Appendix C (AASB17_07-17_COMPdec22_01-23)

An entity shall apply AASB 17 for annual reporting periods beginning on or after 1 January 2023. If an entity applies AASB 17 earlier, it shall disclose that fact. Early application is permitted for entities that apply AASB 9 Financial Instruments on or before the date of initial application of AASB 17.

Notwithstanding paragraph C1, this Standard applies to public sector entities for annual reporting periods beginning on or after 1 July 2026. Early application is permitted. If a public sector entity applies this Standard earlier, it shall disclose that fact.

For the purposes of the transition requirements in paragraphs C1 and C3–C33:

(a)            the date of initial application is the beginning of the annual reporting period in which an 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.

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.

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.

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.

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.

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.

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 apply the following approaches to measure the asset for insurance acquisition cash flows:

(a)            the modified retrospective approach in paragraphs C14B–C14D and C17A, subject to paragraph C6(a); or

(b)            the fair value approach in paragraphs C24A–C24B.

The objective of the modified retrospective approach is to achieve the closest outcome to retrospective application possible using reasonable and supportable information available without undue cost or effort. Accordingly, in applying this approach, an entity shall:

(a)            use reasonable and supportable information. If the entity cannot obtain reasonable and supportable information necessary to apply the modified retrospective approach, it shall apply the fair value approach.

(b)            maximise the use of information that would have been used to apply a fully retrospective approach, but need only use information available without undue cost or effort.

Paragraphs C9–C19A set out permitted modifications to retrospective application in the following areas:

(a)            assessments of insurance contracts or groups of insurance contracts that would have been made at the date of inception or initial recognition;

(b)            amounts related to the contractual service margin or loss component for insurance contracts without direct participation features;

(c)            amounts related to the contractual service margin or loss component for insurance contracts with direct participation features; and

(d)            insurance finance income or expenses.

To achieve the objective of the modified retrospective approach, an entity is permitted to use each modification in paragraphs C9–C19A only to the extent that an entity does not have reasonable and supportable information to apply a retrospective approach.

To the extent permitted by paragraph C8, an entity shall determine the following matters using information available at the transition date:

(a)            how to identify groups of insurance contracts, applying paragraphs 14–24;

(b)            whether an insurance contract meets the definition of an insurance contract with direct participation features, applying paragraphs B101–B109;

(c)            how to identify discretionary cash flows for insurance contracts without direct participation features, applying paragraphs B98–B100; and

(d)            whether an investment contract meets the definition of an investment contract with discretionary participation features within the scope of AASB 17, applying paragraph 71.

To the extent permitted by paragraph C8, an entity shall classify as a liability for incurred claims a liability for settlement of claims incurred before an insurance contract was acquired in a transfer of insurance contracts that do not form a business or in a business combination within the scope of AASB 3.

To the extent permitted by paragraph C8, an entity shall not apply paragraph 22 to divide groups into those that do not include contracts issued more than one year apart.

To the extent permitted by paragraph C8, for contracts without direct participation features, an entity shall determine the contractual service margin or loss component of the liability for remaining coverage (see paragraphs 49–52) at the transition date by applying paragraphs C12–C16C.

To the extent permitted by paragraph C8, an entity shall estimate the future cash flows at the date of initial recognition of a group of insurance contracts as the amount of the future cash flows at the transition date (or earlier date, if the future cash flows at that earlier date can be determined retrospectively, applying paragraph C4(a)), adjusted by the cash flows that are known to have occurred between the date of initial recognition of a group of insurance contracts and the transition date (or earlier date). The cash flows that are known to have occurred include cash flows resulting from contracts that ceased to exist before the transition date.

To the extent permitted by paragraph C8, an entity shall determine the discount rates that applied at the date of initial recognition of a group of insurance contracts (or subsequently):

(a)            using an observable yield curve that, for at least three years immediately before the transition date, approximates the yield curve estimated applying paragraphs 36 and B72–B85, if such an observable yield curve exists.

