acquisition costs means the fixed and variable costs of acquiring new business, including commissions and similar distribution costs, and costs of accepting, issuing and initially recording policies
(Acquisition costs relate to the costs incurred in acquiring specific life insurance contracts during the reporting period. They do not include the general growth and development costs incurred by a life insurer.)
cedant means the policyholder under a life reinsurance contract
deposit component means a contractual component that is not accounted for as a derivative under AASB 9 Financial Instruments and would be within the scope of AASB 9 Financial Instruments if it were a separate instrument
direct insurance contract means an insurance contract that is not a reinsurance contract
discretionary participation feature means a contractual right to receive, as a supplement to guaranteed benefits, additional benefits:
(a) that are likely to be a significant portion of the total contractual benefits;
(b) whose amount or timing is contractually at the discretion of the issuer; and
(c) that are contractually based on:
(i) the performance of a specified pool of contracts or a specified type of contract;
(ii) realised and/or unrealised investment returns on a specified pool of assets held by the issuer; or
(iii) the profit or loss of the company, fund or other entity that issues the contract
fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. (See AASB 13.)
financial risk means the risk of a possible future change in one or more of a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, a credit rating or credit index or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract
general insurance contract means an insurance contract that is not a life insurance contract
guaranteed benefits means payments or other benefits to which a particular policyholder or investor has an unconditional right that is not subject to the contractual discretion of the issuer
guaranteed element means an obligation to pay guaranteed benefits included in a contract that contains a discretionary participation feature
insurance asset means an insurer’s net contractual rights under an insurance contract
insurance contract means a contract under which one party (the insurer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder
Section 20 - AASB 1038 - Life Insurance Contracts - July 2004 - Definitions | Zoe
(Refer to Appendix for additional guidance in applying this definition.)
insurance liability means an insurer’s net contractual obligations under an insurance contract
insurance risk means risk, other than financial risk, transferred from the holder of a contract to the issuer
insured event means an uncertain future event covered by an insurance contract and creates insurance risk
insurer means the party that has an obligation under an insurance contract to compensate a policyholder if an insured event occurs
investment-linked means where the benefit amount under a life insurance contract or life investment contract is directly linked to the market value of the investments held in the particular investment-linked fund
liability adequacy test means an assessment of whether the carrying amount of an insurance liability needs to be increased (or the carrying amount of the related deferred acquisition costs or related intangible assets decreased) based on a review of future cash flows
life insurance business means all life insurance contract and life investment contract business conducted by a life insurer
life insurance contract means an insurance contract, or a financial instrument with a discretionary participation feature, regulated under the Life Insurance Act, and similar contracts issued by entities operating outside Australia
(Private health insurance contracts issued under the National Health Act 1953 but written by friendly societies registered under the Life Insurance Act, are not life insurance contracts but are general insurance contracts.)
life insurance liability means a life insurer’s net contractual obligations under a life insurance contract
life insurer means an entity registered under the Life Insurance Act 1995, that issues life insurance contracts or life investment contracts, and similar entities operating outside Australia
life investment contract means a contract which is regulated under the Life Insurance Act 1995 but which does not meet the definition of a life insurance contract in this Standard, and similar contracts issued by entities operating outside Australia
life investment contract liability means a life insurer’s net contractual obligations under a life investment contract which arise under the financial instrument component of a life investment contract
life reinsurance contract means a life insurance contract issued by one insurer (the reinsurer) to compensate another insurer (the cedant) for losses on one or more contracts issued by the cedant
non-investment-linked business means life insurance business other than investment-linked business
policyholder means a party that has a right to compensation under an insurance contract if an insured event occurs
policy liability means a liability that arises under a life insurance contract or a life investment contract including any asset or liability arising in respect of the management services element of a life investment contract
reinsurance assets means a cedant’s net contractual rights under a reinsurance contract
reinsurance contract means an insurance contract issued by one insurer (the reinsurer) to compensate another insurer (the cedant) for losses on one or more contracts issued by the cedant
reinsurer means the party that has an obligation under a reinsurance contract to compensate a cedant if an insured event occurs
separate financial statements are those presented by a parent, an investor in an associate or a venturer in a joint venture, in which the investments are accounted for on the basis of the direct equity interest rather than on the basis of the reported results and net assets of the investees
statutory fund means a statutory fund under the Life Insurance Act 1995
unbundle means to account for the components of a contract as if they were separate contracts
20.2 The following terms are defined in AASB 132 Financial Instruments: Presentation and are used in this Standard with the meaning specified in AASB 132:
(a) financial asset;
(b) financial instrument; and
(c) financial liability.
