The new insurance standard, IFRS 17, applies to annual periods beginning on or after 1 January 2023. Once IFRS 17 becomes effective, Australian-specific insurance standards, AASB 1023 General Insurance Contracts and AASB 1038 Life Insurance Contracts will no longer apply.
It should be noted that IFRS 17 does not apply to superannuation entities regulated by APRA that apply AASB 1056 Superannuation Entities. It also does not apply to not-for-profit public sector entities, which will continue to apply AASB 4, AASB 1023 and AASB 1038 after 1 January 2023.
IFRS 17 establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts issued. It also requires similar principles to be applied to:
- Reinsurance contracts held, and
- Investment contracts with discretionary participation features issued.
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