Section Australia — Superannuation Business - Financial Sector (Collection of Data) (reporting standard) determination No. 123 of 2023 - Australia — Superannuation Business | Zoe
Financial Sector (Collection of Data) (reporting standard) determination No. 123 of 2023
Australia — Superannuation Business Australia — Superannuation Business
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Statement of profit or loss and other comprehensive income by Product Group
General instructions
These instructions assist completion of the information collected by Reporting Standard LRS 311.0 Statement of profit or loss and other comprehensive income by Product Group. This Reporting Standard collects income statement data by APRA product groups.
Reporting tables
Tables described in this Reporting Standard list each of the data fields required to be reported. The data fields are listed sequentially in the column order that they will appear in the reported data set. Constraints on the data that can be reported for each field have also been provided.
General accounting basis
In completing the reporting standards, unless otherwise stated specifically, reporting life companies are to follow the basis consistent with the relevant Australian Accounting Standards. In particular, appropriate consideration must be given to the interpretation, the basis for measurement, and the netting between revenues/expenses items and financial assets/liabilities.
References to Australian Accounting Standards
Each item reported under this Reporting Standard aligns with the Accounting Standards made by the Australian Accounting Standards Board (AASB). The applicable AASB references are specified with each item. AASB reference provides a written description of the accounting meaning of an IFRS Taxonomy element.
IFRS taxonomy element reference
Each IFRS taxonomy element contains at least one cross-reference to an AASB Standard (that incorporates IFRS 17 Standards as issued and amended by the International Accounting Standards Board (IASB)) and has a reference type that can be used to identify the source of that element. The IFRS Taxonomy uses the following element reference types:
(a) disclosure—an element of this type depicts a presentation or disclosure requirement of an IFRS/AASB Standard;
(b) example—an element of this type represents an example provided in an IFRS/AASB Standard or its accompanying materials; and
(c) common practice—an element of this type reflects common reporting practice within IFRS/AASB financial statements they not specifically mentioned in IFRS/AASB Standards or their accompanying materials, but are consistent with IFRS/AASB Standards. They have been found to be frequently disclosed across a range of companies and accounting jurisdictions.
Definitions
Terms that are highlighted in bold italics are defined in these instructions.
Specific instructions
Reporting basis
Information in this Reporting Standard is to be completed by life insurers for each reporting period on a statutory fund basis. Friendly societies do not have to complete information in this Reporting Standard.
APRA class of business
The APRA class of business that apply for the purpose of this Reporting Standard are:
Australia – Ordinary Business
Australia – Superannuation Business
Overseas – All Business
The expressions ‘Australian Business’ and ‘Overseas Business’ refer to the territories where the life insurance business is carried on.
The expressions ‘Ordinary Business’ and ‘Superannuation Business’ are defined in the Life Act.
This section is also to be completed for each participating and non-participating business. The expressions ‘participating business and ‘non-participating business’ are defined in the Life Act.
Direct business is any insurance business written / insurance contracts issued by the reporting insurer.
Inwards reinsurance is any reinsurance business written / reinsurance contracts issued by the reporting insurer.
Non-life insurance business is insurance business carried on by a life company in accordance with APRA’s declaration made under section 12A or section 12B of the Life Act.
APRA product groups
The APRA product groups that apply to reporting are defined in LPS 001:
L1 - Conventional
L2 - Annuity with longevity risk;
L3\_1 - Individual lump sum risk - stepped premium;
L6 - Individual disability income insurance - stepped premium;
L7\_1 - Individual lump sum risk - other;
L10 - Individual disability income insurance - other;
L11\_1 - Group lump sum risk;
L14 - Group disability income insurance;
L15 - Investment linked;
L16 - Investment with discretionary additions;
L17 - Other investment policy;
L18 - Annuity without longevity risk; and
L19 - Other.
Reporting direction for life insurers
For APRA reporting, life insurers must also meet the relevant policy liability valuation requirements outlined in Prudential Standard LPS 340 Valuation of Policy Liabilities (LPS 340).
Subject to meeting the requirements in LPS 340, where it is not possible to readily assign AASB 17 numbers to specific APRA product groups, life insurers must apply the allocation principles to allocate AASB 17 numbers to APRA product groups.
Allocation principles are defined in LRS 001.
Investment and insurance finance income and expense items
Life insurers must report investment, and insurance finance income and expense items for the products that have a substantial investment component (i.e. L1, L2, L15, L16, L17 and L18). Life insurers must report unallocated investment and insurance finance income and expense amounts in the unallocated column.
The aggregate of unallocated and allocated investment and insurance finance income and expense amounts must reconcile with the amounts reported under the Reporting Standard LRS 310.0 Statement of Profit or Loss and Other Comprehensive Income.
Units of measurement
Report values in this Reporting Standard in whole Australian dollars (AUD) with no decimal place.
Convert amounts denominated in foreign currency to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.
Report losses and expenses as negative values.
Columns for the Statutory Fund
Columns 1 to 13
Report the amount by APRA product group for Australia - Ordinary Business.
Columns 14 to 26
Report the amount by APRA product group for Australia - Superannuation Business
Columns 27 to 39
Report the amount by APRA product group for Overseas - All business
Column 40
Report the amount for unallocated items.
