AASB 2013-2 - Amendments to AASB 1038 – Regulatory Capital - March 2013

AASB Standard AASB 2013- 2 March 2013 Amendments to AASB 1038 – Regulatory Capital Obtaining a Copy of this Accounting Standard This Standard is available o n the AASB website: www.aasb.gov .au. Alternatively, printed copies of this Standard are available for purchase by contacting: The Customer Service Officer Australian Accounting Standards Board Level 7 600 Bourke Street Melbourne Victoria AUSTRALIA Postal address: PO Box 204 Collins St reet West Vic toria 8007 AUSTRALIA Phone: (03) 9617 7637 Fax: (03) 9617 7608 E-mail: [email protected] .au Website: www.aasb.gov .au Other Enquiries Phone: (03) 9617 7600 Fax: (03) 9617 7608 E-mail: [email protected] .au COPYRIGHT © Commonwealth of Australia 2013 This work is copyright. Apart from any use as permitted under the Copyright Act 1968 , no part may be reproduced by any process without prior written permission. Requests and enquiries concerning reproduction and rights should be addressed to The Director of Finance and Administration, Australian Accounting Standards Board, PO Box 204, Collins Street West, Victoria 8007. ISSN 1036-4803 CONTENTS Preface Accounting Standard AASB 2013- 2 AmenDMENTS TO aUSTRALIAN aCCOUNTING sTANDARDS – regulatory capital Paragraphs Objective 1 Application 2 – 5 Amendments to AASB 1038 6 Australian Accounting Standard AASB 2013- 2 Amendments to Australian Accounting Standards – Regulatory Capital is set out in paragraphs 1 – 6 . All the pa ragraphs have equal authority. Preface Introduction This Standard makes amendments to Australian Accounting Standard AASB 1038 Life Insurance Contracts . These a mendm ents arise as a consequence of changes to the Australian Prudential Regulation Authority’s reporting requirements relating to life insurers . Main Features of this Standard Application Date This Standard applies to annual reporting periods ending on or after 31 March 2013. Early application is permitted for annual reporting periods ending on or after 1 January 2013 but before 31 March 2013 . Main Requirements This Standard makes amendments to AASB 1038 as a consequence of changes to the Australian Prudential Regulation Authority’s reporting requirements relating to life insurers, particularly P rudential Standard LPS 110 Capital Adequacy , applicable from 1 January 2013 . Primarily the amendments align terminology by changing references to ‘solvency’ in AASB 1038 to ‘capital’ and remove a related explanatory paragraph. aCCOUNTING STANDARD AASB 2013- 2 The Australian Accounting Standards Board makes Accounting Standard AASB 2013- 2 Amendments to Australian A ccounting Standards – Regulatory Capital under section 334 of the Corporations Act 2001 . Kevin M. Stevenson Dated 13 March 2013 Chair – AASB aCCOUNTING STANDARD AASB 2013- 2 AMENDMENTS TO AUSTRALIAN A CCOUNTING STANDARDS – REGULATORY CAPITAL Objective 1 The o bjective of this St andard is to make amendments to AASB 1038 Life Insurance Contracts a s a consequence of changes to the Australian Prudential Regulation Authority ’s reporting requirements relating to life insurers, particularly P rudential Standard LPS 110 Capital Adequacy , issued in January 2013 , as it relates to the prescribed capital amount . Application 2 T his Standard applies to each entity that is: (a) a life insurer ; or (b) the parent in a grou p that includes a life insurer; when the entity: (c) is a reporting entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act; ( d ) is an other reporting entity and prepares general purpose financial statements; or (e) prepares financial statements that are, or are held out to be, general purpose financial statements. 3 This Standard applies to annual reporting periods ending on or after 31 March 2013 . 4 This Standard may be applied to annual reporting periods ending on or after 1 January 2013 but before 31 March 2013 . When an entity applies this Standard to such an annual reporting period , it shall disclose that fact. 5 This Standard uses underlining, striking out and other typographical material to identify some of the amendments, in order to make the amendments more understandable. However, the amendments made by this Standard do not include that underlining, striking out or other typographical material. Amendments to AASB 1038 6 The heading before paragraph 17.8 and paragraph s 17.8 and 17.10 are amended as follows (new text is underlined and deleted text is struck through) and p aragraph 17.8.1 is deleted : Solvency Regulatory Capital Information 1 7.8 A life insurer shall disclose the regulatory solvency capital position of each statutory fund. In consolidated financial statements A a group shall disclose the regulatory solvency capital position of each life insurer in the group. Actuarial Information 17.10 The following shall be disclosed in notes: (a) if other than the end of the reporting period, the effective date of the actuarial report on policy liabilities and regulatory solvency capital reserves; (b) …