IFRS 17 · Case studies (Step 3 of 5)
Practical case
Orvane Assurances SA, a fictitious insurer, and its subsidiaries; Delmar Re, a fictitious reinsurer; IFRS consolidated statements, year end 31 December, amounts in euros.
L1 · Guided · Year N, financial year 2026
Progressive case in four levels: (1) qualify the contracts, form portfolios, groups and cohorts, date the recognition; (2) measure the groups at inception (cash flows, risk adjustment, margin, onerous group, premium allocation approach); (3) subsequent measurement (margin reconciliation, coverage units, loss component, direct participation); (4) closing (presentation, other comprehensive income, reinsurance, transition, boundaries with other standards, reconciliation). Rates, adjustments, unit fractions and percentages are case data.
Orvane Assurances is preparing its IFRS 17 opening balance sheet. It must first be said which products fall under the standard (the standard is announced at this level), then portfolios, groups, cohorts and the recognition date must be formed.
Fundamental level: the method, help and references are shown.
Method
File checklist
2 / 6 stages reached
Context · Dated fact of the file
Orvane Assurances SA, a fictitious insurer, and its subsidiaries; Delmar Re, a fictitious reinsurer; IFRS consolidated statements, year end 31 December, amounts in euros.
Initial event · L1·Year N, financial year 2026 · Current stage
Orvane Assurances is preparing its IFRS 17 opening balance sheet. It must first be said which products fall under the standard (the standard is announced at this level), then portfolios, groups, cohorts and the recognition date must be formed.
Pieces added
New period · L2·Initial recognition, 2026 · Upcoming: unlocks after the current stage
New period · L3·Years N+1 and N+2 · Upcoming: unlocks after the current stage
New period · L4·Closing, reinsurance, transition · Upcoming: unlocks after the current stage
Conclusion · Upcoming: unlocks after the current stage
2 documents to work from at this level.
Document 1Document
| Product | Description | Remark |
|---|---|---|
| Auto Famille | Annual motor insurance issued by Orvane | Compensation for damage after an accident |
| Dépôt Horizon | Deposit whose return follows a stock index | No insured event |
| Garantie Pro | Two-year warranty granted by Orvane's distribution subsidiary when selling appliances | Included in the sale |
| Excédent Delmar | Contract bought by Orvane from the reinsurer Delmar Re for large motor claims | Orvane is the policyholder |
| Décès Temporaire | Capital of €150,000 paid on death before age 65 | Issued by Orvane |
First level: all the data is in the brief and the pieces of this level.
6 parts to answer, marked when you submit the level.
Find the useful facts in the pieces before concluding.
Part 1 · Classification · Recognition
Exhibit 1: classify each Orvane product according to whether it falls under IFRS 17 or not for the entity.
Drag each item into its category, or tap the category under the item.
Auto Famille
Dépôt Horizon
Garantie Pro
Excédent Delmar
Décès Temporaire
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Your working draft for this file: points noted, leads, intermediate calculations.
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Answer every part to submit the level and see the conclusion.
Normative references