Columns 1 to 40 (Total)
The total amount is a derived column and is calculated as the sum of columns 1 to 40 inclusive.
Insurance revenue
Item 1
Item 1 insurance revenue is a derived item calculated as the sum of items 1.1 to 1.4 inclusive.Report this item in accordance with AASB 101.82 (a) (ii) Disclosure, AASB 17.80 (a) and AASB 17.83.
Item 1.1
Report insurance revenue from life insurance direct business.
Item 1.2
Report insurance revenue from life investment direct business.
Item 1.3
Report insurance revenue from inwards reinsurance.
Item 1.4
Report insurance revenue from non-life insurance business.
Insurance service expense
Item 2
Item 2 insurance service expense, is a derived item calculated as the sum of items 2.1, 2.2, 2.3 and 2.4. inclusive.Report this item in accordance with AASB 101.82 (ab) Disclosure, AASB 17.80 (a) and AASB 17.84.
Item 2.1
Item 2.1 represents insurance service expense from life insurance direct business.Item 2.1 is a derived item and is calculated as the sum of items 2.1.1 to 2.1.6 inclusive.
Item 2.1.1
Report incurred claims from life insurance direct business.
Item 2.1.2
Report other insurance service expenses from life insurance direct business.Report insurance acquisition cash flows that have been recognised as expenses when incurred under AASB 17.59(a) at this item.
Item 2.1.3
Report amortisation of insurance acquisition cash flows from life insurance direct business.
Item 2.1.4
Report losses and reversal of losses on onerous contracts from life insurance direct business.Report this item in accordance with AASB 17.47-52.
Item 2.1.5
Report changes that relate to past service: changes to liabilities for incurred claims from life insurance direct business.Report this item in accordance with AASB 17.103 (b) (iii) Disclosure.
Item 2.1.6
Report impairment losses/reversals on assets for insurance acquisition cash flows from life insurance direct business.Report this item in accordance with AASB 17 Appendix A, AASB 17.28B, AASB 17.28E and AASB 17.28F. APRA has interpreted this item to form part of insurance service expense.
Item 2.2
Report life investment direct business
Item 2.2.1
Report other insurance service expenses from life investment direct business.Report this item in accordance with AASB 17.103 (b).
Item 2.3
Item 2.3 represents insurance service expense from inwards reinsurance. Item 2.3 is a derived item and is calculated as the sum of items 2.3.1 to 2.3.6 inclusive.
Item 2.3.1
Report incurred claims from inwards reinsurance.
Item 2.3.2
Report other insurance service expenses from inwards reinsurance.Report insurance acquisition cash flows that have been recognised as expenses when incurred under AASB 17.59 (a) at this item.
Item 2.3.3
Report amortisation of insurance acquisition cash flows from inwards reinsurance.
Item 2.3.4
Report losses and reversal of losses on onerous contracts from inwards reinsurance.Report this item in accordance with AASB 17.47-52.
Item 2.3.5
Report changes that relate to past service: changes to liabilities for incurred claims from inwards reinsurance.Report this item in accordance with AASB 17.103 (b) (iii) Disclosure.
Item 2.3.6
Report impairment losses/reversals on assets for insurance acquisition cash flows from inwards reinsurance.Report this item in accordance with AASB 17 Appendix A, AASB 17.28B, AASB 17.28E and AASB 17.28F. APRA has interpreted this item to form part of insurance service expense.
Item 2.4
Item 2.4 represents insurance service expense from non-life insurance business. Item 2.4 is a derived item and is calculated as the sum of items 2.4.1 to 2.4.6 inclusive.
Item 2.4.1
Report incurred claims from non-life insurance business.
Item 2.4.2
Report other insurance service expenses from non-life insurance business.Report insurance acquisition cash flows that have been recognised as expenses when incurred under AASB 17.59(a) at this item.
Item 2.4.3
Report amortisation of insurance acquisition cash flows from non-life insurance business.
Item 2.4.4
Report losses and reversal of losses on onerous contracts from non-life insurance business.Report this item in accordance with AASB 17.47-52.
Item 2.4.5
Report changes that relate to past service: changes to liabilities for incurred claims from non-life insurance business.Report this item in accordance with AASB 17.103 (b) (iii).
Item 2.4.6
Report impairment losses/reversals on assets for insurance acquisition cash flows from non-life insurance business.Report this item in accordance with AASB 17 Appendix A, AASB 17.28B, 17.28E and AASB 17.28F. APRA has interpreted this item to form part of insurance service expense.
Insurance service result before reinsurance contracts held
Item 3
Item 3 insurance service result before reinsurance contracts held is a derived item and is calculated as the sum of item 1 and item 2.Report this item in accordance with AASB 17 Appendix A.
Allocation of reinsurance premiums
Item 4
Report allocation of reinsurance premiums.It is requested that the entity present this item separately from amounts recoverable from reinsurers reported at item 5.Report this item in accordance with AASB 17.86.
