Part Total business - Financial Sector (Collection of Data) (reporting standard) determination No. 27 of 2009 - GRS 310.0_G (2009) - Income Statement - Total business | Zoe
Financial Sector (Collection of Data) (reporting standard) determination No. 27 of 2009 - GRS 310.0_G (2009) - Income Statement
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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 2009 - GRS 310.0_G (2009) - Income Statement.
For each line item where the data for individual regions is required to be manually entered, then the total business column must also be manually entered. For each line item, this will represent the sum of values reported under:
Australian business;
each region for international business; and
inter-region elimination.
1.0 Gross earned premium
Gross earned premium must be recognised in accordance with the requirements under AASB 1023 ' General Insurance Contracts'.
Where there is reinsurance between regions, regions are to be reported on a separate basis. That is, the region directly assuming the risks must report as direct business. The reinsuring region should report this as direct business as well.
Where reinsurance occurs between entities in one region, the reinsurance transaction is eliminated on consolidation.
1.1 Gross earned premium on direct business
For each region, report the gross earned premium on direct business.
1.2 Gross earned premium on inwards reinsurance business
For each region, report the gross earned premium on inwards reinsurance business.
1.3 Total gross earned premium
This is automatically calculated by the form and represents the total of item 1.1 ‘Gross earned premium on direct business’ and item 1.3 ‘Gross earned premium on inwards reinsurance business’.
2.0 Reinsurance expense
Reinsurance expense must be recognised in accordance with the requirements under AASB 1023 'General Insurance Contracts'.
2.1 Reinsurance expense attributed to direct business
For each region, report the total outward reinsurance expense attributed to direct business.
2.2 Reinsurance expense attributed to inwards reinsurance business
For each region, report the total outward reinsurance expense attributed to inwards reinsurance business.
2.3 Total outward reinsurance expense
This is automatically calculated by the form and represents the total of item 2.1 ‘Reinsurance expense attributed to direct business’ and item 2.2 ‘Reinsurance expense attributed to inwards reinsurance business’.
3.0 Net Premium Revenue
This is automatically calculated by the form and represents the difference between item 1.3 'Total gross earned premium' and item 2.3 'Total outward reinsurance expense'.
4.0 Claims Expense
Report the claims expense for each region on:
4.1 direct business; and
4.2 inwards reinsurance business.
4.3 Gross Claims Expense
The Gross claims expense is automatically calculated by the form and represents the sum of item 4.1 'Claims expense on direct business' and item 4.2 'Claim expense on inwards reinsurance business'.
4.3.1 Prior period reserve releases / strengthening
Disclose in this field that component of gross claims expense which is due to reserve releases /strengthening including changes due to the impacts of movements in discount rates and changes in the probability of sufficiency. This is a memo item of total gross claims expense and is not added into the calculation of 'Net Incurred Claims' or 'Underwriting Result'.
For a six-monthly reporting form, ‘prior period’ is defined as the previous six-month period. For an annual reporting, ‘prior period’ is defined as the previous 12-month period.
Report the reinsurance recoveries revenue for each region:
5.1 on direct business, and
5.2 on inwards reinsurance business.
5.3 Total Reinsurance Recoveries Revenue
This is automatically calculated by the form and represents the sum of item 5.1 'Reinsurance recoveries revenue on direct business' and item 5.2 'Reinsurance recoveries revenue on inwards reinsurance business'.
6.0 Other Recoveries Revenue
This is the revenue from recoveries other than reinsurance recoveries, in respect of claims. Where appropriate it is to be reported after deducting the reinsurer’s share of the ‘other recoveries revenue’.
7.0 Total Recoveries
This is automatically calculated by the form and represents the sum of item 5.3 'Total reinsurance recoveries revenue' and item 6.0 'Other recoveries revenue'.
8.0 Net Incurred Claims
This is automatically calculated by the form and represents the difference between item 4.3 ‘Gross claims expense’ and item 7 ‘Total recoveries’.
8.1 Prior period reserve releases / strengthening
Disclose in this field that component of net incurred claims which is due to reserve releases /strengthening including changes due to the impacts of movements in discount rates and changes in the probability of sufficiency. This is a memo item of net incurred claims and is not added into the calculation of Underwriting Result.
For a six-monthly reporting form, ‘prior period’ is defined as the previous six-month period. For an annual reporting form, ‘prior period’ is defined as the previous 12-month period.
9.0 Underwriting expenses
9.1 Acquisition costs
Report the Acquisition Costs expensed for the period as recognised in accordance with Australian accounting standards.
9.2 Other underwriting expenses
This item will include all other underwriting expenses which are not included in item 9.1 ‘acquisition costs’.
9.3 Liability adequacy test deficiency on unexpired risk
Report any adjustments from the liability adequacy test carried out in accordance with AASB 1023 'General Insurance Contracts'. This information is only to be supplied for geographical segments in cases where it is readily available. Where this information is not available the Level 2 insurance group must be able to provide APRA with details of how application of the liability adequacy test has impacted profitability of geographical segments.
9.4 Commission revenue
Report the value of commission revenue earned for the period. The measurement and recognition of commission revenue must be in accordance with the Australian accounting standards. Commission revenue is to be reported as a negative value.