(b)            if the observable yield curve in paragraph (a) does not exist, estimate the discount rates that applied at the date of initial recognition (or subsequently) by determining an average spread between an observable yield curve and the yield curve estimated applying paragraphs 36 and B72–B85, and applying that spread to that observable yield curve. That spread shall be an average over at least three years immediately before the transition date.

To the extent permitted by paragraph C8, an entity shall determine the risk adjustment for non-financial risk at the date of initial recognition of a group of insurance contracts (or subsequently) by adjusting the risk adjustment for non-financial risk at the transition date by the expected release of risk before the transition date. The expected release of risk shall be determined by reference to the release of risk for similar insurance contracts that the entity issues at the transition date.

Applying paragraph B137, an entity may choose not to change the treatment of accounting estimates made in previous interim financial statements. To the extent permitted by paragraph C8, such an entity shall determine the contractual service margin or loss component at the transition date as if the entity had not prepared interim financial statements before the transition date.

To the extent permitted by paragraph C8, an entity shall use the same systematic and rational method the entity expects to use after the transition date when applying paragraph 28A to allocate any insurance acquisition cash flows paid (or for which a liability has been recognised applying another Australian Accounting Standard) before the transition date (excluding any amount relating to insurance contracts that ceased to exist before the transition date) to:

(a)            groups of insurance contracts that are recognised at the transition date; and

(b)            groups of insurance contracts that are expected to be recognised after the transition date.

Insurance acquisition cash flows paid before the transition date that are allocated to a group of insurance contracts recognised at the transition date adjust the contractual service margin of that group, to the extent insurance contracts expected to be in the group have been recognised at that date (see paragraphs 28C and B35C). Other insurance acquisition cash flows paid before the transition date, including those allocated to a group of insurance contracts expected to be recognised after the transition date, are recognised as an asset, applying paragraph 28B.

If an entity does not have reasonable and supportable information to apply paragraph C14B, the entity shall determine the following amounts to be nil at the transition date:

(a)            the adjustment to the contractual service margin of a group of insurance contracts recognised at the transition date and any asset for insurance acquisition cash flows relating to that group; and

(b)            the asset for insurance acquisition cash flows for groups of insurance contracts expected to be recognised after the transition date.

If applying paragraphs C12–C14D results in a contractual service margin at the date of initial recognition, to determine the contractual service margin at the date of transition an entity shall:

(a)            if the entity applies C13 to estimate the discount rates that apply on initial recognition, use those rates to accrete interest on the contractual service margin; and

(b)            to the extent permitted by paragraph C8, determine the amount of the contractual service margin recognised in profit or loss because of the transfer of services before the transition date, by comparing the remaining coverage units at that date with the coverage units provided under the group of contracts before the transition date (see paragraph B119).

If applying paragraphs C12–C14D results in a loss component of the liability for remaining coverage at the date of initial recognition, an entity shall determine any amounts allocated to the loss component before the transition date applying paragraphs C12–C14D and using a systematic basis of allocation.

For a group of reinsurance contracts held that provides coverage for an onerous group of insurance contracts and was entered into before or at the same time that the insurance contracts were issued, an entity shall establish a loss-recovery component of the asset for remaining coverage at the transition date (see paragraphs 66A–66B). To the extent permitted by paragraph C8, an entity shall determine the loss-recovery component by multiplying:

(a)            the loss component of the liability for remaining coverage for the underlying insurance contracts at the transition date (see paragraphs C16 and C20); and

(b)            the percentage of claims for the underlying insurance contracts the entity expects to recover from the group of reinsurance contracts held.

Applying paragraphs 14‒22, at the transition date an entity might include in an onerous group of insurance contracts both onerous insurance contracts covered by a group of reinsurance contracts held and onerous insurance contracts not covered by the group of reinsurance contracts held. To apply paragraph C16A in such cases, an entity shall use a systematic and rational basis of allocation to determine the portion of the loss component of the group of insurance contracts that relates to insurance contracts covered by the group of reinsurance contracts held.

