Document ID: chunk:federal_register_of_legislation:F2023C00382:front:0:p97
Version: federal_register_of_legislation:F2023C00382
Segment Type: other
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Character Range: 255339–258178

acquirer shall account for those items by applying the requirements in paragraphs 22–3131A, which will result in some items being:
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Insurance contracts
31A The acquirer shall measure a group of contracts within the scope of AASB 17 Insurance Contracts acquired in a business combination, and any assets for insurance acquisition cash flows as defined in AASB 17, as a liability or asset in accordance with paragraphs 39 and B93–B95F of AASB 17, at the acquisition date.
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Bargain purchases
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35 A bargain purchase might happen, for example, in a business combination that is a forced sale in which the seller is acting under compulsion. However, the recognition or measurement exceptions for particular items discussed in paragraphs 22–3131A may also result in recognising a gain (or change the amount of a recognised gain) on a bargain purchase.
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Effective date
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64N AASB 17, issued in July 2017, amended paragraphs 17, 20, 21, 35 and B63, and after paragraph 31 added a heading and paragraph 31A. AASB 2020-5 Amendments to Australian Accounting Standards – Insurance Contracts, issued in July 2020, amended paragraph 31A. An entity shall apply the amendments to paragraph 17 to business combinations with an acquisition date after the date of initial application of AASB 17. An entity shall apply the other amendments when it applies AASB 17.

In Appendix B, paragraph B63 is amended.

Other Australian Accounting Standards that provide guidance on subsequent measurement and accounting (application of paragraph 54)
B63 Examples of other Australian Accounting Standards that provide guidance on subsequently measuring and accounting for assets acquired and liabilities assumed or incurred in a business combination include:
(a) …
(b) [deleted]AASB 4 Insurance Contracts provides guidance on the subsequent accounting for an insurance contract acquired in a business combination.
(c) …

AASB 5 Non-current Assets Held for Sale and Discontinued Operations (August 2015, as amended)

Paragraph 5 is amended. Paragraph 44M is added.

Scope
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5 The measurement provisions of this Standard [footnote omitted] do not apply to the following assets, which are covered by the Standards listed, either as individual assets or as part of a disposal group:
(a) …
(f) contractual rights under insurance contracts as defined in AASB 4groups of contracts within the scope of AASB 17 Insurance Contracts.
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Effective date
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44M AASB 17, issued in July 2017, amended paragraph 5. An entity shall apply that amendment when it applies AASB 17.

AASB 7 Financial Instruments: Disclosures (August 2015, as amended but excluding AASB 16)

The following amendments apply only when AASB 17 is not applied in conjunction with AASB 16.
Paragraphs 3, 8 and 29 are amended. Paragraph 30 is deleted. Paragraph 44DD is added.

Scope
3 This Standard