9.5 Total underwriting expenses
This is automatically calculated by the form and represents the sum of the values reported for items 9.1 to 9.4.
10.0 Underwriting Result
The underwriting result is calculated automatically by the form and is derived from:
item 3.0 'Net Premium Revenue';
Less:
item 8.0 'Net Incurred Claims';
Less:
item 9.5 'Total underwriting expenses'.
11.0 Investment Income
11.1 Dividend revenue
Dividend revenue is to be recognised in accordance with Australian accounting standards.
Item 11.1 ‘Dividend revenue’ is automatically calculated by the form and represents the sum of item 11.1.1 ‘on listed equity’ and item11.1.2 ‘on unlisted equity’
For each region, report the value of dividend income received by the Level 2 insurance group for the period on:
11.1.1 listed equity; and
11.1.2 unlisted equity.
11.2 Interest revenue
Interest revenue is to be recognised in accordance with Australian accounting standards.
Report the value of interest revenue for each region during the period.
11.3 Trust revenue
Report the value of trust revenue for each region during the period.
Item 11.3 ‘Trust revenue’ is automatically calculated by the form and represents the sum of item 11.3.1 ‘Trusts on a ‘look-through’ basis’ and item11.3.2 ‘Trusts without ‘look-through’
Revenue should be reported separately for:
11.3.1 trusts on a 'look-through' basis; and
11.3.2 trusts without 'look-through'.
11.4 Rental income
Rental income represents the revenue arising from the Level 2 insurance group’s assets yielding rent, for example investment property rentals under AASB 140 ‘Investment Property’.
For each region, report the value of rental income earned during the period.
11.5 Other investment income
Report in this item all other investment income not reported above.
11.6 Net changes in fair value of investments
Changes in the fair value of investments are to be recognised in accordance with Australian accounting standards. For the measurement of assets follow AASB 1023 ‘General Insurance Contracts’ and other Australian accounting Standards. Unlike at Level 1, APRA will accept the notion of assets backing insurance liabilities for the Level 2 insurance group, provided these assets represent all assets controlled and managed by the group to support insurance liabilities. Investments backing general insurance liabilities must be measured at fair value.[8]
The form requires Level 2 insurance groups to report the net changes in the fair value of investments separately, based on whether they are:
realised gains and losses; or
unrealised gains and losses;
Record gains as positive amounts and losses as negative amounts.
Item 11.6 ‘Net changes in fair value of investments’ is automatically calculated by the form and represents the sum of item 11.6.1 ‘Realised net gains and losses on:’ and item11.6.2 ‘Unrealised net gains and losses on:’
11.6.1 Realised net gains and losses on:
Item 11.6.1 ‘Realised net gains and losses on:’ is automatically calculated by the form and represents the sum of items 11.6.1.1 to 11.6.1.5.
For each region, report the realised net gains or losses on:
11.6.1.1 interest bearing instruments;
11.6.1.2 listed equity;
11.6.1.3 unlisted equity;
11.6.1.4 investment property;
11.6.1.5 other investments.
11.6.2 Unrealised net gains and losses
Item 11.6.2 ‘Unrealised net gains and losses on:’ is automatically calculated by the form and represents the sum of items 11.6.2.1 to 11.6.2.5.
For each region, report the unrealised net gains or losses on:
11.6.2.1 interest bearing instruments;
11.6.2.2 listed equity;
11.6.2.3 unlisted equity;
11.6.2.4 investment property;
11.6.2.5 other investments.
11.7 Total investment Income
Total investment income is calculated automatically and represents the sum of item 11.1 'Dividend revenue', item 11.2 'Interest revenue', item 11.3 'Trust revenue', item 11.4 ‘Rental income', item 11.5 'Other investment income' and item 11.6 'Net changes in fair value of investments'.
For each region, Level 2 insurance groups are to report the total investment income arising from:
11.7.1 assets backing insurance liabilities; and
11.7.2 shareholder funds.
Investment income is to be determined for these items in the same manner as is adopted by the Australian accounting standards.
12.0 Other income
12.1 Net foreign exchange gains
Report any gains on foreign exchange separately for each region. Foreign exchange gains should be reported in accordance with Australian accounting standards. The amount reported is on a net basis. If a value is reported for a region at this item, then no value can be reported for this region at item 13.3.
12.2 Negative goodwill
Report negative goodwill recognised and measured in accordance with Australian accounting standards.
12.3 Defined benefit actuarial gains
Report the value of any defined benefit actuarial gains recognised and measured in accordance with Australian accounting standards.
12.4 Other income
Report all other income not reported above in this item. Include in this item any increment or decrement (write down) from the revaluation of other assets. Decrements are to be reported as a negative number.
12.5 Profit from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations
Report any gain on the measurement of a non-current asset (or disposal group) classified as held for sale that does not meet the definition of a discontinued operation.
This item must be completed in accordance with the requirements of Australian accounting standards.
12.6 Total other income
Total other income is calculated automatically and represents the sum of items 12.1-12.5.
