{"id":"F2022L00398","name":"Accounting Standard AASB 2022-1 Amendments to Australian Accounting Standards – Initial Application of AASB 17 and AASB 9 – Comparative Information","slug":"accounting-standard-aasb-2022-1-amendments-to-australian-accounting-standards-initial-application-of","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":102336,"registerId":"commonwealth-F2022L00398-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Obtaining a copy of this Accounting Stan","sectionType":"part","heading":"Obtaining a copy of this Accounting Standard","content":"# Obtaining a copy of this Accounting Standard\n\nThis Standard is available on the AASB website: www.aasb.gov.au.\n\nAustralian Accounting Standards Board\n\nPO Box 204\n\nCollins Street West\n\nVictoria 8007\n\nAUSTRALIA\n\nPhone: (03) 9617 7600\n\nE-mail: standard@aasb.gov.au\n\nWebsite: www.aasb.gov.au","sortOrder":0},{"sectionNumber":"Other enquiries","sectionType":"part","heading":"Other enquiries","content":"# Other enquiries\n\nPhone: (03) 9617 7600\n\nE-mail: standard@aasb.gov.au\n\nCOPYRIGHT\n\n© Commonwealth of Australia 2022\n\nThis AASB Standard contains IFRS Foundation copyright material. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use subject to the inclusion of an acknowledgment of the source. Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to The National Director, Australian Accounting Standards Board, PO Box 204, Collins Street West, Victoria 8007.\n\nAll existing rights in this material are reserved outside Australia. Reproduction outside Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use only. Further information and requests for authorisation to reproduce for commercial purposes outside Australia should be addressed to the IFRS Foundation at www.ifrs.org.\n\nISSN 1036-4803","sortOrder":1},{"sectionNumber":"Contents","sectionType":"part","heading":"Contents","content":"# Contents\n\nPreface\n\nAccounting Standard\n\nAASB 2022-1 Amendments to Australian Accounting Standards – Initial Application of AASB 17 and AASB 9 – Comparative Information\n\nfrom page\n\nObjective 5\n\nApplication 5\n\nAmendments to AASB 17 5\n\nCommencement of the legislative instrument 7\n\naVailable on the AASB website\n\nIASB Basis for Conclusions – Amendments\n\nAustralian Accounting Standard AASB 2022-1 Amendments to Australian Accounting Standards – Initial Application of AASB 17 and AASB 9 – Comparative Information is set out on pages 5 – 7. All the paragraphs have equal authority.","sortOrder":2},{"sectionNumber":"Preface","sectionType":"part","heading":"Preface","content":"# Preface\n\n## Standards amended by AASB 2022-1\n\nThis Standard makes amendments to AASB 17 Insurance Contracts (July 2017).\n\nThese amendments arise from the issuance of International Financial Reporting Standard Initial Application of IFRS 17 and IFRS 9 – Comparative Information (Amendment to IFRS 17) by the International Accounting Standards Board (IASB) in December 2021.\n\n## Main features of this Standard\n\nMain requirements\n\nThis Standard amends AASB 17 to add a transition option referred to as ‘a classification overlay’ relating to comparative information about financial assets presented on initial application of AASB 17 and AASB 9 Financial Instruments at the same time. The amendments relate to financial assets for which comparative information presented on initial application of AASB 17 and AASB 9 has not been restated for AASB 9. Applying the transition option would permit an entity to present comparative information about such a financial asset as if the classification and measurement requirements of AASB 9 had been applied to that financial asset. This enables insurers to reduce potentially significant accounting mismatches between financial assets and insurance contract liabilities in the comparative period (or periods), to improve the usefulness of the comparative information in the general purpose financial statements.\n\nApplication date\n\nThis Standard applies to annual periods beginning on or after 1 January 2023. Earlier application is permitted.","sortOrder":3},{"sectionNumber":"Standards amended by AASB 2022-1","sectionType":"part","heading":"Standards amended by AASB 2022-1","content":"## Standards amended by AASB 2022-1\n\nThis Standard makes amendments to AASB 17 Insurance Contracts (July 2017).\n\nThese amendments arise from the issuance of International Financial Reporting Standard Initial Application of IFRS 17 and IFRS 9 – Comparative Information (Amendment to IFRS 17) by the International Accounting Standards Board (IASB) in December 2021.","sortOrder":4},{"sectionNumber":"Main features of this Standard","sectionType":"part","heading":"Main features of this Standard","content":"## Main features of this Standard\n\nMain requirements\n\nThis Standard amends AASB 17 to add a transition option referred to as ‘a classification overlay’ relating to comparative information about financial assets presented on initial application of AASB 17 and AASB 9 Financial Instruments at the same time. The amendments relate to financial assets for which comparative information presented on initial application of AASB 17 and AASB 9 has not been restated for AASB 9. Applying the transition option would permit an entity to present comparative information about such a financial asset as if the classification and measurement requirements of AASB 9 had been applied to that financial asset. This enables insurers to reduce potentially significant accounting mismatches between financial assets and insurance contract liabilities in the comparative period (or periods), to improve the usefulness of the comparative information in the general purpose financial statements.