Document ID: chunk:federal_register_of_legislation:F2023C00382:reg:66:p6
Version: federal_register_of_legislation:F2023C00382
Segment Type: reg
Provision Reference: reg 66 (pt 6/8)
Character Range: 325466–328487

deleted a cross-reference to IAS 26 from paragraph 7(b) of AASB 17 instead of replacing it with a cross-reference to AASB 1056.
AusBC21               The AASB also considered groups where the consolidated financial statements of a superannuation entity include an insurance subsidiary that applies AASB 17.  On this issue the AASB noted that no significant issues were brought to its attention during the development of either AASB 1056 or AASB 17, nor since.
AusBC22               Accordingly, the AASB decided to issue AASB 17 without any consequential amendments to the insurance requirements of AASB 1056 in relation to this matter.  However, the AASB decided that it would add a specific matter for comment on this matter to its forthcoming ED on Australian-specific issues arising from AASB 17.

Implications for NFP and public sector entities
AusBC23               When issuing a new accounting Standard the AASB considers the applicability of that Standard to all sectors of the economy.  In the case of AASB 17, the incorporation of IFRS 17 means that the for-profit private sector is largely considered through the IASB's due process – see paragraphs AusBC6–AusBC11.
AusBC24               However, the IASB does not explicitly consider:
            (a) NFP entities in the public and private sectors; and
            (b) for-profit entities in the public sector.
AusBC25               The AASB decided that additional consideration is warranted for such entities.  To that end, the AASB established a short-term project to consider the applicability and suitability of AASB 17 to them.
AusBC26               At the time of issuing AASB 17, that project was in the process of developing proposals for exposure in the AASB's forthcoming ED on Australian-specific issues arising from AASB 17.
AusBC27               Notwithstanding the above project, the AASB was aware of key concerns from the NFP public sector in particular that need further consideration before a decision is made about whether those entities should be subject to AASB 17 without amendment.  Chiefly among those concerns was AASB 17 applicability to statutory obligations such as Medicare, the National Disability Insurance Scheme or worker's compensation insurance.
AusBC28               The AASB acknowledged those concerns and decided to temporarily exclude NFP public sector entities from the scope of AASB 17 pending the outcome of its separate project to address these issues.  Until such time as the NFP public sector issues are addressed, those affected entities continue to be subject to AASB 4, AASB 1023 and AASB 1038 (and, potentially, Interpretation 1047).
AusBC29               The AASB noted that NFP private sector entities (eg some health insurers) often enter into insurance contracts that are substantively similar to those entered into by for-profit entities.  Accordingly, the AASB decided not to restrict NFP private sector entities from applying AASB 17, rather allowing those entities to decide to apply AASB 17 prior to