Document ID: chunk:federal_register_of_legislation:F2023L00014:body:0:p11
Version: federal_register_of_legislation:F2023L00014
Segment Type: other
Provision Reference: 
Character Range: 27708–30677

to further its objectives, and the receipt of volunteer services, except for:
(a) …
(c) contracts within the scope of AASB 17 Insurance Contracts;
(d) …
          Aus7.1 Further to paragraph 7, public sector entities shall not apply this Standard to insurance contracts within the scope of AASB 4 Insurance Contracts or AASB 1023 General Insurance Contracts.

Commencement of the legislative instrument

For legal purposes, this legislative instrument commences on 31 December 2022.

Basis for Conclusions
This Basis for Conclusions accompanies, but is not part of, AASB 2022-8 Amendments to Australian Accounting Standards – Insurance Contracts: Consequential Amendments.

Introduction
     BC1               This Basis for Conclusions summarises the Australian Accounting Standards Board's considerations in reaching the conclusions in this Standard. It sets out the reasons why the Board developed the Standard, the approach taken to developing the Standard and the key decisions made. In making decisions, individual Board members gave greater weight to some factors than to others.

Reasons for issuing this Standard

Consequential amendments for public sector entities
     BC2               Prior to these amendments, for-profit public sector entities were required to apply AASB 17 Insurance Contracts for annual periods beginning on or after 1 January 2023. However, the Board decided to defer the mandatory application date of AASB 17 for for-profit public sector entities to annual periods beginning on or after 1 July 2026. Therefore, the Board issued this Standard to amend relevant Australian Accounting Standards so that for-profit public sector entities would be permitted to continue applying AASB 4 Insurance Contracts and AASB 1023 General Insurance Contracts until required to apply AASB 17. The Board is issuing another amending Standard to make public-sector-specific modifications to AASB 17 for application to annual periods beginning on or after 1 July 2026.
     BC3               Prior to these amendments, no date had been set for the application of AASB 17 by not-for-profit public sector entities: AASB 4 and AASB 1023 would just continue to apply in the absence of a withdrawal date. The amendments made by this Standard to AASB 17 and AASB 1057 Application of Australian Accounting Standards mean that not-for-profit public sector entities will be required to apply AASB 17 for annual periods beginning on or after 1 July 2026. The public sector modifications to AASB 17 will also assist not-for-profit public sector entities in applying AASB 17.
     BC4               When AASB 17 applies to all entities – for annual periods beginning on or after 1 July 2026 – AASB 4 and AASB 1023 will cease to have any application. Those Standards will then be repealed through AASB 17 and the paragraphs referring to AASB 4 and AASB 1023 that have been added or amended by this Standard will be deleted from the various Standards.

Withdrawal