Appendix A Definition of an Insurance Contract
This appendix is an integral part of AASB 1038.
1 This Appendix gives guidance on the definition of an insurance contract in section 20 of this Standard. It addresses the following issues:
(a) the term ‘uncertain future event’ (paragraphs 2-4);
(b) insurance risk and other risks (paragraphs 5-14);
(c) examples of life insurance contracts (paragraphs 15-18);
(d) significant insurance risk (paragraphs 19-25); and
(e) changes in the level of insurance risk (paragraphs 26 and 27).
Uncertain Future Event
2 Uncertainty (or risk) is the essence of an insurance contract. Accordingly, at least one of the following is uncertain at the inception of an insurance contract:
(a) whether an insured event will occur;
(b) when it will occur; or
(c) how much the insurer will need to pay if it occurs.
3 In some insurance contracts, the insured event is the discovery of a loss during the term of the contract, even if the loss arises from an event that occurred before the inception of the contract. In other insurance contracts, the insured event is an event that occurs during the term of the contract, even if the resulting loss is discovered after the end of the contract term.
4 Some insurance contracts cover events that have already occurred, but whose financial effect is still uncertain. An example is a reinsurance contract that covers the direct insurer against adverse development of claims already reported by policyholders. In such contracts, the insured event is the discovery of the ultimate cost of those claims.
Distinction between Insurance Risk and Other Risks
5 The definition of an insurance contract refers to insurance risk, which this Standard defines as risk, other than financial risk, transferred from the holder of a contract to the issuer. A contract that exposes the issuer to financial risk without significant insurance risk is not an insurance contract.
6 The definition of financial risk in section 20 of this Standard includes a list of financial and non-financial variables. That list includes non-financial variables that are not specific to a party to the contract, such as an index of earthquake losses in a particular region or an index of temperatures in a particular city. It excludes non‑financial variables that are specific to a party to the contract.
7 Some contracts expose the issuer to financial risk, in addition to significant insurance risk. For example, many life insurance contracts both guarantee a minimum rate of return to policyholders (creating financial risk) and promise death benefits that at some times significantly exceed the policyholder’s account balance (creating insurance risk in the form of mortality risk). Such contracts are insurance contracts.
8 Under some contracts, an insured event triggers the payment of an amount linked to a price index. Such contracts are insurance contracts, provided the payment that is contingent on the insured event can be significant. For example, a life-contingent annuity linked to a cost-of-living index transfers insurance risk because payment is triggered by an uncertain event – the survival of the annuitant. The link to the price index is an embedded derivative, but it also transfers insurance risk. If the resulting transfer of insurance risk is significant, the embedded derivative meets the definition of an insurance contract, in which case it need not be separated and measured at fair value (see paragraph 2.2.1 of this Standard).
9 The definition of insurance risk refers to risk that the insurer accepts from the policyholder. In other words, insurance risk is a pre‑existing risk transferred from the policyholder to the insurer. Thus, a new risk created by the contract is not insurance risk.
10 The definition of an insurance contract refers to an adverse effect on the policyholder. The definition does not limit the payment by the insurer to an amount equal to the financial impact of the adverse event. For example, the definition does not limit payment under a term life insurance contract to the financial loss suffered by the deceased’s dependants, nor does it preclude the payment of predetermined amounts to quantify the loss caused by death or an accident.
11 Some contracts require a payment if a specified uncertain event occurs, but do not require an adverse effect on the policyholder as a precondition for payment. Such a contract is not an insurance contract even if the holder uses the contract to mitigate an underlying risk exposure. For example, if the holder uses a derivative to hedge an underlying non-financial variable that is correlated with cash flows from an asset of the entity, the derivative is not an insurance contract because payment is not conditional on whether the holder is adversely affected by a reduction in the cash flows from the asset. Conversely, the definition of an insurance contract refers to an uncertain event for which an adverse effect on the policyholder is a contractual precondition for payment. This contractual precondition does not require the insurer to investigate whether the event actually caused an adverse effect, but permits the insurer to deny payment if it is not satisfied that the event caused an adverse effect.
