IFRS 17Chapter 4Lesson 2
Releasing the margin through coverage units and the loss component
Step 1 of 7Learning objectives
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The margin is released to profit or loss in proportion to the coverage units provided; a group that has become onerous builds a loss component, reversed before the margin is rebuilt.
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Learning objectives
- Explain that the remaining margin is allocated equally between coverage units provided and to be provided.
- Calculate the release of the margin for a period from given coverage units and post the entry.
- Explain how the loss component is built, allocated and reversed after initial recognition.
- Calculate the reversal of the loss component from a given favourable change.