Expand
Resize
The IFRS Interpretations Committee agrees to finalise its agenda decision on the transfer of insurance coverage under a group of annuity contracts and to issue a tentative agenda decision on multi-currency groups of insurance contracts

Key points

On 15 June 2022, the IFRS Interpretations Committee (the IFRS IC) agreed to finalise the agenda decision related to the submission on transfer of insurance coverage under a group of annuity contracts, considering the feedback from the comment letters received. The IFRS IC also considered a second submission related to the application of IFRS 17, ‘Insurance Contracts’, to multi-currency groups of insurance contracts.
1. Transfer of insurance coverage under a group of annuity contracts
The submission set out two approaches for determining the services provided under a group of annuity contracts in each period, and asked whether those approaches meet the principle in IFRS 17 for reflecting insurance contract services provided under a group of insurance contracts. The IFRS IC agreed with the staff’s analysis of the comment letters received and, after deliberation, the Committee agreed to finalise the agenda decision, with some amendments to the wording. The IFRS IC concluded that the approach which considers the constant annual benefit is consistent with the principle in paragraph B119 of IFRS 17, while the approach which considers the present value of the current and future benefits is not.
2. Multi-currency groups of insurance contracts
The submission asks the following questions: (a) how and when an entity determines the currency in which an individual insurance contract with cash flows in multiple currencies is denominated; (b) whether an entity is required to consider currency risk when assessing ‘similar risks’ for the purpose of identifying portfolios of insurance contracts; and (c) how an entity determines the currency in which the contractual service margin of a group of insurance contracts is denominated. After a comprehensive discussion, the Committee decided to issue a tentative agenda decision which addresses these questions. The tentative agenda will be subject to a public consultation, which is expected to be 60 days.
Table of contents (Free registration required to view)
  1. Transfer of insurance coverage under a group of annuity contracts
  2. Multi-currency groups of insurance contracts
Expand

Welcome to Viewpoint, the new platform that replaces Inform. Once you have viewed this piece of content, to ensure you can access the content most relevant to you, please confirm your territory.

signin option menu option suggested option contentmouse option displaycontent option contentpage option relatedlink option prevandafter option trending option searchicon option search option feedback option end slide