Document ID: chunk:federal_register_of_legislation:F2021C00205:body:0:p19
Version: federal_register_of_legislation:F2021C00205
Segment Type: other
Provision Reference: 
Character Range: 48096–51055

its accounting policies for insurance contracts and related assets, liabilities, income and expense.
(b) the recognised assets, liabilities, income and expense (and, if it presents its statement of cash flows using the direct method, cash flows) arising from insurance contracts. Furthermore, if the insurer is a cedant, it shall disclose:
(i) gains and losses recognised in profit or loss on buying reinsurance; and
(ii) if the cedant defers and amortises gains and losses arising on buying reinsurance, the amortisation for the period and the amounts remaining unamortised at the beginning and end of the period.
(c) the process used to determine the assumptions that have the greatest effect on the measurement of the recognised amounts described in (b). When practicable, an insurer shall also give quantified disclosure of those assumptions.
(d) the effect of changes in assumptions used to measure insurance assets and insurance liabilities, showing separately the effect of each change that has a material effect on the financial statements.
(e) reconciliations of changes in insurance liabilities, reinsurance assets and, if any, related deferred acquisition costs.

Nature and extent of risks arising from insurance contracts
38 An insurer shall disclose information that enables users of its financial statements to evaluate the nature and extent of risks arising from insurance contracts.
39 To comply with paragraph 38, an insurer shall disclose:
(a) its objectives, policies and processes for managing risks arising from insurance contracts and the methods used to manage those risks.
(b) [deleted]
(c) information about insurance risk (both before and after risk mitigation by reinsurance), including information about:
(i) sensitivity to insurance risk (see paragraph 39A).
(ii) concentrations of insurance risk, including a description of how management determines concentrations and a description of the shared characteristic that identifies each concentration (eg type of insured event, geographical area, or currency).
(iii) actual claims compared with previous estimates (ie claims development). The disclosure about claims development shall go back to the period when the earliest material claim arose for which there is still uncertainty about the amount and timing of the claims payments, but need not go back more than ten years. An insurer need not disclose this information for claims for which uncertainty about the amount and timing of claims payments is typically resolved within one year.
(d) information about credit risk, liquidity risk and market risk that paragraphs 31–42 of AASB 7 would require if the insurance contracts were within the scope of AASB 7. However:
(i) an insurer need not provide the maturity analyses required by paragraph 39(a) and (b) of AASB 7 if it discloses information about the estimated timing of the net cash outflows resulting from recognised insurance liabilities instead. This may take the form