Australian life insurance standard amended for regulatory requirements

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19 Mar 2013

The Australian Accounting Standards Board (AASB) has released amendments to AASB 1038 'Life Insurance Contracts' to align the terminology used with changes to the Australian Prudential Regulation Authority’s (APRA) reporting requirements relating to life insurers.

Specifically, the amending standard, AASB 2013-2 Amendments to Australian Accounting Standards – Regulatory Capital, reflects necessary changes as a consequence of APRA Prudential Standard LPS 110 Capital Adequacy, issued in January 2013, which requires a life company to maintain adequate capital against the risks associated with its activities.

The amendments align terminology by changing references to ‘solvency’ in AASB 1038 to ‘capital’ and remove a related explanatory paragraph.

AASB 2013-2 applies to annual reporting periods ending on or after 31 March 2013, but may be applied early to annual reporting periods ending on or after 1 January 2013 but before 31 March 2013.

Click for AASB press release (link to AASB website).

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