S.L. 123.216 Art. 2Interpretation. Cap. 123. Cap. 386.  Cap. 403. 2 [S.L.  Cap. 403. 3

In these rules, unless the context otherwise requires:-

"Act" means the Income Tax Act;

"adjusted profit before tax" means the profit before tax or loss before tax arising in the relevant accounting period and, except for the items taken into consideration to determine the net insurance service result, adjusted in accordance with the provisions of the Act and subsidiary legislation made thereunder;

"adoption year of assessment" means the year of assessment immediately following the first accounting period for which an insurer has adopted IFRS17 but shall not in any case be later than the year of assessment 2033;

"annual accounts" shall have the same meaning assigned to it in article 2 of the Companies Act;

"business of insurance" shall have the same meaning assigned to it in article 2 of the Insurance Business Act;

"Commissioner" means the Commissioner for Tax and THE ADOPTION OF THE INTERNATIONAL FINANCIAL REPORTING STANDARD 17 INSURANCE 123.216 CONTRACTS

Customs;

"IFRS 17" or "International Financial Reporting Standard 17" shall have the meaning assigned to them in guidelines published on the website of the Commissioner for Tax and Customs in accordance with the provisions of article 96(2) of the Act;

"insurance finance income or expenses" shall have the meaning as assigned to it in guidelines published on the website of the Commissioner for Tax and Customs in accordance with the provisions of article 96(2) of the Act;

"insurance service result" shall have the meaning assigned to it in guidelines published on the website of the Commissioner for Tax and Customs in accordance with the provisions of article 96(2) of the Act;

"insurer" shall have the meaning assigned to it in article

2 of the Insurance Business Act;

"loss before tax" refers to the total loss before tax of an insurer for the relevant accounting period as reported in the audited statement of profit or loss within the annual accounts of the insurer, irrespective of whether such loss is incurred exclusively from the business of insurance or otherwise;

"net insurance service result" means the aggregate of the insurance service result and the net insurance finance income or expenses as determined in accordance with IFRS 17 and as reported in an insurer’s statement of profit or loss within the annual accounts for the relevant accounting period:

Provided that items reported in the other comprehensive income in the statement of comprehensive income shall only be considered for the relevant accounting period in the circumstances where such items would at no stage be transferred to the statement of profit or loss in a subsequent accounting period;

"profit before tax" refers to total profit before tax of an insurer for the relevant accounting period as reported in the audited statement of profit or loss within the annual accounts of the insurer, irrespective of whether such profit is derived exclusively from the business of insurance or otherwise;

"relevant accounting period" refers to the first accounting period for which an insurer has adopted IFRS 17 and each subsequent accounting period thereafter for which the insurer REPORTING STANDARD 17 INSURANCE

CONTRACTS

continues to apply IFRS 17.