12 Lapse or persistency risk (i.e. the risk that the counterparty will cancel the contract earlier or later than the issuer had expected in pricing the contract) is not insurance risk because the payment to the counterparty is not contingent on an uncertain future event that adversely affects the counterparty. Similarly, expense risk (i.e. the risk of unexpected increases in the administrative costs associated with the servicing of a contract, rather than in costs associated with insured events) is not insurance risk because an unexpected increase in expenses does not adversely affect the counterparty.
13 Therefore, a contract that exposes the issuer to lapse risk, persistency risk or expense risk is not an insurance contract unless it also exposes the issuer to insurance risk. However, if the issuer of that contract mitigates that risk by using a second contract to transfer part of that risk to another party, the second contract exposes that other party to insurance risk.
14 An insurer can accept significant insurance risk from the policyholder only if the insurer is an entity separate from the policyholder. In the case of a mutual insurer, the mutual accepts risk from each policyholder and pools that risk. Although policyholders bear that pooled risk collectively in their capacity as owners, the mutual has still accepted the risk that is the essence of an insurance contract.
Examples of Life Insurance Contracts
15 The following are examples of contracts that are life insurance contracts, if the transfer of insurance risk is significant:
(a) life insurance contracts (although death is certain, it is uncertain when death will occur or, for some types of life insurance, whether death will occur within the period covered by the insurance);
(b) life-contingent annuities and pensions (i.e. contracts that provide compensation for the uncertain future event – the survival of the annuitant or pensioner – to assist the annuitant or pensioner in maintaining a given standard of living, which would otherwise be adversely affected by his or her survival); and
(c) life reinsurance contracts.
16 The following are examples of items that are not life insurance contracts:
(a) investment contracts that are governed under the Life Insurance Act 1995 but do not expose the insurer to significant insurance risk, for example life insurance contracts in which the insurer bears no significant mortality risk (such contracts are non-insurance financial instruments or service contracts: see paragraphs 17 and 18 of this Appendix);
(b) contracts that have the legal form of insurance, but pass all significant insurance risk back to the policyholder through non-cancellable and enforceable mechanisms that adjust future payments by the policyholder as a direct result of insured losses, for example some financial reinsurance contracts or some group contracts (such contracts are normally non-insurance financial instruments or service contracts: see paragraphs 17 and 18 of this Appendix);
(c) self-insurance, in other words retaining a risk that could have been covered by insurance (there is no insurance contract because there is no agreement with another party);
(d) contracts (such as gambling contracts) that require a payment if a specified uncertain future event occurs, but do not require, as a contractual precondition for payment, that the event adversely affects the policyholder. However, this does not preclude the specification of a predetermined payout to quantify the loss caused by a specified event such as death or an accident;
(e) derivatives that expose one party to financial risk but not insurance risk, because they require that party to make payment based solely on changes in one or more of a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (see AASB 9); and
(f) general insurance contracts.
17 If the contracts described in paragraph 16 of this Appendix create financial assets or financial liabilities, they are within the scope of AASB 9. Among other things, this means that the parties to the contract use what is sometimes called deposit accounting, which involves the following:
(a) one party recognises the consideration received as a financial liability, rather than as revenue; and
(b) the other party recognises the consideration paid as a financial asset, rather than as an expense.
18 If the contracts described in paragraph 16 of this Appendix do not create financial assets or financial liabilities, AASB 15 applies. Under AASB 15, revenue is recognised when (or as) an entity satisfies a performance obligation by transferring a promised good or service to a customer in an amount that reflects the consideration to which the entity expects to be entitled.
Significant Insurance Risk
19 A contract is an insurance contract only if it transfers significant insurance risk. Paragraphs 5 to 14 of this Appendix discuss insurance risk. The following paragraphs discuss the assessment of whether insurance risk is significant.
20 Insurance risk is significant if, and only if, an insured event could cause an insurer to pay significant additional benefits in any scenario, excluding scenarios that lack commercial substance (i.e. have no discernible effect on the economics of the transaction). If significant additional benefits would be payable in scenarios that have commercial substance, the condition in the previous sentence may be met even if the insured event is extremely unlikely or even if the expected (i.e. probability-weighted) present value of contingent cash flows is a small proportion of the expected present value of all the remaining contractual cash flows.
