Educational Note: IFRS 17 Measurement and Presentation of Canadian Participating Insurance Contracts

Publication date: 30-06-2022

Version: Current

Language available: Bilingual

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The Committee on Life Insurance Financial Reporting (CLIFR) has prepared this educational note to provide guidance related to the measurement and presentation of Canadian participating insurance contracts under International Financial Reporting Standard (IFRS) 17.

This educational note is structured into seven sections and is focused on participating insurance contracts within Canada. Section 1 introduces the purpose of this educational note. Section 2 provides background on participating insurance business within Canada. Section 3 outlines considerations when determining which measurement model would apply. Section 4 discusses the unique aspects of participating business and how they may influence the level of aggregation. Section 5 outlines considerations in determining the fulfillment cash flows. Section 6 provides a high-level discussion related to the contractual service margin (CSM) (e.g., at transition, initial recognition, coverage units, interaction with Par surplus). Section 7 is the final section, and it discusses considerations related to financial reporting (and presentation).

Categories: Practice

Types: Educational notes

Topics: Life insurance

Pages: 39

Format: PDF

Accession no.: 222093