Explanatory Report: IFRS 17 Assets for Acquisition Cash Flows

Publication date: 30-06-2022

Version: Current

Language available: Bilingual

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The Committee on Life Insurance Financial Reporting (CLIFR) and the Committee on Property and Casualty Insurance Financial Reporting (PCFRC) have prepared this explanatory report to provide information concerning insurance acquisition cash flows in accordance with IFRS 17 requirements.

The explanatory report is structured into five sections. Section 1 introduces the content presented in this report. Section 2 highlights the key similarities and differences between IFRS 4 and IFRS 17 with regards to acquisition cash flows. Section 3 constitutes the main section of the report, and presents considerations related to establishment of an asset for insurance acquisition cash flows and subsequent recoverability testing under IFRS 17, with a focus on both the general measurement approach (GMA) and premium allocation approach (PAA) for direct contracts. Section 4 presents some variations to the content of Section 3 such as reinsurance contracts, premium allocation approach, and other miscellaneous topics. Section 5 is an appendix that presents a number of illustrative examples, supported by an Excel attachment.

Categories: Practice

Types: Explanatory reports

Topics: Life insurance, Property and casualty insurance

Pages: 34

Format: PDF

Accession no.: 222096