21 The additional benefits described in paragraph 20 of this Appendix refer to amounts that exceed those that would be payable if no insured event occurred (excluding scenarios that lack commercial substance). Those additional amounts include claims handling and claims assessment costs, but exclude:
(a) the loss of the ability to charge the policyholder for future services. For example, in an investment-linked life insurance contract, the death of the policyholder means that the insurer can no longer perform investment management services and collect a fee for doing so. However, this economic loss for the insurer does not reflect insurance risk, just as a mutual fund manager does not take on insurance risk in relation to the possible death of the client. Therefore, the potential loss of future investment management fees is not relevant in assessing how much insurance risk is transferred by a contract;
(b) waiver on death of charges that would be made on cancellation or surrender. Because the contract brought those charges into existence, the waiver of these charges does not compensate the policyholder for a pre-existing risk. Hence, they are not relevant in assessing how much insurance risk is transferred by a contract;
(c) a payment conditional on an event that does not cause a significant loss to the holder of the contract. For example, consider a contract that requires the issuer to pay one million currency units if an asset suffers physical damage causing an insignificant economic loss of one currency unit to the holder. In this contract, the holder transfers to the insurer the insignificant risk of losing one currency unit. At the same time, the contract creates non-insurance risk that the issuer will need to pay 999,999 currency units if the specified event occurs. Because the issuer does not accept significant insurance risk from the holder, this contract is not an insurance contract; and
(d) possible reinsurance recoveries. The insurer accounts for these separately.
22 An insurer shall assess the significance of insurance risk contract by contract, rather than by reference to materiality to the financial statements[1]. Thus, insurance risk may be significant even if there is a minimal probability of material losses for a whole book of contracts. This contract-by-contract assessment makes it easier to classify a contract as an insurance contract. However, if a relatively homogeneous book of small contracts is known to consist of contracts that all transfer insurance risk, an insurer need not examine each contract within that book to identify a few non-derivative contracts that transfer insignificant insurance risk.
23 It follows from paragraphs 20 to 22 of this Appendix that if a contract pays a death benefit exceeding the amount payable on survival, the contract is an insurance contract unless the additional death benefit is insignificant (judged by reference to the contract rather than to an entire book of contracts). As noted in paragraph 21(b) of this Appendix, the waiver on death of cancellation or surrender charges is not included in this assessment if this waiver does not compensate the policyholder for a pre‑existing risk. Similarly, an annuity contract that pays out regular sums for the rest of a policyholder’s life is an insurance contract, unless the aggregate life contingent payments are insignificant.
24 Paragraph 20 of this Appendix refers to additional benefits. These additional benefits could include a requirement to pay benefits earlier if the insured event occurs earlier and the payment is not adjusted for the time value of money. An example is whole life insurance for a fixed amount (in other words, insurance that provides a fixed death benefit whenever the policyholder dies, with no expiry date for the cover). It is certain that the policyholder will die, but the date of death is uncertain. The insurer will suffer a loss on those individual contracts for which policyholders die early, even if there is no overall loss on the whole book of contracts.
25 If an insurance contract is unbundled into a deposit component and an insurance component, the significance of insurance risk transfer is assessed by reference to the insurance component. The significance of insurance risk transferred by an embedded derivative is assessed by reference to the embedded derivative.
Changes in the Level of Insurance Risk
26 Some contracts do not transfer any insurance risk to the issuer at inception, although they do transfer insurance risk at a later time. For example, consider a contract that provides a specified investment return and includes an option for the policyholder to use the proceeds of the investment on maturity to buy a life-contingent annuity at the current annuity rates charged by the insurer to other new annuitants when the policyholder exercises the option. The contract transfers no insurance risk to the issuer until the option is exercised, because the insurer remains free to price the annuity on a basis that reflects the insurance risk transferred to the insurer at that time. However, if the contract specifies the annuity rates (or a basis for setting the annuity rates), the contract transfers insurance risk to the issuer at inception.
27 A contract that qualifies as an insurance contract remains an insurance contract until all rights and obligations are extinguished or expire.
Compilation details Accounting Standard AASB 1038 Life Insurance Contracts (as amended)
This compiled Standard applies to annual reporting periods beginning on or after 1 January 2022 but before 1 January 2023. It takes into account amendments up to and including 20 December 2021 and was prepared on 7 April 2022 by the staff of the Australian Accounting Standards Board (AASB).
This compilation is not a separate Accounting Standard made by the AASB. Instead, it is a representation of AASB 1038 (July 2004) as amended by other Accounting Standards, which are listed in the table below.
