17This Standard provides two an exceptions to the principle in paragraph 15:

17 This Standard provides two an exceptions to the principle in paragraph 15:
(a) classification of a lease contract as either an operating lease or a finance lease in accordance with AASB 117 Leases.; and
(b) \[deleted\]classification of a contract as an insurance contract in accordance with AASB 4 Insurance Contracts.
The acquirer shall classify those contracts on the basis of the contractual terms and other factors at the inception of the contract (or, if the terms of the contract have been modified in a manner that would change its classification, at the date of that modification, which might be the acquisition date).
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Measurement principle

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20 Paragraphs 24–3131A specify the types of identifiable assets and liabilities that include items for which this Standard provides limited exceptions to the measurement principle.

Exceptions to the recognition or measurement principles

21 This Standard provides limited exceptions to its recognition and measurement principles. Paragraphs 22–3131A specify both the particular items for which exceptions are provided and the nature of those exceptions. The acquirer shall account for those items by applying the requirements in paragraphs 22–3131A, which will result in some items being:
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31A The acquirer shall measure a group of contracts within the scope of AASB 17 Insurance Contracts acquired in a business combination, and any assets for insurance acquisition cash flows as defined in AASB 17, as a liability or asset in accordance with paragraphs 39 and B93–B95F of AASB 17, at the acquisition date.
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Bargain purchases

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35 A bargain purchase might happen, for example, in a business combination that is a forced sale in which the seller is acting under compulsion. However, the recognition or measurement exceptions for particular items discussed in paragraphs 22–3131A may also result in recognising a gain (or change the amount of a recognised gain) on a bargain purchase.
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64N AASB 17, issued in July 2017, amended paragraphs 17, 20, 21, 35 and B63, and after paragraph 31 added a heading and paragraph 31A. AASB 2020-5 Amendments to Australian Accounting Standards – Insurance Contracts, issued in July 2020, amended paragraph 31A. An entity shall apply the amendments to paragraph 17 to business combinations with an acquisition date after the date of initial application of AASB 17. An entity shall apply the other amendments when it applies AASB 17.

| In Appendix B, paragraph B63 is amended. |

Other Australian Accounting Standards that provide guidance on subsequent measurement and accounting (application of paragraph 54)

B63 Examples of other Australian Accounting Standards that provide guidance on subsequently measuring and accounting for assets acquired and liabilities assumed or incurred in a business combination include:
(b) \[deleted\]AASB 4 Insurance Contracts provides guidance on the subsequent accounting for an insurance contract acquired in a business combination.