Document ID: chunk:federal_register_of_legislation:F2023L00577:body:0:p10
Version: federal_register_of_legislation:F2023L00577
Segment Type: other
Provision Reference: 
Character Range: 24440–27571

2.2 insurance service expenses from inwards reinsurance is a derived item and is calculated as the sum of items 2.2.1 to 2.2.6 inclusive.
Item 2.2.1  Report incurred claims from inwards reinsurance.

Item 2.2.2  Report other insurance service expenses from inwards reinsurance.

            Report insurance acquisition cash flows that have been recognised as expenses when incurred under AASB 17.59(a) at this item.

Item 2.2.3  Report amortisation of insurance acquisition cash flows from inwards reinsurance.

Item 2.2.4  Report losses and reversal of losses on onerous contracts from inwards reinsurance.

            Report this item in accordance with AASB 17.47-52.

Item 2.2.5  Report changes that relate to past service: changes to liabilities for incurred claims from inwards reinsurance.

            Report this item in accordance with AASB 17.103 (b) (iii) Disclosure.

Item 2.2.6  Report impairment losses/reversals on assets for insurance acquisition cash flows from inwards reinsurance.

            Report this item in accordance with AASB 17 Appendix A, AASB 17.28B, AASB 17.28E and AASB 17.28F. APRA has interpreted this item to form part of insurance service expense.

3.                  Insurance service result before reinsurance contracts held

Item 3  Item 3, insurance service result before reinsurance contracts held, is a derived item and is calculated as the sum of item 1 and item 2.

        Report this item in accordance with AASB 17 Appendix A.

4.                  Allocation of reinsurance premiums

Item 4  Report allocation of reinsurance premiums.

        It is requested that the entity present this item separately from amounts recoverable from reinsurers reported at item 5.

        Report this item in accordance with AASB 17.86.

5.                  Amounts recoverable from reinsurers

Item 5  Report amounts recoverable from reinsurers. Include at this item reversals of recoveries of losses from the reinsurance contracts determined in accordance with AASB 17.66B for reinsurance contracts held.

        Report this item in accordance with AASB 17.86.

        The amount reported at this item should reconcile to item 8. 'Amounts recoverable from reinsurers' reported in Reporting Standard GRS 320.0.G Liability Roll Forwards Part B: Reinsurance contracts held (outwards reinsurance by cedant/retrocedent) Liability Roll Forward 1 – Reconciliation of the remaining coverage and incurred claims (GRS 320.0.G Part B RF1).

6.                  Net expense from reinsurance contracts held

Item 6  Item 6 is a derived item and is calculated as the sum of item 4 and item 5. This item can be a net income or net expense.

        Report this item in accordance with AASB 17 Appendix A, AASB 101.82 (ac), AASB 17.82 and AASB 17.86.

7.                  Insurance service result

Item 7  Item 7, insurance service result, is a derived item and is calculated as the sum of item 3 and item 6.

        Report this item in accordance with AASB 17.80 (a).

8.                  Interest revenue calculated using the effective interest method

Item 8  Report interest revenue