DAC between IFRS 17 and pre IFRS 17

user1user1
in CIA.IFRS17

What does "no deferral in explicit valuation but deferral if UEP - DAC is held" mean?
What does "allowable deferral is different" mean?
What does extension for DAC mean?

Comments

  • grahamgraham

    Here's a very brief description of what is meant:

    1. No Deferral in Explicit Valuation but Deferral if UEP - DAC is Held: This means for some insurance contracts, costs to acquire them can't be delayed in accounting (no deferral), but for others, if you subtract certain deferred costs from the premiums you haven't earned yet, you can delay recognizing these costs.

    2. Allowable Deferral is Different: The rules on what costs you can delay recognizing in your accounting (defer) have changed under the new standard.

    3. Extension for DAC: This talks about stretching out the time over which you can recognize the costs of acquiring insurance contracts in your accounting.

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