13.0 Other expenses
13.1 Investment expenses on assets backing insurance liabilities
For each region, report the value of investment expenses incurred for the period by the Level 2 insurance group on assets backing insurance liabilities.
13.2 Investment expenses on shareholders' funds
For each region, report the value of investment expenses incurred for the period by the Level 2 insurance group on shareholders' funds.
13.3 Net foreign exchange losses
Report any losses on foreign exchange separately for each region. Foreign exchange losses should be reported in accordance with Australian accounting standards. The amount reported is on a net basis. If a value is reported for a region at this item, then no value can be reported for this region at item 12.1.
13.4 Finance costs
For each region, report the value of expenses incurred for the period in relation to financing.
13.5 Defined benefit actuarial losses
Report the value of any defined benefit actuarial losses recognised and measured in accordance with Australian accounting standards.
13.6 Other operating expenses
Report in this item other operating expenses not reported above.
13.7 Loss from non-current assets and disposal groups classified as held for sale not qualifying as discontinued operations
Report any loss on the measurement of a non-current asset (or disposal group) classified as held for sale that does not meet the definition of a discontinued operation.
This item must be completed in accordance with the requirements of Australian accounting standards.
13.8 Other
Report in this item expenses not reported above. This will include any:
impairment of goodwill recognised in the income statement in accordance with the requirements of Australian accounting standards; and
net asset revaluation adjustments (including non-consolidated subsidiaries) that is recognised in the income statement. These amounts may not equal the amounts reported in accordance with Australian accounting standards due to the prudential requirements relating to the valuation of non-consolidated subsidiaries and the mandatory revaluation of owner occupied property using the revaluation model under AASB 116 ‘Property Plant and Equipment’
13.9 Total other expenses
This is automatically calculated and represents the sum of items 13.1-13.8.
14.0 Profit (loss) before income tax expense (benefit) from continuing operations
The profit (loss) from continuing operations is calculated automatically and is derived from:
item 10.0 'Underwriting result';
Plus:
the sum of:
item 11.7 'Total investment income'; and
item 12.6 'Total other income';
Less:
item 13.9 'Total other expenses'.
15.0 Income tax expense (benefit) from continuing operations
This represents the income tax expense or benefit attributable to the profit or loss from continuing operations.
This item must be completed in accordance with the requirements of Australian accounting standards.
16.0 Profit (loss) after income tax and before minority interests from continuing operations
This item is calculated automatically and is derived from:
item 14.0 'Profit (loss) before income tax expense (benefit) from continuing operations';
Less:
item 15.0 'Income tax expense (benefit) from continuing operations'.
17.0 Profit (loss) after income tax from discontinued operations
Profit (loss) after income tax from discontinued operations is to be classified and reported in accordance with the Australian accounting standards.
18.0 Total profit (loss) after income tax and discontinued operations and before minority interests
This is calculated automatically and is derived from:
item 16.0 'Profit (loss) after income tax and before minority interests from continuing operations';
Plus:
item 17.0 'Profit (loss) after income tax from discontinued operations'.
19.0 Net profit (loss) after income tax attributable to minority interests
This item is to be reported in accordance with the requirements of the Australian accounting standards.
20.0 Net profit (loss) after income tax attributable to members of the company
This is calculated automatically and is derived from:
item 18.0 'Total profit (loss) after income tax and discontinued operations and before minority interests';
Less:
item 19.0 'Net profit (loss) after income tax attributable to minority interests'.
21.0 Retained earnings at beginning of the financial year
Report here the relevant retained earnings amount at the beginning of the current financial year. For the first year of reporting the APRA forms, use the retained earnings figure as per the Level 2 insurance group’s financial statements prepared in accordance with Australian accounting standards.
22.0 Adjustments to retained earnings due to changes in accounting policies
Include the value of aggregate adjustments to retained earnings due to changes in accounting policies in accordance with Australian accounting standards.
23.0 Reduction in retained earnings on share buy back
Disclose that portion of the consideration used for share buy backs during the reporting period that is allocated to retained earnings. This should be entered as a positive value.
24.0 Amounts transferred from reserves
Disclose the amount of funds transferred from other reserves to Retained Earnings during the reporting period.
25.0 Total available for appropriation
This amount is calculated automatically and is derived from:
item 20.0 'Net profit (loss) after income tax attributable to members of the company';
Plus:
item 21.0 'Retained earnings at the beginning of the financial year';
Plus:
item 22.0 'Adjustments to retained earnings due to changes in accounting policies';
Less:
item 23.0 'Reduction in retained earnings on share buy back';
Plus:
item 24.0 'Amounts transferred from reserves'.
26.0 Dividends declared or paid
Report dividends that have been declared or paid by the Level 2 insurance group during the reporting period. Dividends are to be recognised in accordance with the Australian accounting standards.
27.0 Aggregate of amounts transferred to reserves
Disclose the amount of funds transferred to other reserves from Retained Earnings during the reporting period. This should be entered as a positive number
28.0 Retained earnings at the end of the reporting period
This is calculated automatically and is derived from:
item 25.0 'Total available for appropriation';
Less:
the sum of:
item 26.0 'Dividends declared or paid'; and
item 27.0 'Aggregate of amounts transferred to reserves'.