Document ID: chunk:federal_register_of_legislation:F2021C00205:body:0:p9
Version: federal_register_of_legislation:F2021C00205
Segment Type: other
Provision Reference: 
Character Range: 21806–24693

(a) liabilities arising from contracts within the scope of this Standard, AASB 1023 and AASB 1038, as described in paragraph 20D(a);
(b) non-derivative investment contract liabilities measured at fair value through profit or loss applying AASB 139 (including those designated as at fair value through profit or loss to which the insurer has applied the requirements in AASB 9 for the presentation of gains and losses (see paragraphs 20B(a) and 20C)); and
(c) liabilities that arise because the insurer issues, or fulfils obligations arising from, the contracts in (a) and (b). Examples of such liabilities include derivatives used to mitigate risks arising from those contracts and from the assets backing those contracts, relevant tax liabilities such as the deferred tax liabilities for taxable temporary differences on liabilities arising from those contracts, and debt instruments issued that are included in the insurer's regulatory capital.
20F In assessing whether it engages in a significant activity unconnected with insurance for the purposes of applying paragraph 20D(b)(ii), an insurer shall consider:
(a) only those activities from which it may earn income and incur expenses; and
(b) quantitative or qualitative factors (or both), including publicly available information such as the industry classification that users of financial statements apply to the insurer.
20G Paragraph 20B(b) requires an entity to assess whether it qualifies for the temporary exemption from AASB 9 at its annual reporting date that immediately precedes 1 April 2016. After that date:
(a) an entity that previously qualified for the temporary exemption from AASB 9 shall reassess whether its activities are predominantly connected with insurance at a subsequent annual reporting date if, and only if, there was a change in the entity's activities, as described in paragraphs 20H–20I, during the annual period that ended on that date.
(b) an entity that previously did not qualify for the temporary exemption from AASB 9 is permitted to reassess whether its activities are predominantly connected with insurance at a subsequent annual reporting date before 31 December 2018 if, and only if, there was a change in the entity's activities, as described in paragraphs 20H–20I, during the annual period that ended on that date.
20H For the purposes of applying paragraph 20G, a change in an entity's activities is a change that:
(a) is determined by the entity's senior management as a result of external or internal changes;
(b) is significant to the entity's operations; and
(c) is demonstrable to external parties.
Accordingly, such a change occurs only when the entity begins or ceases to perform an activity that is significant to its operations or significantly changes the magnitude of one of its activities; for example, when the entity has acquired, disposed of or terminated a business line.