IFRS17 Sample #17 - LRC using PAA

VadimSemVadimSem
in CIA.IFRS17-LRC

Hi,

Can I get some insight into the distinction between future acquisition costs and deferred acquisition costs and more specifically which premiums they apply to? I'm assuming deferred applies to premiums received and future applies to premium receivable but please let me know if that's wrong!

The reason I ask is that LRC using PAA in this problem subtracts DAC from the unearned portion of the the **received **premium leading me to believe that those costs are attributed to premium already received only and not receivable premium.

Thanks!

Comments

  • Staff-T1Staff-T1
    edited October 2024

    Yes, DAC is for premiums received and FAC is for premiums receivable. This is shown in the sample LRC file provided by the CAS

  • VadimSemVadimSem

    Thank you!

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