If an entity does not have reasonable and supportable information to apply paragraph C16A, the entity shall not identify a loss-recovery component for the group of reinsurance contracts held.

To the extent permitted by paragraph C8, for contracts with direct participation features an entity shall determine the contractual service margin or loss component of the liability for remaining coverage at the transition date as:

(a)            the total fair value of the underlying items at that date; minus

(b)            the fulfilment cash flows at that date; plus or minus

(c)            an adjustment for:

(i)              amounts charged by the entity to the policyholders (including amounts deducted from the underlying items) before that date.

(ii)             amounts paid before that date that would not have varied based on the underlying items.

(iii)             the change in the risk adjustment for non-financial risk caused by the release from risk before that date. The entity shall estimate this amount by reference to the release of risk for similar insurance contracts that the entity issues at the transition date.

(iv)             insurance acquisition cash flows paid (or for which a liability has been recognised applying another Australian Accounting Standard) before the transition date that are allocated to the group (see paragraph C17A).

(d)            if (a)–(c) result in a contractual service margin – minus the amount of the contractual service margin that relates to services provided before that date. The total of (a)–(c) is a proxy for the total contractual service margin for all services to be provided under the group of contracts, ie before any amounts that would have been recognised in profit or loss for services provided. The entity shall estimate the amounts that would have been recognised in profit or loss for services provided by comparing the remaining coverage units at the transition date with the coverage units provided under the group of contracts before the transition date; or

(e)            if (a)–(c) result in a loss component – adjust the loss component to nil and increase the liability for remaining coverage excluding the loss component by the same amount.

To the extent permitted by paragraph C8, an entity shall apply paragraphs C14B‒C14D to recognise an asset for insurance acquisition cash flows, and any adjustment to the contractual service margin of a group of insurance contracts with direct participation features for insurance acquisition cash flows (see paragraph C17(c)(iv)).

For groups of insurance contracts that, applying paragraph C10, include contracts issued more than one year apart:

(a)            an entity is permitted to determine the discount rates at the date of initial recognition of a group specified in paragraphs B72(b)–B72(e)(ii) and the discount rates at the date of the incurred claim specified in paragraph B72(e)(iii) at the transition date instead of at the date of initial recognition or incurred claim.

(b)            if an entity chooses to disaggregate insurance finance income or expenses between amounts included in profit or loss and amounts included in other comprehensive income applying paragraphs 88(b) or 89(b), the entity needs to determine the cumulative amount of insurance finance income or expenses recognised in other comprehensive income at the transition date to apply paragraph 91(a) in future periods. The entity is permitted to determine that cumulative amount either by applying paragraph C19(b) or:

(i)              as nil, unless (ii) applies; and

(ii)             for insurance contracts with direct participation features to which paragraph B134 applies, as equal to the cumulative amount recognised in other comprehensive income on the underlying items.

For groups of insurance contracts that do not include contracts issued more than one year apart:

(a)            if an entity applies paragraph C13 to estimate the discount rates that applied at initial recognition (or subsequently), it shall also determine the discount rates specified in paragraphs B72(b)–B72(e) applying paragraph C13; and

(b)            if an entity chooses to disaggregate insurance finance income or expenses between amounts included in profit or loss and amounts included in other comprehensive income, applying paragraphs 88(b) or 89(b), the entity needs to determine the cumulative amount of insurance finance income or expenses recognised in other comprehensive income at the transition date to apply paragraph 91(a) in future periods. The entity shall determine that cumulative amount:

(i)              for insurance contracts for which an entity will apply the methods of systematic allocation set out in paragraph B131 – if the entity applies paragraph C13 to estimate the discount rates at initial recognition – using the discount rates that applied at the date of initial recognition, also applying paragraph C13;

(ii)             for insurance contracts for which an entity will apply the methods of systematic allocation set out in paragraph B132 – on the basis that the assumptions that relate to financial risk that applied at the date of initial recognition are those that apply on the transition date, ie as nil;

(iii)             for insurance contracts for which an entity will apply the methods of systematic allocation set out in paragraph B133 – if the entity applies paragraph C13 to estimate the discount rates at initial recognition (or subsequently) – using the discount rates that applied at the date of the incurred claim, also applying paragraph C13; and

(iv)             for insurance contracts with direct participation features to which paragraph B134 applies – as equal to the cumulative amount recognised in other comprehensive income on the underlying items.