Amounts recoverable from reinsurers
Item 5
Report amounts recoverable from reinsurers. Include at this item reversals of recoveries of losses from the reinsurance contracts determined in accordance with AASB 17.66B for reinsurance contracts held.Report this item in accordance with AASB 17.86.The amount reported at this item should reconcile to item 8. ‘Amounts recoverable from reinsurers’ reported in Reporting Standard LRS 320.0 Liability Roll Forwards Part B: Reinsurance contracts held (outwards reinsurance by cedant/retrocedent) Liability Roll Forward 1 – Reconciliation of the remaining coverage and incurred claims (LRS 320.0 Part B RF1).
Net expense from reinsurance contracts held
Item 6
Item 6 is a derived item and is calculated as the sum of item 4 and item 5. This item can be a net income or net expense.Report this item in accordance with AASB 17 Appendix A, AASB 101.82 (ac), AASB 17.82 and AASB 17.86.
Insurance service result
Item 7
Item 7 insurance service result is a derived item and is calculated as the sum of item 3 and item 6.Report this item in accordance with AASB 17.80 (a).
Interest revenue calculated using the effective interest method
Item 8
Report interest revenue calculated using the effective interest method.Report this item in accordance with AASB 101.82 (a) (i) and AASB 9 Appendix A.
Other interest and similar income
Item 9
Report other interest and similar income include income that is not reported at item 8 and items 10 to 16.
Net gains/losses on financial assets at fair value through profit or loss
Item 10
Report net gains/losses on financial assets at fair value through profit or loss.Report this item in accordance with AASB 132.11 and AASB 7.20 (a) (i).
Net gains/losses on derecognition of financial assets measured at fair value through other comprehensive income
Item 11
Report net gains or losses on derecognition of financial assets measured at fair value through other comprehensive income.Report this item in accordance with AASB 132.11 and AASB 7.20 (a) (viii).
Net change in investment contract liabilities
Item 12
Report the net change in investment contract liabilities.Report this item in accordance with AASB 7.20 (a) (i).
Net gains/losses on derecognition of financial assets measured at amortised cost
Item 13
Report net gains/losses on derecognition of financial assets measured at amortised cost.Report this item in accordance with AASB 132.11 and AASB 101.82 (aa).
Impairment loss on financial assets
Item 14
Report impairment loss on financial assets.Report this item in accordance with AASB 9 Appendix A, AASB 132.11 and AASB 101.82 (ba).
Net gains from fair value adjustments to investment properties
Item 15
Report net gains from fair value adjustments to investment properties.Report this item in accordance with AASB 140.5 and AASB 140.76 (d).
Net foreign exchange income / expense.
Item 16
Report the net foreign exchange income / expense.Report this item in accordance with AASB 121.52 (a) Common practice.
Total investment result
Item 17
Item 17 total investment result is a derived item and is calculated as the sum of items 8 to 16 inclusive.
Insurance finance expenses for insurance contracts issued
Item 18
Report insurance finance expenses for insurance contracts issued. This item can be a net income or net expense.Report this item in accordance with AASB 17.87 and AASB 17 Appendix A.
Reinsurance finance income for reinsurance contracts held
Item 19
Report reinsurance finance income for reinsurance contracts held. This item can be a net income or net expense.Report this item in accordance with AASB 17.82 and AASB 17 Appendix A.Insurers shall disclose the “Effect of changes in non-performance risk of reinsurers" as reported in LRS 320.0 Part B RF1 item 14 at this line item.
Net insurance financial result through profit or loss
Item 20
Item 20 net insurance financial result through profit or loss is a derived item and is calculated as the sum of item 18 and item 19. This item can be a net income or net expense.
Asset management services revenue
Item 21
Report asset management services revenue. This includes revenue from investment management services accounted for in accordance with AASB 15.Report this item in accordance with AASB 15.113 (a) Disclosure and AASB 15.114 Disclosure .
Investment management expenses
Item 22
Report investment management expenses.
Total of asset management services revenue and investment management expenses
Item 23
Item 23 total asset management services revenue and investment management expenses is a derived item and is calculated as the sum of item 21 and item 22.
Items that may be reclassified to profit or loss in subsequent periods
Report this item in accordance with AASB 101.82A (a) (ii).
Change in fair value of financial assets at fair value through other comprehensive income
Item 24
Report change in fair value of financial assets at fair value through other comprehensive income.Report this item in accordance with AASB 13 Appendix A, AASB 132.11 and AASB 7.20 (a) (viii).
Amount reclassified to profit or loss
Item 25
Report amount reclassified to profit or loss.Report this item in accordance with AASB 7.20 (a) (viii).
Insurance finance expenses for insurance contracts issued
Item 26
Report insurance finance expenses for insurance contracts issued. This item can be a net income or net expense.Report this item in accordance with AASB 17.90 and AASB 17 Appendix A.
Reinsurance finance income for reinsurance contracts held
Item 27
Report reinsurance finance income for reinsurance contracts held. This item can be a net income or net expense.Report this item in accordance with AASB 17.82, AASB 17.90 and AASB 17 Appendix A.
Net insurance financial result through other comprehensive income
Item 28
Item 28 net insurance financial result through other comprehensive income is a derived item and is calculated as the sum of item 26 and item 27.