IFRS 17- part 4

When to recognise(reflect in the Financial statement for thefirst time) a group of insurance contract Earliest of: a. The date the insurance cover starts. b. The date the first payment by the policyholder become due. c. When the group of contracts becomes onerous(for onerous contracts only) How to determine the value at which a group of insurance contracts will be intially recognised Remember that...

IFRS 17-Part 3

SEPERATE OR MERGE?? SEPERATION The insurance contract contains various items. Some are treated under IFRS 17 and some are not. The ones that are not should be 'seperated' i.e. they should be treated under other IFRS. Steps an insurance company should follow to "seperate" non-IFRS 17 items a. Determine if the contract contains an embedded derivative (i.e a derivative that is hidden in the contract)...

IFRS 17 part 2

Definitions Insurance contract A contract under which one party (The issuer) accepts SIGNIFICANT insurance risk from another party(The policyholder)  by agreeing to compensate the policyholder if a specified uncertain future event adversely affects the poli­cyholder. Portfolio of insurance contracts A group of insurance contracts that have similar risks and are managed together. Contractual service...

IFRS 17 Part 1

Replacement It will replace IFRS 4 which was an intermediate standard. IFRS 4 was like a quick fix that allowed IASB to buy more time to develop a more comprehensive standard. Objective It aims to ensure that insurance contracts are properly accounted for by insurance companies. Insurance companies should apply it to a. Insurance contract they issue (to the general public, companies...) b. Re-insurance...

Full Solution to ICAN May 2016 Case Study (Requirement 1)

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