Applying paragraph B137, an entity may choose not to change the treatment of accounting estimates made in previous interim financial statements. To the extent permitted by paragraph C8, such an entity shall determine amounts related to insurance finance income or expenses at the transition date as if it had not prepared interim financial statements before the transition date.

To apply the fair value approach, an entity shall determine the contractual service margin or loss component of the liability for remaining coverage at the transition date as the difference between the fair value of a group of insurance contracts at that date and the fulfilment cash flows measured at that date. In determining that fair value, an entity shall not apply paragraph 47 of AASB 13 Fair Value Measurement (relating to demand features).

For a group of reinsurance contracts held to which paragraphs 66A–66B apply (without the need to meet the condition set out in paragraph B119C), an entity shall determine the loss-recovery component of the asset for remaining coverage at the transition date by multiplying:

(a)            the loss component of the liability for remaining coverage for the underlying insurance contracts at the transition date (see paragraphs C16 and C20); and

(b)            the percentage of claims for the underlying insurance contracts the entity expects to recover from the group of reinsurance contracts held.

Applying paragraphs 14‒22, at the transition date an entity might include in an onerous group of insurance contracts both onerous insurance contracts covered by a group of reinsurance contracts held and onerous insurance contracts not covered by the group of reinsurance contracts held. To apply paragraph C20A in such cases, an entity shall use a systematic and rational basis of allocation to determine the portion of the loss component of the group of insurance contracts that relates to insurance contracts covered by the group of reinsurance contracts held.

In applying the fair value approach, an entity may apply paragraph C22 to determine:

(a)            how to identify groups of insurance contracts, applying paragraphs 14–24;

(b)            whether an insurance contract meets the definition of an insurance contract with direct participation features, applying paragraphs B101–B109;

(c)            how to identify discretionary cash flows for insurance contracts without direct participation features, applying paragraphs B98–B100; and

(d)            whether an investment contract meets the definition of an investment contract with discretionary participation features within the scope of AASB 17, applying paragraph 71.

An entity may choose to determine the matters in paragraph C21 using:

(a)            reasonable and supportable information for what the entity would have determined given the terms of the contract and the market conditions at the date of inception or initial recognition, as appropriate; or

(b)            reasonable and supportable information available at the transition date.

In applying the fair value approach, an entity may choose to classify as a liability for incurred claims a liability for settlement of claims incurred before an insurance contract was acquired in a transfer of insurance contracts that do not form a business or in a business combination within the scope of AASB 3.

In applying the fair value approach, an entity is not required to apply paragraph 22, and may include in a group contracts issued more than one year apart. An entity shall only divide groups into those including only contracts issued within a year (or less) if it has reasonable and supportable information to make the division. Whether or not an entity applies paragraph 22, it is permitted to determine the discount rates at the date of initial recognition of a group specified in paragraphs B72(b)–B72(e)(ii) and the discount rates at the date of the incurred claim specified in paragraph B72(e)(iii) at the transition date instead of at the date of initial recognition or incurred claim.

In applying the fair value approach, if an entity chooses to disaggregate insurance finance income or expenses between profit or loss and other comprehensive income, it is permitted to determine the cumulative amount of insurance finance income or expenses recognised in other comprehensive income at the transition date:

(a)            retrospectively – but only if it has reasonable and supportable information to do so; or

(b)            as nil – unless (c) applies; and

(c)            for insurance contracts with direct participation features to which paragraph B134 applies – as equal to the cumulative amount recognised in other comprehensive income from the underlying items.

