IFRS 17 Insurance Contracts

Topics hide IFRS 17 at a glance Scope The general measurement model Initial recognition Subsequent measurement A simplified approach and modifications to the general measurement model IFRS 17 Presentation requirements IFRS 17 Transition What is the key impact of IFRS 17 on insurance reporting? IFRS 17 at a glance IFRS 17 introduces the new measurement … Read more

Topics hide General model in Insurance contracts measurement The General Model Estimates of future cash flows Insurance contract boundary Cash flows within the contract boundary Explicit cash flows Insurance contract discount rates Discount rates and characteristics of cash flows Current discount rates consistent with observable market prices Bottom-up approach Top-down approach Discount rates beyond the … Read more

Voluntary separation non-insurance components The prohibition of Voluntary separation non-insurance components will have a significant impact on some accounting practices. The IASB considered whether to permit an entity to separate a non-insurance component when not required to do so by IFRS 17, for example, some investment components with interrelated cash flows, such as policy loans. … Read more

Timing of Initial Recognition of Insurances – Groups of insurance contracts are initially recognised from the earliest of [IFRS 17 25]: when the coverage period starts; when the first payment from the policyholder is due, or actually received if there is no due date; and Timing of Initial Recognition of Insurances based on the facts … Read more

Topics hide Practical implications of IFRS 17 transition choices Practical implications of IFRS 17 transition choices Practical implications of IFRS 17 transition choices The choice between the modified retrospective approach and the fair value approach on transition will impact shareholders’ equity on transition and the release of profit from the insurance contracts in force after … Read more

Topics hide Basis adjustment Basic explanation fair value hedge accounting model Basis adjustment limitation Q: Can an entity use a purchased option as a hedging instrument in a cash flow hedge? Q: Is it possible to de-designate a hedge of foreign currency exposure on forecast purchases or sales under IFRS 9? Basis adjustment is used … Read more

Topics hide Insurance contracts definitions Insurance contracts definitions Insurance contracts definitions Insurance contracts definitions – Here are all of the IFRS 17 Insurance contracts definitions from Appendix A. IFRS 17 Defined terms form C to I Term Definition CSM A component of the carrying amount of the asset or liability for a group of insurance … Read more