\n\nApplication date\n\nThis Standard applies to annual periods beginning on or after 1 January 2023. Earlier application is permitted.","sortOrder":5},{"sectionNumber":"Accounting Standard AASB 2022-1","sectionType":"part","heading":"Accounting Standard AASB 2022-1","content":"# Accounting Standard AASB 2022-1\n\nThe Australian Accounting Standards Board makes Accounting Standard AASB 2022-1 Amendments to Australian Accounting Standards – Initial Application of AASB 17 and AASB 9 – Comparative Information under section 334 of the Corporations Act 2001.\n\n|                     | Keith Kendall |\n| ------------------- | ------------- |\n| Dated 18 March 2022 | Chair – AASB  |","sortOrder":6},{"sectionNumber":"Objective","sectionType":"part","heading":"Objective","content":"## Objective\n\nThis Standard amends AASB 17 Insurance Contracts (July 2017) as a consequence of the issuance of International Financial Reporting Standard Initial Application of IFRS 17 and IFRS 9 – Comparative Information (Amendment to IFRS 17) by the International Accounting Standards Board in December 2021.","sortOrder":8},{"sectionNumber":"Application","sectionType":"part","heading":"Application","content":"## Application\n\nThe amendments set out in this Standard apply to entities and financial statements in accordance with the application of AASB 17 set out in AASB 1057 Application of Australian Accounting Standards.\n\nThis Standard applies to annual periods beginning on or after 1 January 2023\\. This Standard may be applied to annual reporting periods beginning before 1 January 2023.\n\nEllipses (…) are used in this Standard to help provide the context within which amendments are made and also to indicate text that is not amended.","sortOrder":9},{"sectionNumber":"Amendments to AASB 17 Insurance Contract","sectionType":"part","heading":"Amendments to AASB 17 Insurance Contracts","content":"## Amendments to AASB 17 Insurance Contracts\n\n| Paragraphs C2A, C28A–C28E and C33A and the heading before paragraph C28A are added. For ease of reading these paragraphs have not been underlined as new text. Paragraph C29 is not amended, but is included for reference. |\n| --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\nAppendix C  \nEffective date and transition\n\n    ...\n\nEffective date\n\n    ...\n    C2A 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.\n\nTransition\n\n    ...\n\nComparative information\n\n    ...\n\nEntities that first apply AASB 17 and AASB 9 at the same time\n\n    C28A 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).\n    C28B 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).\n    C28C 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.\n    C28D 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.\n    C28E An entity that applies paragraphs C28B–C28D shall:\n    (a) disclose qualitative information that enables users of financial statements to understand:\n    (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);\n    (ii) whether and to what extent the impairment requirements in Section 5.5 of AASB 9 have been applied (see paragraph C28C);\n    (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\n    (c) at the date of initial application of AASB 9, apply the transition requirements in AASB 9 (see Section 7.2 of AASB 9).\n\nRedesignation of financial assets\n\n    C29 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:\n    (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.\n    (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.\n    (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.\n    (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.\n    (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.\n    ...\n    C33A 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.","sortOrder":10},{"sectionNumber":"Commencement of the legislative instrume","sectionType":"part","heading":"Commencement of the legislative instrument","content":"## Commencement of the legislative instrument\n\nFor legal purposes, this legislative instrument commences on 31 December 2022.","sortOrder":11}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":false,"description":"This standard maintains its original narrow technical scope. It was always intended as a targeted transition relief mechanism for insurers adopting AASB 17 and AASB 9 concurrently. The amendments do not expand beyond this specific transitional context or create new ongoing obligations beyond the initial application period."