Tuesday, 23 July 2019 Sydney
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AASB Discussion Paper: Australian-specific Insurance Issues - Regulatory Disclosures and Public Sector Entities::

Have your say:  If insurance risk is economically the same, shouldn’t the accounting be the same?

Certain public sector insurance contracts or ‘insurance-like’ arrangements that arise by statute currently fall outside the scope of AASB 17 Insurance Contracts, although they are substantially no different from contracts within the scope of AASB 17.  This leads to diversity in practice and the possibility that some public sector entities may not appropriately reflect their insurance risk in their financial statements.

To enhance consistency and comparability in accounting for public sector insurance and insurance-like arrangements, this AASB Discussion Paper Australian-specific Insurance Issues – Regulatory Disclosures and Public Sector Entities proposes:

 

  • expanding AASB 17’s scope to include all insurance-like arrangements in the public sector;
  • criteria for identifying insurance-like arrangements;
  • implementation guidance for risk adjustments, contract boundaries and captive insurance arrangements in the public sector; and
  • public sector-specific illustrative examples.

The Discussion Paper also considers other Australian-specific issues – such as the retention of regulatory disclosures in the for-profit private sector – which the AASB no longer views as necessary.

We are keen to hear your views on these proposals and encourage you to submit your comments via the AASB websiteLinkedIn or email.