Insurance (prudential standards) determination No. 2 of 2004 Variation of Prudential Standard GPS 110 Capital Adequacy for General Insurers and Prudential Standard GPS 210 Liability Valuation for General Insurers (Cth)
Insurance (prudential standards) determination No. 2 of 2004
References to accounting standards
Insurance Act 1973
I, John Francis Laker, Chair of APRA, under paragraph 32(1)(a) of the Insurance Act 1973 (the “Act”) and subsection 33(3) of the Acts Interpretation Act 1901, VARY the prudential standards and guidance notes referred to in the Schedule as provided for in the Schedule.
This variation comes into force on 1 January 2005.
Dated 15 December 2004
[Signed]
……………………............
John Francis Laker
Chair
Note A general insurer that does not comply with a standard may be issued with directions by APRA under section 36 of the Act. Non-compliance with a direction is an offence (see section 37 of the Act).
Interpretation
In this Notice
APRA means the Australian Prudential Regulation Authority.
general insurer has the meaning given in section 11 of the Act.
Schedule
[1] Prudential Standard GPS 110 – Capital Adequacy for General Insurers, paragraph 19, after ‘Australian Accounting Standards’
insert
‘(as they applied in relation to reporting periods that began immediately before 1 January 2005)’
Guidance Note GGN 110.4 – Investment Risk Capital Charge, footnote 1, after ‘Australian Accounting Standard 1017 Related Party Disclosures’
insert
‘(as it applied in relation to reporting periods that began immediately before 1 January 2005)’
Prudential Standard GPS 210 – Liability Valuation for General Insurers, third paragraph under the heading ‘Objective and Key Requirements of this Standard’
omit
‘In developing this Standard, regard has been had to the requirements of AASB 1023 and to the merits, to both the preparer and user of the accounts, of establishing an integrated financial reporting framework for the insurance industry, ie a reporting framework that responds to the objects of the statutory and general purpose reporting regimes and avoids, to the extent possible, dual reporting by industry.’
substitute
‘In developing this Standard, regard has been had to the requirements of AASB 1023 (as it applied in relation to reporting periods that began immediately before 1 January 2005). Regard has also be had to the merits, to both the preparer and user of the accounts, of establishing an integrated financial reporting framework for the insurance industry, ie a reporting framework that responds to the objects of the statutory and general purpose reporting regimes and avoids, to the extent possible, dual reporting by industry.’
omit
‘there will be some inconsistency between this Prudential Standard and AASB 1023.’
substitute
‘there will be some inconsistency between this Prudential Standard and AASB 1023 (as it applied in relation to reporting periods that began immediately before 1 January 2005).’
Prudential Standard GPS 210 – Liability Valuation for General Insurers, paragraph 8, after ‘relevant Australian Accounting Standards’
insert
‘(as they applied in relation to reporting periods that began immediately before 1 January 2005)’
Prudential Standard GPS 210 – Liability Valuation for General Insurers, paragraph 43, after ‘relevant Australian Accounting Standards’
insert
‘(as they applied in relation to reporting periods that began immediately before 1 January 2005)’
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