IFRS 17Chapter 5Lesson 1
The premium allocation approach: eligibility, measurement and acquisition cash flows
Step 1 of 8Learning objectives
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A group may measure its liability for remaining coverage by the unearned premium if its coverage is one year or less or if the result does not differ significantly from the general model.
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Learning objectives
- List the two conditions, either of which is enough to use the premium allocation approach.
- Determine, from the facts of a case, whether a group is eligible for the simplified approach.
- Calculate the liability for remaining coverage of a group at the reporting date from given premiums and revenue.
- Calculate the difference in liability between expensing acquisition cash flows and deducting them.