Document ID: chunk:federal_register_of_legislation:F2023C00194:body:0:p26
Version: federal_register_of_legislation:F2023C00194
Segment Type: other
Provision Reference: 
Character Range: 67334–70426

it meets the definition of held for trading; or
          (b) it is designated as "at fair value through profit or loss" upon initial recognition in accordance with paragraph 4.2.2, because either:
               (i) it eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as 'an accounting mismatch') that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on different bases; or
               (ii) a group of financial liabilities or financial assets and financial liabilities is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the group is provided internally on that basis to the entity's key management personnel (as defined in AASB 124 Related Party Disclosures), for example the entity's board of directors and chief executive officer.
         An entity may also use this designation when it is a contract with an embedded derivative and paragraph 4.3.3 of AASB 9 allows the entity to measure the hybrid contract as "at fair value through profit or loss".
AASB 1 First-time Adoption of Australian Accounting Standards permits entities to designate financial liabilities as "at fair value through profit or loss" on first application of the Standard.
16.2 Paragraphs 15.2, 15.3, 15.4 and 15.5 shall also be applied to the measurement of assets that back financial liabilities that arise under non-insurance contracts.

17 Disclosures

Statement of Comprehensive Income
17.1 In relation to the statement of comprehensive income, the financial statements shall disclose:
(a) the underwriting result for the reporting period, determined as the amount obtained by deducting the sum of claims expense, outwards reinsurance premium expense and underwriting expenses from the sum of direct and inwards reinsurance premium revenues and recoveries revenue;
(b) net claims incurred shall be disclosed, showing separately:
               (i) the amount relating to risks borne in the current reporting period; and
               (ii) the amount relating to a reassessment of risks borne in all previous reporting periods.
An explanation shall be provided where net claims incurred relating to a reassessment of risks borne in previous reporting periods are material; and
(c) in respect of 17.1(b)(i) and 17.1(b)(ii), the following components shall be separately disclosed:
               (i) gross claims incurred – undiscounted;
               (ii) reinsurance and other recoveries – undiscounted; and
               (iii) discount movements shown separately for (i) and (ii).
17.1.1 This Standard requires the underwriting result for the reporting period to be disclosed.  This disclosure gives an indication of an insurer's underwriting performance, including the extent to which underwriting activities rely on investment income for the payment of claims.
17.1.2 Based on the total movement in net claims incurred, it may appear that there has not been a material reassessment of