BA Practice Exam Qu23 part b) and c)

AndrewLAndrewL
in CIA.IFRS17

  1. For part b) what does i) imply by "including those that may have been previously accounted for separately from the insurance contract liability"

  2. My understanding is that under IFRS17, future CF only includes expenses directly attributable to the insurance portfolio (Can you please confirm)

  1. [2] of part c say "direct payment related to commission and uw costs". But would not that be in [1] already?
    What is the difference? Is it just that one is directly attributable and the other not?

Comments

  • Staff-T1Staff-T1

    1) Think that is referring to IFRS4 CFs that were previously accounted for separately from insurance contract cash flows
    2) Yeap
    3) Some UW costs, cannot be directly attributable to an insurance contract, i.e. an UW working to work on multiple quotes. But yes, pretty much the main main difference between 1 and 2 is whether it is directly attributable or not

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