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Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial report of the current year. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have fulfilled the responsibilities described in the Auditor ’ s responsibilities for the audit of the financial report section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial report. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial report.
1. Initial Application of AASB 17
Financial report reference: Note 9.6
Why significant to the audit
How our audit addressed the key audit matter Our audit procedures included the following (and where appropriate, we involved our life insurance actuarial specialists): • Assessed the significant judgements to determine the relevant accounting policies
Effective 1 July 2023, the Group transitioned to the new accounting standard AASB 17 Insurance Contracts which replaced AASB 1038 Life Insurance Contracts. The Group has evaluated the requirements of AASB 17 Insurance Contracts and exercised significant judgement to develop accounting policies and determine appropriate methodologies in order to comply with the requirements of AASB 17 Insurance Contracts . In particular, the determination of the measurement models to apply under the standard, the transition approaches adopted, the determination of coverage units for contractual service margin release, risk adjustment, computation of loss component on onerous contracts and the determination of the discount rates. The standard also has an impact on the disclosures in the notes to the financial statements. Accordingly, we have identified the initial application as a key audit matter.
against the requirements of AASB 17 Insurance Contracts . This included judgements used to determine the measurement models to apply, the transition approaches adopted, coverage units for contractual service margin release, risk adjustment, identification of onerous contracts and discount rates used. Evaluated the application of the measurement model for insurance contracts. This included assessing the derivation and application of underlying significant
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assumptions used to derive the fulfilment cash flows, assessing the resulting fulfilment cash flows and assessing the related contractual service margin. • Evaluated the appropriateness of the methodology used by management to determine the risk adjustment and assessed the application of this methodology to derive the risk adjustment.
A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation
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ClearView Annual Report 2024
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