Table of Standards
Standard
Date made
FRL identifier
Commence-ment date
Effective date (annual reporting periods … on or after …)
Application, saving or transitional provisions
AASB 1038
15 Jul 2004
F2005B01402
24 May 2005
(beginning) 1 Jan 2005
–
AASB 2005-4
9 Jun 2005
F2005L01708
30 Jun 2005
(beginning) 1 Jan 2006
see (a) below
AASB 2005-10
5 Sep 2005
F2005L02840
27 Sep 2005
(beginning) 1 Jan 2007
see (b) below
AASB 2005-12
8 Dec 2005
F2005L04207
24 Dec 2005
(ending) 31 Dec 2005
see (c) below
AASB 2007-3
26 Feb 2007
F2007L00551
8 Mar 2007
(beginning) 1 Jan 2009
see (d) below
AASB 2007-4
30 Apr 2007
F2007L01669
16 Jun 2007
(beginning) 1 Jul 2007
see (e) below
AASB 2007-8
24 Sep 2007
F2007L04130
26 Oct 2007
(beginning) 1 Jan 2009
see (f) below
AASB 2007-10
13 Dec 2007
F2008L04269
29 Oct 2008
(beginning) 1 Jan 2009
see (f) below
AASB 2008-5
24 Jul 2008
F2008L03030
16 Aug 2008
(beginning) 1 Jan 2009
see (g) below
AASB 2009-2
22 Apr 2009
F2009L01638
9 May 2009
(beginning) 1 Jan 2009<br>and (ending) 30 Apr 2009
see (h) below
AASB 2009-6
25 Jun 2009
F2009L02729
17 Jul 2009
(beginning) 1 Jan 2009<br>and (ending) 30 Jun 2009
see (i) below
Erratum
5 Oct 2009
n/a
n/a
(beginning) 1 Jan 2009<br>and (ending) 30 Jun 2009
see (j) below
AASB 2009-11
7 Dec 2009
F2009L04690
23 Dec 2009
(beginning) 1 Jan 2015
see (k) below
AASB 2010-5
27 Oct 2010
F2010L03081
25 Nov 2010
(beginning) 1 Jan 2011
see (l) below
AASB 2010-7
6 Dec 2010
F2011L00315
1 Mar 2011
(beginning) 1 Jan 2015
see (m) below
AASB 2011-7
29 Aug 2011
F2011L02017
5 Oct 2011
(beginning) 1 Jan 2013
see (n) below
AASB 2011-8
2 Sep 2011
F2011L02038
8 Oct 2011
(beginning) 1 Jan 2013
see (o) below
AASB 2012-10
18 Dec 2012
F2013L00080
23 Jan 2013
(beginning) 1 Jan 2013
see (p) below
AASB 2013-2
13 Mar 2013
F2013L00579
29 Mar 2014
(ending) 31 Mar 2013
see (q) below
AASB 2013-7
14 Oct 2013
F2013L01816
22 Oct 2013
(beginning) 1 Jan 2014
see (r) below
AASB 2013-9
20 Dec 2013
F2014L00370
1 Apr 2014
Pt A (ending) 20 Dec 2013<br>Pt B (ending) 1 Jan 2014
see (s) below<br>see (t) below
AASB 2014-5
12 Dec 2014
F2015L00107
12 Dec 2014
(beginning) 1 Jan 2018
see (u) below
AASB 2014-7
17 Dec 2014
F2015L00135
17 Dec 2014
(beginning) 1 Jan 2018
see (v) below
AASB 2015-8
22 Oct 2015
F2015L01840
31 Dec 2016
(beginning) 1 Jan 2017
see (w) below
AASB 2016-7
9 Dec 2016
F2017L00043
31 Dec 2016
(beginning) 1 Jan 2018
see (x) below
AASB 17
19 Jul 2017
F2017L01184
31 Dec 2022
(beginning) 1 Jan 2023
not compiled*
AASB 2019-1
21 May 2019
F2019L00966
31 Dec 2019
(beginning) 1 Jan 2020
see (y) below
AASB 2021-7
20 Dec 2021
F2021L01883
31 Dec 2021
(beginning) 1 Jan 2022
see (z) below
* The amendments made by this Standard are not included in this compilation, which presents the principal Standard as applicable to annual periods beginning on or after 1 January 2022 but before 1 January 2023.
(a) Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2006.
(b) Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2007.
(c) Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 that end before 31 December 2005.
(d) Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2009, provided that AASB 8 Operating Segments is also applied to such periods.
(e) Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 July 2007.
(f) Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2009, provided that AASB 101 Presentation of Financial Statements (September 2007) is also applied to such periods.
