Requirements for Measuring Future Cash Flows
For the requirement for measuring future cash flows, the first point is:
Include all future cash flows within the contract boundary, including those that may have been previously accounted for separately from the insurance contract liability.
What's meant by the second half of that point - including those that have been previously accounted for? Why would something be accounted for separately from the ins. contract & why would we want to recognize it twice?
Comments
It is mainly referring to certain cash flows under IFRS4 that were part of the insurance contract liability but were not classified as such. I can't think of any examples off the top of my head but I believe some ULAE items and some small differences in paid accounts that are now part of the LIC which were not included in the incurred previously. This is more an accounting topic
So the "previously" here is referring to IFRS4, and are no longer accounted for separately under IRFS17. Thanks!