Insurance contracts

There are two components to insurance contracts disclosures:

Insurance contracts profit or loss disclosures (primary statements)
Insurance contracts disclosures (notes disclosures)

Non-insurance reporting entities may only use the notes disclosures. However, insurance and reinsurance reporting entities should use both the primary statements disclosures and notes disclosures.

Creating new reports

Please follow the below steps to create a new insurance contracts primary statements report:

Create a new report
Click Sections > Profit or loss > Settings
Set Insurance contracts profit or loss to On
Click Sections > Financial position > Settings
Set Statement format - position to Yes - Liquidity (optional) - also consider setting Exclude liquidity in notes to On via Reports > Options > Setup (Links)
In Accounting policies note, under New or amended Accounting Standards and Interpretations adopted, turn on the paragraph for AASB 17 / IFRS 17 Insurance Contracts

Please follow the below steps to create a new insurance contracts notes disclosures report:

Create a new report
Click Sections > Notes > Settings
Set Insurance contracts disclosures to On
In Accounting policies note, under New or amended Accounting Standards and Interpretations adopted, turn on the paragraph for AASB 17 / IFRS 17 Insurance Contracts

Converting existing reports

Please follow the below steps to convert to insurance contracts primary statements:

Roll forward the prior year report
Click Sections > Profit or loss > Settings
Set Insurance contracts profit or loss to On
Click Sections > Financial position > Settings
Set Statement format - position to Yes - Liquidity (optional) - also consider setting Exclude liquidity in notes to On via Reports > Options > Setup (Links)
In Accounting policies note, under New or amended Accounting Standards and Interpretations adopted, turn on the paragraph for AASB 17 / IFRS 17 Insurance Contracts
Update for the new disclosures, as required (see below)

For primary statements:

An insurance service result, comprising insurance revenue and insurance service expenses
Investment income
Insurance finance income or expenses
Other income or expenses
Other comprehensive income - Net finance expenses from insurance contracts
Other comprehensive income - Net finance income from reinsurance contracts
Insurance contracts issued that are assets
Insurance contracts issued that are liabilities
Reinsurance contracts issued that are assets
Reinsurance contracts issued that are liabilities

Please follow the below steps to convert to insurance contracts notes disclosures:

Roll forward the prior year report
Click Sections > Notes > Settings
Set Insurance contracts disclosures to On
In Accounting policies note, under New or amended Accounting Standards and Interpretations adopted, turn on the paragraph for AASB 17 / IFRS 17 Insurance Contracts
Update for the new disclosures, as required (see below)

For notes disclosures:

Material accounting policies information: Revenue recognition, Insurance finance revenue and expenses, Insurance and reinsurance contracts
Critical accounting judgements, estimates and assumptions: Fulfilment cash flows, Risk adjustment for non-financial risk, Insurance discount rates, Investment component, Contractual service margin, Insurance finance revenue and expenses
Insurance revenue
Investment income and insurance financial result
Issued capital: Minimum regulatory capital requirements
Reserves: Insurance finance reserve
Insurance and reinsurance contracts (column headers can be edited, for example for the PAA measurement approach in ‘Reconciliation of remaining coverage and incurred claims' tables, column headers could be renamed to ‘Remaining coverage’, ‘Incurred claims - present value of future cash flows’ and 'Incurred claims - risk adjustment for non-financial risk’)
Financial instruments: Insurance risk, Price risk, Credit risk, Liquidity risk

For the first year of adoption, based on the full retrospective approach, the restatement disclosures may include:

Statement of financial position: third column for opening comparative financial position
Statement of changes in equity: restated comparative opening balance
Restatement of comparatives note
Retained profits: restated comparative opening balance

There are two booklets available:

AASB 17 Insurance Contracts (download the booklet)
IFRS 17 Insurance Contracts (download the booklet)

Insurance contracts examples are available under the User initials menu (at the top right of the screen) > Examples