Financial Sector (Collection of Data) (reporting standard) determination No. 27 of 2007 - LRS 400.0 - Statement of Policy Liabilities
Columns 1 to 7 are for life insurance coColumns 1 to 7 are for life insurance contracts. Columns 8 and 9 are for life investment contracts.
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Turn the raw legal text into a practical explanation grounded in Financial Sector (Collection of Data) (reporting standard) determination No. 27 of 2007 - LRS 400.0 - Statement of Policy Liabilities.
Columns 1 to 7 are for life insurance contracts. Columns 8 and 9 are for life investment contracts.
Columns 1 to 5 Gross Best Estimate Liability –
Column 1 Gross Value of Future Policy Benefits
Where business is valued using techniques other than projection techniques, Gross Value of Future policy Benefits includes the total liability, before deducting the value of unrecouped acquisition expenses.
For participating benefits, the best estimate liability includes past declared bonuses only. Current year bonuses are excluded (see LPS 1.04, section 5, Overview).
For non-participating benefits with an entitlement to Discretionary additions, the cost of the current year Discretionary Additions should be included as part of the best estimate liability.
Column 2 Gross Value of Future Expenses
Column 3 Gross Value of (Balance of) Future Premiums
Column 4 Gross Reduction in Respect of Unrecouped Acquisition Expenses
Only for business valued using techniques other than a projection technique.
Column 5 Total Gross Best Estimate Liability [derived item]
This column will be calculated automatically by derivations contained within the form and represents the sum of columns 1 to 4.
Column 6 Gross Value of Future Profits: Policy Owner Bonuses
For participating benefits, the value of future profits includes future bonuses only. Current year bonuses are excluded.
Column 7 Gross Value of Future Profits: Shareholder Profit Margins
Refer to section 6 of LPS 1.04 for definition and calculation of profit margins.
Column 8 Gross Investment Contract Liability
The net contractual obligation under a life investment contract which arises under the financial instrument element is referred to as the Life Investment Contract liability, this is consistent with the terminology adopted under AASB 1038.
The Investment Contract Liability is a component of the policy liability under the financial instrument element. It is to be determined according to the fair value through profit and loss provisions of the relevant accounting standards. (Refer to LPS 1.04, sections 2.1 and 2.2).
Column 9 Gross Management Services Asset or Liability
This is the liability in respect of the Management Services Element, determined as the difference between the Policy Liability and the Life Investment Contract liability (Column 8).
Include liabilities for deferred acquisition cost and deferred fee revenues.
Column 10 Gross Policy Liability [derived item]
This column will be calculated automatically by derivations contained within the form and represents the total amount of gross policy liability.