},"complexity_factors":["Nested conditional logic: The classification overlay only applies if specific conditions are met (simultaneous adoption of AASB 17 and AASB 9, plus either no restatement chosen or asset derecognised)","Cross-references to multiple external standards: Heavy reliance on AASB 9 (paragraphs 7.2.15, 7.2.1, 4.1.2, 4.1.2A, 4.1.5, 5.7.5, Section 5.5, Section 7.2), AASB 139, AASB 1057, and the underlying IFRS 17 amendment","Defined terms requiring external knowledge: \"Transition date,\" \"date of initial application,\" \"derecognised,\" \"fair value through profit or loss,\" \"fair value through other comprehensive income\" — all defined in other standards","Exception to exception structure: Paragraph C28C creates an exception (no impairment required) to the general overlay rule, with its own sub-condition about continuing to use AASB 139","Interdependent paragraphs: C28A through C28E must be read as a cohesive operational scheme; C33A creates a parallel application for redesignation scenarios under C29","Dual-track accounting treatment: Entities must track both AASB 9 hypothetical treatment and actual historical treatment simultaneously for the same assets","Disclosure requirements tied to operational choices: Paragraph C28E mandates qualitative disclosures that depend on judgments made under C28B-C28C"],"plain_english_summary":"This technical standard lets insurers adopting AASB 17 and AASB 9 apply a \"classification overlay\" to comparative periods so prior financial assets can be presented as if AASB 9 had applied, improving comparability. It allows reasonable estimates, permits keeping AASB 139 impairment for comparatives, requires disclosure of overlay use, and applies to annual periods starting on or after 1 January 2023 (earlier application allowed)."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The Standard expands the transitional scope of AASB 17 by adding a new, optional 'classification overlay' for comparative information when AASB 17 and AASB 9 are adopted simultaneously. This is a substantive change to transition mechanics: it permits presenting comparatives as if AASB 9 had been applied (even where prior periods were not restated), prescribes how impairments, opening equity adjustments and disclosures are handled, and extends to assets derecognised between the transition date and initial application (paras C28A–C28E, C29, C33A)."},"complexity_factors":["Interaction of two major standards (AASB 17 and AASB 9) requires cross-standard judgements and coordination (paras C28A–C28B).","Optional application limited to cases where comparative periods were not restated increases decision complexity (para C28A).","Need to form expectations using \"reasonable and supportable information\" at the transition date creates judgment and documentation burden (para C28B).","Distinct treatment of impairment (non‑application of AASB 9 Section 5.5 within the overlay) forces entities to track and reconcile impairment under two models (para C28C).","Adjustment of differences to opening retained earnings (or other equity) at transition requires opening-balance accounting and audit scrutiny (para C28D).","Prescriptive disclosure requirements about scope and application of the overlay add reporting and disclosure workload (para C28E(a)–(b)).","Requirement to apply AASB 9 transition rules at initial application date creates sequencing and implementation complexity (para C28E(c)).","Additional redesignation and derecognition rules (C29 and C33A) extend the overlay to assets derecognised between transition date and initial application, requiring adaptations to the overlay rules."],"plain_english_summary":"This Standard adds a ‘classification overlay’ transition option so an entity that first applies AASB 17 and AASB 9 at the same time may present comparative information about a financial asset as if AASB 9’s classification and measurement had been applied, even when prior periods were not restated. The Board says this aims to reduce accounting mismatches between financial assets and insurance liabilities; affected insurers must use reasonable and supportable transition information and may adjust opening retained earnings and make specified disclosures (paras C28A–C28E, C29, C33A)."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/accounting-standard-aasb-2022-1-amendments-to-australian-accounting-standards-initial-application-of","history":"/api/acts/accounting-standard-aasb-2022-1-amendments-to-australian-accounting-standards-initial-application-of/history","analysis":"/api/acts/accounting-standard-aasb-2022-1-amendments-to-australian-accounting-standards-initial-application-of/analysis","conflicts":"/api/acts/accounting-standard-aasb-2022-1-amendments-to-australian-accounting-standards-initial-application-of/conflicts","importantCases":"/api/acts/accounting-standard-aasb-2022-1-amendments-to-australian-accounting-standards-initial-application-of/important-cases","documents":"/api/acts/accounting-standard-aasb-2022-1-amendments-to-australian-accounting-standards-initial-application-of/documents"}}