Document ID: chunk:federal_register_of_legislation:F2023C00383:front:0:p6
Version: federal_register_of_legislation:F2023C00383
Segment Type: other
Provision Reference: 
Character Range: 14213–16990

party (as defined in AASB 124 Related Party Disclosures) of the reporting entity, if the proceeds of the policy:
(a) can be used only to pay or fund employee benefits under a defined benefit plan; and
(b) are not available to the reporting entity's own creditors (even in bankruptcy) and cannot be paid to the reporting entity, unless either:
(i) the proceeds represent surplus assets that are not needed for the policy to meet all the related employee benefit obligations; or
(ii) the proceeds are returned to the reporting entity to reimburse it for employee benefits already paid.
 Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. (See AASB 13 Fair Value Measurement.)

Definitions relating to defined benefit cost
 Service cost comprises:
(a) current service cost, which is the increase in the present value of the defined benefit obligation resulting from employee service in the current period;
(b) past service cost, which is the change in the present value of the defined benefit obligation for employee service in prior periods, resulting from a plan amendment (the introduction or withdrawal of, or changes to, a defined benefit plan) or a curtailment (a significant reduction by the entity in the number of employees covered by a plan); and
(c) any gain or loss on settlement.
 Net interest on the net defined benefit liability (asset) is the change during the period in the net defined benefit liability (asset) that arises from the passage of time.
 Remeasurements of the net defined benefit liability (asset) comprise:
(a) actuarial gains and losses;
(b) the return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset); and
(c) any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset).
 Actuarial gains and losses are changes in the present value of the defined benefit obligation resulting from:
(a) experience adjustments (the effects of differences between the previous actuarial assumptions and what has actually occurred); and
(b) the effects of changes in actuarial assumptions.
 The return on plan assets is interest, dividends and other income derived from the plan assets, together with realised and unrealised gains or losses on the plan assets, less:
(a) any costs of managing plan assets; and
(b) any tax payable by the plan itself, other than tax included in the actuarial assumptions used to measure the present value of the defined benefit obligation.
 A settlement is a transaction that eliminates all further legal or constructive obligations for part or all of the benefits provided under a