CONTENTS

COMPILATION DETAILS

Comparison With IFRS 4

Accounting Standard

AASB 4 Insurance Contracts

Paragraphs

Objective 1

Application Aus1.1 – Aus1.5

Scope 2 – Aus6.1

Embedded derivatives 7 – 9

Unbundling of deposit components 10 – 12

Recognition and Measurement

Temporary exemption from some other Australian Accounting Standards 13 – 14

Liability adequacy test 15 – 19

Impairment of reinsurance assets 20

Changes in accounting policies 21 – 23

Current market interest rates 24

Continuation of existing practices 25

Prudence 26

Future investment margins 27 – 29

Shadow accounting 30

Insurance contracts acquired in a business combination or portfolio transfer 31 – 33

Discretionary participation features

Discretionary participation features in insurance contracts 34

Discretionary participation features in financial instruments 35

Disclosure

Explanation of recognised amounts 36 – 37

Nature and extent of risks arising from insurance contracts 38 – 39A

Effective Date and Transition 40 – 41H

Disclosure 42 – 44

Redesignation of financial assets 45

Appendices:

A. Defined terms Page 17

B. Definition of an insurance contract Page 19

DELETED IFRS 4 TEXT Page 24

IMPLEMENTATION GUIDANCE ON IFRS 4

(available on the AASB website)

BASIS FOR CONCLUSIONS on IFRS 4

(available on the AASB website)

Australian Accounting Standard AASB 4 Insurance Contracts (as amended) is set out in paragraphs 1 – 45 and Appendices A – B. All the paragraphs have equal authority. Paragraphs in bold type state the main principles. Terms defined in this Standard are in italics the first time they appear in the Standard. AASB 4 is to be read in the context of other Australian Accounting Standards, including AASB 1048 Interpretation of Standards, which identifies the Australian Accounting Interpretations. In the absence of explicit guidance, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies.