IFRS 17 LC & CSM: Financial Statements
In order to better understand IFRS 17, I was hoping to relate it back to CCIR. My knowledge of accounting is very limited, so I was hoping to get some help or advice when it comes to looking at IFRS 17 through the lens of the PC-1 (or other) statements.
1. Release of CSM and RA into profit
When it says that CSM is released into profit, I was wondering where exactly that occurs. The lC reading says the following:
Would (the release of) CSM and RA be stored in line 099 of 20.22?
Additionally, any help about the line: "Including acquisition expenses matching the amounts included in insurance revenue"
would be greatly appreciated, as I'm not sure why we would be offsetting the acquisition expenses.
2. Release of LC into expenses?
Looking at the LRC reading, it states the following:
So then would (the release of) LC be stored in line 110 of 20.22?
3. Balance sheet, 20.11 and 20.10
It looks like numbers relating to RA and CSM are in 20.12, while the numbers relating to LC are in 20.14. Line 659 maps to 20.10 line 62, and line 759 maps to 20.11line 150. Is there anywhere else on the balance sheet that LRC, LIC, CSM, LC, and RA numbers flow into?
Comments
Hi,
For your first point that would be correct. For the second point, I interpret that as more of the amortization of the DAC
Release of LC into expenses
I would think so
Balance sheet , 20.11 and 20.10
Right again
What does DAC mean? I've seen it used in the IFRS overview paper (no longer on syllabus), but so far I have not seen it defined anywhere.
Your answer for 2 got cut off, not sure if you're aware. By release, I'm just using the terminology that was used in IFRS17 - lC:
I figured it worked the exact same as the CSM except for ISE instead of ISR.
DAC stands for Deferred Acquisition Costs - Basically the portion of expenses incurred as premium is written but expensed as premium is earned.
Whoops yeah I wanted to say something then realised it was not correct.
Yeah you are right on your last point!