IFRS 17 CAS Sample Question #8 vs #12

hstai91hstai91
edited April 25 in CIA.IFRS17

Hi

Solution on Q12 indicated " Segment based on measurement model (Para. 18)" is an consideration.
In Q8, #1 is eligible for PAA but #2 is not, is the reason they are grouped together because we want the "fewest" group possible?
And measurement model is not as big as a concern compare to similar risks, management structure?

Thanks!

Comments

  • Staff-T1Staff-T1
    For Q8: Yes that is right, we want to group into as few groups as possible, whenever we can.
    For Q12: Measurement model is THE most important consideration for making groupings - period. You cannot a group of contracts measured under GMM and another group of contracts measured under PAA under any circumstances
  • hstai91hstai91

    So in Q8, since we decide to group #1 and #2 together, we would have to use GMA for both. If we decide to use PAA for #1, then they have to be group separately?

  • Staff-T1Staff-T1
    Yup that's right
  • NycxBattleNycxBattle

    For question 8 did they make a typo? The answer said group 2 combines the old group 3 and 5. Group 3 is the old group 4 since its onerous.

    But actually Group 5 is onerous and group 4 is non onerous.

    They meat to say group the old 3 and old 4 together to be the new group 2 right?

  • Staff-T1Staff-T1
    Yeap it's a typo. Your understanding is correct
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