IFRS 17Chapter 4Lesson 1
Liabilities for remaining coverage and for incurred claims, margin reconciliation
Step 1 of 6Learning objectives
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The carrying amount of a group is the sum of two liabilities; the margin evolves through a reconciliation whose release to profit or loss is the last movement.
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Learning objectives
- Distinguish the liability for remaining coverage from the liability for incurred claims and classify amounts.
- List the movements of the margin in order: new contracts, interest at the locked-in rate, future services, exchange, release.
- Calculate the closing margin of a group from the movements given.
- Explain that a change relating to future services adjusts the margin and that a change relating to past services goes to profit or loss.