(g) Entities may elect to apply this Standard, or its amendments to individual Standards, to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2009.
(h) Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2009 and to annual reporting periods beginning on or after 1 January 2009 that end before 30 April 2009.
(i) Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2009, provided that AASB 101 Presentation of Financial Statements (September 2007) is also applied to such periods, and to annual reporting periods beginning on or after 1 January 2009 that end before 30 June 2009.
(j) Entities may elect to apply this Erratum to annual reporting periods beginning on or after 1 January 2005, provided that AASB 2009-6 Amendments to Australian Accounting Standards is also applied to such periods.
(k) AASB 2009-11 has been amended by AASB 2010-10 (made 31 December 2010) and AASB 2012-6 (made 10 September 2012).
Entities may elect to apply this Standard to annual reporting periods ending on or after 31 December 2009 that begin before 1 January 2015, provided that AASB 9 (2009) Financial Instruments is also applied to such periods.
(l) Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2011.
(m) AASB 2010-7 has been amended by AASB 2010-10 (made 31 December 2010) and AASB 2012-6 (made 10 September 2012).
Entities may elect to apply this Standard as set out in paragraph 6 of AASB 2010-7.
(n) AASB 2011-7 has been amended by AASB 2012-6 (made 10 September 2012) and AASB 2012-10 (made 18 December 2012).
For-profit entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2013. The Standard applies for not-for-profit entities to annual reporting periods beginning on or after 1 January 2014. Not-for-profit entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2013 but before 1 January 2014. If an entity elects to apply this Standard to such annual reporting periods, it shall apply AASB 10 Consolidated Financial Statements and associated Standards to such periods.
(o) AASB 2011-8 has been amended by AASB 2011-10 (made 5 September 2011) and AASB 2012-6 (made 10 September 2012).
Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2013, provided that AASB 13 Fair Value Measurement is also applied to such periods.
(p) Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2013.
(q) Entities may elect to apply this Standard to annual reporting periods ending on or after 1 January 2013 but before 31 March 2013.
(r) Entities may elect to apply this Standard to annual reporting periods ending on or after 1 January 2005 but before 1 January 2014, provided that AASB 10 Consolidated Financial Statements is also applied to such periods.
(s) Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 that end before 20 December 2013, provided that AASB CF 2013-1 Amendments to the Australian Conceptual Framework and AASB 1048 Interpretation of Standards (December 2013) are also applied to the such periods.
(t) Early application of Part B of this Standard is not permitted.
(u) Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2018, provided that AASB 15 Revenue from Contracts with Customers is also applied to such periods. AASB 2015-8 updated the application date of the amendments in this Standard (and of AASB 15) to 1 January 2018.
(v) Entities may elect to apply this Standard to annual reporting periods beginning after 24 July 2014 but before 1 January 2018, provided that AASB 9 Financial Instruments (2014) is also applied to such periods.
(w) The amendments made by AASB 2014-5 are no longer required to apply to annual reporting periods beginning on or after 1 January 2017 but before 1 January 2018, as a consequence of AASB 2015-8 deferring the effective date of AASB 15 (and its consequential amendments in AASB 2014-5) from 1 January 2017 to 1 January 2018.
(x) AASB 2016-7 deferred the effective date of AASB 15 (and its consequential amendments in AASB 2014-5) for not-for-profit entities to annual reporting periods beginning on or after 1 January 2019, instead of 1 January 2018. However, earlier application of AASB 1038 (2004) incorporating the text that relates to AASB 15 is permitted, provided that AASB 15 is also applied.
(y) Entities may elect to apply this Standard to annual periods beginning before 1 January 2020.
(z) Entities may elect to apply this Standard to annual periods beginning before 1 January 2022.
The following amendments are not shown in the above Table of amendments:
References to ‘financial report(s)’ were amended to ‘financial statements’ by AASB 2007-8 and AASB 2007-10, except in relation to specific Corporations Act references and interim financial reports.
References to ‘income statement’ and ‘balance sheet’ were amended to ‘statement of comprehensive income’ and ‘statement of financial position’ respectively by AASB 2007-8.
References to ‘reporting date’ and ‘each reporting date’ were amended to ‘end of the reporting period’ and ‘the end of each reporting period’ respectively by AASB 2007-8.
[1] For this purpose, contracts entered into simultaneously with a single counterparty (or contracts that are otherwise interdependent) form a single contract.