CTHRepealedLegislation
Accounting Standard AASB 2020-8 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform – Phase 2
Amendments to AASB 4 Insurance ContractsAmendments to AASB 4 Insurance Contracts
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Amendments to AASB 4 Insurance Contracts
| Paragraphs 20R–20S and 50–51 are added. A subheading is added before paragraph 20R. For ease of reading these paragraphs have not been underlined. |
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Recognition and measurement
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Changes in the basis for determining the contractual cash flows as a result of interest rate benchmark reform
20R An insurer applying the temporary exemption from AASB 9 shall apply the requirements in paragraphs 5.4.6‒5.4.9 of AASB 9 to a financial asset or financial liability if, and only if, the basis for determining the contractual cash flows of that financial asset or financial liability changes as a result of interest rate benchmark reform. For this purpose, the term ‘interest rate benchmark reform’ refers to the market-wide reform of an interest rate benchmark as described in paragraph 102B of AASB 139.
20S For the purpose of applying paragraphs 5.4.6–5.4.9 of the amendments to AASB 9, the references to paragraph B5.4.5 of AASB 9 shall be read as referring to paragraph AG7 of AASB 139\. References to paragraphs 5.4.3 and B5.4.6 of AASB 9 shall be read as referring to paragraph AG8 of AASB 139.
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Effective date and transition
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50 AASB 2020-8 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform – Phase 2, which amended AASB 4, AASB 7, AASB 9, AASB 16 and AASB 139, issued in September 2020, added paragraphs 20R–20S and paragraph 51. An entity shall apply these amendments for annual periods beginning on or after 1 January 2021. Earlier application is permitted. If an entity applies these amendments for an earlier period, it shall disclose that fact. An entity shall apply these amendments retrospectively in accordance with AASB 108, except as specified in paragraph 51.
51 An entity is not required to restate prior periods to reflect the application of these amendments. The entity may restate prior periods if, and only if, it is possible without the use of hindsight. If an entity does not restate prior periods, the entity shall recognise any difference between the previous carrying amount and the carrying amount at the beginning of the annual reporting period that includes the date of initial application of these amendments in the opening retained earnings (or other component of equity, as appropriate) of the annual reporting period that includes the date of initial application of these amendments.