Under the requirements of Australian Accounting Standard AASB 1038 'Life Insurance Contracts',the assets of a life insurer must be measured at:

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According to AASB 1038, the assets of a life insurer must be measured at fair value. This is because the fair value of the assets provides a more accurate measure of their current worth, which is essential when valuing life insurance contracts that span long periods of time. Historical cost and replacement cost may not reflect the true value of the assets, while net present value is used to calculate the present value of future cash flows and is not a measure of asset value.

Under the Requirements of Australian Accounting Standard AASB 1038 'Life