Contract inception vs initial recognition

justwanttopassjustwanttopass
in CIA.IFRS17-1

Hi there,
Whether we can use PAA is determined at contract inception but determining if a contract is onerous is done at initial recognition. What exactly is the difference?
Is it:

  • "contract inception" = effective date of contract (inception date of contract)
  • "initial recognition" = bound date of contract (date contract was signed)?
    Thank you in advance!

Comments

  • Staff-T1Staff-T1
    Contract inception: The date that the contact was entered into. For example, you could enter into a contract at October 31 2023, for a policy effective Jan 1 2024
    Initial recognition: The date the contract is first recognized on the balance sheet. This would be Jan 1 2024
  • justwanttopassjustwanttopass

    Thank you!

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