehensive income as a separate component of other comprehensive income.
35E A financial asset is eligible for designation for the overlay approach if, and only if, the following criteria are met:
(a) it is measured at fair value through profit or loss applying AASB 9 but would not have been measured at fair value through profit or loss in its entirety applying AASB 139; and
(b) it is not held in respect of an activity that is unconnected with contracts within the scope of this Standard, AASB 1023 or AASB 1038. Examples of financial assets that would not be eligible for the overlay approach are those assets held in respect of banking activities or financial assets held in funds relating to investment contracts that are outside the scope of this Standard, AASB 1023 or AASB 1038.
35F An insurer may designate an eligible financial asset for the overlay approach when it elects to apply the overlay approach (see paragraph 35C). Subsequently, it may designate an eligible financial asset for the overlay approach when, and only when:
(a) that asset is initially recognised; or
(b) that asset newly meets the criterion in paragraph 35E(b) having previously not met that criterion.
35G An insurer is permitted to designate eligible financial assets for the overlay approach applying paragraph 35F on an instrument-by-instrument basis.
35H When relevant, for the purposes of applying the overlay approach to a newly designated financial asset applying paragraph 35F(b):
(a) its fair value at the date of designation shall be its new amortised cost carrying amount; and
(b) the effective interest rate shall be determined based on its fair value at the date of designation.
35I An entity shall continue to apply the overlay approach to a