In applying the fair value approach for an asset for insurance acquisition cash flows (see paragraph C5B(b)), at the transition date, an entity shall determine an asset for insurance acquisition cash flows at an amount equal to the insurance acquisition cash flows the entity would incur at the transition date for the rights to obtain:

(a)            recoveries of insurance acquisition cash flows from premiums of insurance contracts issued before the transition date but not recognised at the transition date;

(b)            future insurance contracts that are renewals of insurance contracts recognised at the transition date and insurance contracts described in (a); and

(c)            future insurance contracts, other than those in (b), after the transition date without paying again insurance acquisition cash flows the entity has already paid that are directly attributable to the related portfolio of insurance contracts.

At the transition date, the entity shall exclude from the measurement of any groups of insurance contracts the amount of any asset for insurance acquisition cash flows.

Notwithstanding the reference to the annual reporting period immediately preceding the date of initial application in paragraph C2(b), an entity may also present adjusted comparative information applying AASB 17 for any earlier periods presented, but is not required to do so. If an entity does present adjusted comparative information for any earlier periods, the reference to ‘the beginning of the annual reporting period immediately preceding the date of initial application’ in paragraph C2(b) shall be read as ‘the beginning of the earliest adjusted comparative period presented’.

An entity is not required to provide the disclosures specified in paragraphs 93–132 for any period presented before the beginning of the annual reporting period immediately preceding the date of initial application.

If an entity presents unadjusted comparative information and disclosures for any earlier periods, it shall clearly identify the information that has not been adjusted, disclose that it has been prepared on a different basis, and explain that basis.

An entity need not disclose previously unpublished information about claims development that occurred earlier than five years before the end of the annual reporting period in which it first applies AASB 17. However, if an entity does not disclose that information, it shall disclose that fact.

An entity that first applies AASB 17 and AASB 9 at the same time is permitted to apply paragraphs C28B–C28E (classification overlay) for the purpose of presenting comparative information about a financial asset if the comparative information for that financial asset has not been restated for AASB 9. Comparative information for a financial asset will not be restated for AASB 9 if either the entity chooses not to restate prior periods (see paragraph 7.2.15 of AASB 9), or the entity restates prior periods but the financial asset has been derecognised during those prior periods (see paragraph 7.2.1 of AASB 9).

An entity applying the classification overlay to a financial asset shall present comparative information as if the classification and measurement requirements of AASB 9 had been applied to that financial asset. The entity shall use reasonable and supportable information available at the transition date (see paragraph C2(b)) to determine how the entity expects the financial asset would be classified and measured on initial application of AASB 9 (for example, an entity might use preliminary assessments performed to prepare for the initial application of AASB 9).

In applying the classification overlay to a financial asset, an entity is not required to apply the impairment requirements in Section 5.5 of AASB 9. If, based on the classification determined applying paragraph C28B, the financial asset would be subject to the impairment requirements in Section 5.5 of AASB 9 but the entity does not apply those requirements in applying the classification overlay, the entity shall continue to present any amount recognised in respect of impairment in the prior period in accordance with AASB 139 Financial Instruments: Recognition and Measurement. Otherwise, any such amounts shall be reversed.

Any difference between the previous carrying amount of a financial asset and the carrying amount at the transition date that results from applying paragraphs C28B–C28C shall be recognised in opening retained earnings (or other component of equity, as appropriate) at the transition date.

An entity that applies paragraphs C28B–C28D shall:

(a)            disclose qualitative information that enables users of financial statements to understand:

(i)              the extent to which the classification overlay has been applied (for example, whether it has been applied to all financial assets derecognised in the comparative period);

(ii)             whether and to what extent the impairment requirements in Section 5.5 of AASB 9 have been applied (see paragraph C28C);

(b)            only apply those paragraphs to comparative information for reporting periods between the transition date to AASB 17 and the date of initial application of AASB 17 (see paragraphs C2 and C25); and

(c)            at the date of initial application of AASB 9, apply the transition requirements in AASB 9 (see Section 7.2 of AASB 9).

