IFRS 17 Risk Adjustment: What Does the Measurement Tell You?
Explore the questions behind risk adjustment measurement through a personal accident insurance example and its reporting context.
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IFRS 17 articles
Every published article on IFRS 17, newest first. Each one takes a lesson and sets out its judgements step by step, with every figure tied to the paragraph it rests on.
IFRS 17 Meets IFRS 9: Accounting Mismatch, Elections and the Classification Overlay
How an insurer's IFRS 17 liabilities and IFRS 9 assets can pull profit or loss apart at transition, and which elections decide what happens next.
IFRS 17 Disclosures: Roll-Forwards, Confidence Levels and Sensitivities
Three notes every insurer prepares, and the questions a reader of the financial statements should be able to answer from each.
IFRS 17 Scope: What Makes a Contract an Insurance Contract
A one year funeral plan is put to the IFRS 17 definition, testing uncertainty, adverse effect and whether the insurance risk transferred is significant.
Why IFRS 17 Exists: What Changed When It Replaced IFRS 4
Follow one motor policy through two reporting views and ask what the new insurance standard changes and what it does not.
IFRS 17 Transition: Full Retrospective, Modified Retrospective or Fair Value
When an insurer first applies IFRS 17, each group in force needs an opening measurement, and the route it takes shapes equity and future profit.
IFRS 17 Insurance Revenue: How the New Profit or Loss Statement Is Built
Why the IFRS 17 income statement opens with insurance revenue rather than premiums, and what that change asks of anyone reading an insurer's results.
PAA Versus GMM Under IFRS 17: Measuring One Group Both Ways
What really changes when one eligible group of insurance contracts is measured under the premium allocation approach and again under the general measurement…
IFRS 17 Insurance Finance Income or Expenses: Profit or Loss or OCI?
A single portfolio policy decides where insurance finance income or expenses are presented, and this lesson follows one group through a year under both options.
LRC and LIC Under IFRS 17: Keeping Two Liabilities Apart
Follow one group of term life policies through a year and decide for yourself which liability each amount belongs to.
IFRS 17 Level of Aggregation: Portfolios, Annual Cohorts and Groups of Contracts
Why an insurer has to assign contracts to groups before it can complete their measurement, and what is at stake when a profitable contract shares a book with…
IFRS 17 Recognition: When a Group of Contracts Goes on the Books
Cover starting is only one of the dates IFRS 17 looks at, so which trigger decides when a group of insurance contracts is recognised?
Separating Components Under IFRS 17: Unbundling an Insurance Contract
Why IFRS 17 requires some parts of a policy to be separated, the order the tests run in and where each separated part goes.
The CSM at Initial Recognition: How IFRS 17 Measures Day One
How the contractual service margin is set when a group of insurance contracts is first recognised, and what happens when the group is onerous.
IFRS 17 Discount Rates: Bottom-Up, Top-Down and What the Rate Must Reflect
How IFRS 17 sets the test a discount rate must pass, and why the route you take to the rate is a judgement and not a formula.
IFRS 17 Fulfilment Cash Flows: What Goes in the Estimate and Where the Contract Ends
Before an insurer can discount anything or add a risk adjustment, it has to decide which future cash flows belong in the measurement and when a contract stops…