Document ID: chunk:federal_register_of_legislation:F2023L00717:body:0:p19
Version: federal_register_of_legislation:F2023L00717
Segment Type: other
Provision Reference: 
Character Range: 74777–80694

reported in A9.4.
           Show the impact that allocating profit to Life Act PRP has on Life Act policy liabilities. The offsetting impact on Life Act PRP is reported in L9.4.
                                                                                                                                                                                                                                                                                                                               Releasing policyholder profit decreases EFCF (non-PRP portion).
           Releasing policyholder profit decreases VSA.
Item L9.4  Report allocation to Life Act PRP due to L9.3.                                                                                                                                                                                                                                                           Item A9.4  Report allocation to EFCF (PRP portion) due to A9.3.

           This is the amount allocated to Life Act PRP due to L9.3.                                                                                                                                                                                                                                                           This is the amount allocated to EFCF (PRP portion) due to A9.3.

           Allocating a policyholder profit increases Life Act PRP.                                                                                                                                                                                                                                                            Allocating a policyholder profit increases EFCF (PRP portion).

10. Life Act policy liability / AASB 17 liability components

Item L10.1  Report PV guaranteed benefits.                                                                                                                                                                                      Item A10.1  Report PV guaranteed benefits within EFCF (non-PRP portion).

            This is present value of guaranteed benefits for participating business at the discount rate chosen under the VSA led method.                                                                                                   This is present value of guaranteed benefits for participating business at the discount rate chosen under AASB 17.
            For participating investment account benefits, report the present value of guaranteed withdrawals (on death, disability, surrender or at maturity). Allow for future crediting rates at guaranteed minimum levels.              Report net of present value of reinsurance recoveries relating to participating business.
            Use a discount rate that is net of:
                * FUM-based investment expenses; and                                                                                                                                                                                        This is a positive component of EFCF.
                * tax on investment earnings net of FUM-based investment expenses.
            Report net of present value of reinsurance recoveries relating to participating business.

            This is a positive component of BEL.
Item L10.2  Report PV expenses (gross of tax relief).                                                                                                                                                                           Item A10.2  Report PV directly attributable expenses within EFCF (non-PRP portion) (gross of tax relief).

            This is present value of future expenses (including commissions) other than:                                                                                                                                                    This is present value of directly attributable expenses gross of tax deduction for participating business at the discount rate chosen under AASB 17. This is a positive component of EFCF.

                * future expenses that are reflected in the VSA discount rate; and                                                                                                                                                          Exclude:
                * future expenses that fall outside Life Act policy liability.                                                                                                                                                                  * expenses that are reflected in the discount rate for EFCF (non-PRP portion); and
            Report gross of tax deduction on these expenses. The tax deduction is reported in L10.4.                                                                                                                                            * expenses that relate to EFCF (PRP portion).

            This is a positive component of BEL.
Item L10.3  Report PV premiums (gross of tax on premiums).                                                                                                                                                                      Item A10.3  Report PV premiums within EFCF (gross of tax on premiums).

            This is present value of future premiums.                                                                                                                                                                                       This is present value of premiums gross of tax on premiums for participating business at the discount rate chosen under AASB 17.

            For participating investment account benefits, treat deposits as premiums.                                                                                                                                                      Report