Thủ Thuật về An insurance contract is not derecognized when Mới Nhất
Bùi Trường Sơn đang tìm kiếm từ khóa An insurance contract is not derecognized when được Cập Nhật vào lúc : 2022-09-28 20:00:33 . Với phương châm chia sẻ Mẹo về trong nội dung bài viết một cách Chi Tiết 2022. Nếu sau khi tham khảo tài liệu vẫn ko hiểu thì hoàn toàn có thể lại Comments ở cuối bài để Tác giả lý giải và hướng dẫn lại nha.ACC110: ACCOUNTING FOR SPECIAL TRANSACTIONS PART 1Student Activity Sheet Module #23Name: _________________________________________________________________Section: ____________Schedule: ________________________________________Class number: _______Date: ________________3.SKEPTIC DOUBTFUL Co. obtained a fidelity bond for its cashier. During the year, the cashier embezzledfunds of SKEPTIC. The legal principle that prohibits SKEPTIC from claiming compensation directly from thecashier isa. Principle of subrogation.b. Principle of contribution.c. Principle of loss minimization.d. principle of indemnity.
Nội dung chính- What does IFRS 17 cover?Which of the following types of insurance contracts would probably not be covered by IFRS 4?What are non attributable expenses?Who does IFRS 17 apply to?
This document is the property ofPHINMA EDUCATIONUse the following information for the next three questions:Entity A, a manufacturing entity, obtains insurance against product liability from Entity B, an insurancecompany. Entity B then cedes the insurance contact to Entity C, another insurance company.
4.When a loss is caused by more than one loss events, the closest cause, notthe furthest cause, is taken intoconsideration when determining the extent of the insurer’s liability. This is an application of which legalprinciple of insurance?
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IFRS 17: Insurance ContractsModification and derecognition (paras. 72-77)IASB Implementation information - read more
Modification of an insurance contract
72 If the terms of an insurance contract are modified, for example by agreement between the parties to the contract or by a change in regulation, an entity shall derecognise the original contract and recognise the modified contract as a new contract, applying IFRS 17 or other applicable Standards if, and only if, any of the conditions in (a)-(c) are satisfied. The exercise of a right included in the terms of a contract is not a modification. The conditions are that:
(a) if the modified terms had been included contract inception:
(i) the modified contract would have been excluded from the scope of IFRS 17, applying paragraphs 3-8A;
(ii) an entity would have separated different components from the host insurance contract applying paragraphs 10-13, resulting in a different insurance contract to which IFRS 17 would have applied;
(iii) the modified contract would have had a substantially different contract
…
As mentioned in the first publication, IFRS 17 applies to insurance contracts only and not necessarily all contracts issue by insurer or reinsurer. In addition, investment contracts with Discretionary Participation Features (DPF) are within the scope of insurance contract.
Investment contracts with DPF - Is a financial instrument that provides a particular investor with contractual right to receive additional amounts:
That are expected to be a significant portion of the total contractual benefits.
The timing or amount of which are contractually the discretion of the issuer and
That are contractually based on:
· Returns on specified pool of contracts or specified type of contract.
· Realized or unrealized investment returns a specified pool of assets held by the insurer.
· The profit or loss of the entity or fund that issues the contract.
The following are NOT within the scope of insurance contract:
· Insurance contracts in which the entity is the policyholder.
· Product warranties issue directly by manufacturer, dealer or retailer.
· Employees’ assets and liabilities that arise from employee benefit plan.
· Credit card contract or similar contracts.
Determining whether an insurance contract is in the scope of IFRS 17
Does the contract cover a specific future sự kiện that can adversely affect the policyholder?
If answer is NO – Determine which other IFRS standards or requirements that are applicable.
If the answer is YES – Is the risk transferred from the holder of the contract purely financial risk?
If the answer is YES - Determine which other IFRS standards or requirements that are applicable.
If answer is NO – Is there any significant risk?
If answer is NO – Determine which other IFRS standards or requirements that are applicable.
But,
If the answer is YES – The contract is in the scope of IFRS 17.
Illustrative picture
Timing of Recognition
Insurance contracts are initially recognized from the earliest of:
· When the coverage starts.
· When the first payment from the policyholder is due, or actually received if there is no due date.
· Based on the facts and circumstances, when the insurer determines that the group of contracts is onerous.
NB: For subsequent measurement, Estimates and assumptions are to be reviewed and updated each reporting period.
Derecognition
Insurance contracts are to be derecognized when:
· The insurance contract is extinguished i.e. when the obligation is discharged or cancelled or expired.
· When specified modification of the terms of the contract are met.
What does IFRS 17 cover?
IFRS 17 requires a company to measure insurance contracts using updated estimates and assumptions that reflect the timing of cash flows and any uncertainty relating to insurance contracts. This requirement will provide transparent reporting about a company's financial position and risk.Which of the following types of insurance contracts would probably not be covered by IFRS 4?
As per the given case, the motor insurance, life insurance, and medical insurance all are provide benefit in the future to the policyholder but the pension plan is not the part of the IFRS 4 because it provides benefit when the employee retire from their job.What are non attributable expenses?
Non-directly attributable expenses are recognized as incurred outside of the insurance service result. As per IFRS 17 illustrative example IE 79, non-directly attributable expenses would show under “Other expenses” and impact profits and losses.Who does IFRS 17 apply to?
IFRS 17 applies to insurance contracts issued, to all reinsurance contracts and to investment contracts with discretionary participating features if an entity also issues insurance contracts. Tải thêm tài liệu liên quan đến nội dung bài viết An insurance contract is not derecognized when Insurance contract IFRS 17 Summary CSM in insurance IAS 1 PDF International Accounting Standards