Document ID: chunk:federal_register_of_legislation:F2024L00708:body:0:p43
Version: federal_register_of_legislation:F2024L00708
Segment Type: other
Provision Reference: 
Character Range: 115957–118783

discount rate on provisions, applying AASB 137.
B55 Examples of income and expenses that arise from transactions that do not involve only the raising of finance but that are not in the scope of paragraph 61, and accordingly are classified in the operating category, include:
(a) expenses recognised for consumption of the purchased goods or services described in paragraph B54(a);
(b) current and past service cost arising from a defined benefit plan, applying AASB 119; and
(c) remeasurements of the fair value of a liability for contingent consideration in a business combination recognised applying AASB 3 Business Combinations.

Classification of income and expenses from hybrid contracts containing a host that is a liability
B56 How an entity classifies income and expenses from a hybrid contract with a host that is a liability depends on whether the embedded derivative is separated from the host contract. If the embedded derivative:
(a) is separated from the host liability:
(i) for the separated host liability – an entity applies the requirements for income and expenses from liabilities, as specified in paragraphs 52, 59–61, 64(b) and 65–66; and
(ii) for the separated embedded derivative – an entity applies the requirements for income and expenses from derivatives, as specified in paragraphs B70–B76;
(b) is not separated from the host liability and if the hybrid contract arises from a transaction that involves only the raising of finance – an entity applies the requirements for liabilities that arise from such transactions, as specified in paragraphs 52, 60 and 65–66;
(c) is not separated from the host liability and if the hybrid contract does not arise from a transaction that involves only the raising of finance:
(i) if the host liability is a financial liability within the scope of AASB 9 that is measured at amortised cost – an entity classifies in the financing category income and expenses specified in paragraph 60 from the contract after initial recognition (instead of the income and expenses specified in paragraph 61) (see paragraph B59);
(ii) if the hybrid contract is an insurance contract within the scope of AASB 17 – an entity applies the requirements in paragraphs 52 and 64(b); and
(iii) otherwise – an entity applies the requirements for income and expenses from liabilities that arise from such transactions, as specified in paragraphs 52 and 61.
B57 An entity shall apply paragraphs B56(b) and B56(c) to all hybrid contracts containing a host liability for which the embedded derivative is not separated, regardless of whether the embedded derivative is not separated by the entity applying paragraph 4.3.3 of AASB 9 or applying paragraph 4.3.5 of AASB 9.

Liabilities arising from issued investment contracts with participation features
B58 Paragraph 64(a) sets out requirements