Document ID: chunk:federal_register_of_legislation:F2023C00382:front:0:p81
Version: federal_register_of_legislation:F2023C00382
Segment Type: other
Provision Reference: 
Character Range: 213176–216024

entity first applies AASB 17; and
(b) the transition date is the beginning of the annual reporting period immediately preceding the date of initial application.
C2A AASB 2022-1 Amendments to Australian Accounting Standards – Initial Application of AASB 17 and AASB 9 – Comparative Information, issued in March 2022, added paragraphs C28A–C28E and C33A. An entity that chooses to apply paragraphs C28A–C28E and C33A shall apply them on initial application of AASB 17.

Transition
C3 Unless it is impracticable to do so, or paragraph C5A applies, an entity shall apply AASB 17 retrospectively, except that:
(a) an entity is not required to present the quantitative information required by paragraph 28(f) of AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors; and
(b) an entity shall not apply the option in paragraph B115 for periods before the transition date. An entity may apply the option in paragraph B115 prospectively on or after the transition date if, and only if, the entity designates risk mitigation relationships at or before the date it applies the option.
C4 To apply AASB 17 retrospectively, an entity shall at the transition date:
(a) identify, recognise and measure each group of insurance contracts as if AASB 17 had always applied;
(aa) identify, recognise and measure any assets for insurance acquisition cash flows as if AASB 17 had always applied (except that an entity is not required to apply the recoverability assessment in paragraph 28E before the transition date);
(b) derecognise any existing balances that would not exist had AASB 17 always applied; and
(c) recognise any resulting net difference in equity.
C5 If, and only if, it is impracticable for an entity to apply paragraph C3 for a group of insurance contracts, an entity shall apply the following approaches instead of applying paragraph C4(a):
(a) the modified retrospective approach in paragraphs C6–C19A, subject to paragraph C6(a); or
(b) the fair value approach in paragraphs C20–C24B.
C5A Notwithstanding paragraph C5, an entity may choose to apply the fair value approach in paragraphs C20–C24B for a group of insurance contracts with direct participation features to which it could apply AASB 17 retrospectively if, and only if:
(a) the entity chooses to apply the risk mitigation option in paragraph B115 to the group of insurance contracts prospectively from the transition date; and
          (b) the entity has used derivatives, non-derivative financial instruments measured at fair value through profit or loss, or reinsurance contracts held to mitigate financial risk arising from the group of insurance contracts, as specified in paragraph B115, before the transition date.
C5B If, and only if, it is impracticable for an entity to apply paragraph C4(aa) for an asset for insurance acquisition cash flows, the entity shall