APRA Letter on Its Approach to AASB 16 and AASB 17 for Insurers
APRA published a letter informing regulated insurers about its planned response to the issuance of standards on AASB 16 Leases (AASB 16) and AASB 17 Insurance Contracts (AASB 17). These two standards were issued by the Australian Accounting Standards Board (AASB). The letter is intended for all general insurers, life insurers, and private health insurers.
APRA recognizes, in its letter, that AASB 17 is a complex standard and potentially affects insurers in different sectors in different ways. Consequently, APRA intends to seek information from a number of insurers from each sector to better understand the impact of AASB 17 on their operations. As part of that outreach activity, APRA also intends to seek information on the impact of accounting standard AASB 16 on insurers. APRA does not intend to alter its prudential or reporting framework for either AASB 17 or AASB 16 until the impact is better understood and expects insurers to maintain their APRA reporting obligations.
APRA recognizes that some entities may be considering early adoption of the AASB 17 requirements. APRA expects that these entities would analyze the impact of the new standards and contact APRA to discuss their approach to early adoption prior to proceeding. AASB 17 was issued in July 2017 and the new requirements apply to all insurers for reporting periods beginning on or after January 01, 2021. AASB 17 requires all insurance contracts to be accounted for consistently to facilitate comparisons across similar insurance companies. The requirements are designed to help users of financial statements better understand an insurer’s exposure, profitability, and financial position.
Related Links
Keywords: Asia Pacific, Australia, Insurance, IFRS 17, AASB 17, Insurance Contracts, Leases, APRA
Previous Article
IMF Paper on the 2017 Joint Review of Standards and Codes InitiativeRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
