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Why significant to the audit
How our audit addressed the key audit matter
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Expenses (those directly attributable to policy maintenance)
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Assessed the model, methodology and assumptions used to test the Asset for Insurance Acquisition Cashflows for impairment.
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Gross insurance premium rate Reinsurance premium rate
• Assessed the risk adjustment methodology and inputs. • Assessed the movements in the CSM and Fulfilment Cashflows. • Assessed the impact of changes in economic assumption on Insurance and Reinsurance Contract Assets and Liabilities. Where appropriate, we involved our life insurance actuarial specialists in the above procedures and overall assessment of the valuation methodology, key assumptions and models deriving the valuation of the Insurance and Reinsurance Contract Assets and Liabilities. We assessed the adequacy of the disclosures included in the Notes to the financial statements. How our audit addressed the key audit matter Our audit procedures included the following: • Obtained an understanding of the relevant processes and controls relating to capitalised costs. • Assessed amounts capitalised for significant projects against the capitalisation requirements of AASB 138 Intangible Assets . • Assessed the Group’s assessment of indicators of impairment in accordance with the requirements of AASB 136 Impairment of Assets . • Assessed the appropriateness of the useful lives applied to the IT assets.
These assumptions, along with policy information, are used as inputs to the Group’s model to calculate the Insurance and Reinsurance Contract Assets and Liabilities. This is a key audit matter due to the value of the balance relative to total assets and liabilities and the degree of judgement and estimation uncertainty associated with the valuation.
3. Intangible Capitalisation and Recoverability
Financial report reference : Note 4.1
Why significant to the audit
As at 30 June 2024 the Group’s Intangible Asset balance totalled $31.7 million. The recognition and measurement of Intangible Assets is a key audit matter because of the Group’s ongoing investment in a new policy administration system and the judgment required to: • Recognise when costs incurred are eligible for capitalisation in accordance with the requirements of AASB 138 Intangible Assets; and • Assess the useful life of Information Technology assets.
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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