At the date of initial application of AASB 17, an entity that had applied AASB 9 to annual reporting periods before the initial application of AASB 17:

(a)            may reassess whether an eligible financial asset meets the condition in paragraph 4.1.2(a) or paragraph 4.1.2A(a) of AASB 9. A financial asset is eligible only if the financial asset is not held in respect of an activity that is unconnected with contracts within the scope of AASB 17. Examples of financial assets that would not be eligible for reassessment are financial assets held in respect of banking activities or financial assets held in funds relating to investment contracts that are outside the scope of AASB 17.

(b)            shall revoke its previous designation of a financial asset as measured at fair value through profit or loss if the condition in paragraph 4.1.5 of AASB 9 is no longer met because of the application of AASB 17.

(c)            may designate a financial asset as measured at fair value through profit or loss if the condition in paragraph 4.1.5 of AASB 9 is met.

(d)            may designate an investment in an equity instrument as at fair value through other comprehensive income applying paragraph 5.7.5 of AASB 9.

(e)            may revoke its previous designation of an investment in an equity instrument as at fair value through other comprehensive income applying paragraph 5.7.5 of AASB 9.

An entity shall apply paragraph C29 on the basis of the facts and circumstances that exist at the date of initial application of AASB 17. An entity shall apply those designations and classifications retrospectively. In doing so, the entity shall apply the relevant transition requirements in AASB 9. The date of initial application for that purpose shall be deemed to be the date of initial application of AASB 17.

An entity that applies paragraph C29 is not required to restate prior periods to reflect such changes in designations or classifications. The entity may restate prior periods only if it is possible without the use of hindsight. If an entity restates prior periods, the restated financial statements must reflect all the requirements of AASB 9 for those affected financial assets. If an entity does not restate prior periods, the entity shall recognise, in the opening retained earnings (or other component of equity, as appropriate) at the date of initial application, any difference between:

(a)            the previous carrying amount of those financial assets; and

(b)            the carrying amount of those financial assets at the date of initial application.

When an entity applies paragraph C29, it shall disclose in that annual reporting period for those financial assets by class:

(a)            if paragraph C29(a) applies – its basis for determining eligible financial assets;

(b)            if any of paragraphs C29(a)–C29(e) apply:

(i)              the measurement category and carrying amount of the affected financial assets determined immediately before the date of initial application of AASB 17; and

(ii)             the new measurement category and carrying amount of the affected financial assets determined after applying paragraph C29.

(c)            if paragraph C29(b) applies – the carrying amount of financial assets in the statement of financial position that were previously designated as measured at fair value through profit or loss applying paragraph 4.1.5 of AASB 9 that are no longer so designated.

When an entity applies paragraph C29, the entity shall disclose in that annual reporting period qualitative information that would enable users of financial statements to understand:

(a)            how it applied paragraph C29 to financial assets the classification of which has changed on initially applying AASB 17;

(b)            the reasons for any designation or de-designation of financial assets as measured at fair value through profit or loss applying paragraph 4.1.5 of AASB 9; and

(c)            why the entity came to any different conclusions in the new assessment applying paragraphs 4.1.2(a) or 4.1.2A(a) of AASB 9.

For a financial asset derecognised between the transition date and date of initial application of AASB 17, an entity may apply paragraphs C28B–C28E (classification overlay) for the purpose of presenting comparative information as if paragraph C29 had been applied to that asset. Such an entity shall adapt the requirements of paragraphs C28B–C28E so that the classification overlay is based on how the entity expects the financial asset would be designated applying paragraph C29 at the date of initial application of AASB 17.

[Deleted by the AASB]

This Standard repeals AASB 1038 Life Insurance Contracts issued in July 2004. Despite the repeal, after the time this Standard starts to apply under section 334 of the Corporations Act (either generally or in relation to an individual entity), the repealed Standard continues to apply in relation to any period ending before that time as if the repeal had not occurred.

[Note: When this Standard applies under section 334 of the Corporations Act (either generally or in relation to an individual entity), it supersedes the application of the repealed Standard.]

When applied or operative, this Standard supersedes Interpretation 1047 Professional Indemnity Claims Liabilities in Medical Defence Organisations.