IFRS 17 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Portfolios, profitability groups and annual cohorts: grouping of contracts and loss of an onerous group at initial recognition: Motor — experienced drivers
Portfolios, profitability groups, annual cohorts, recognition and contract boundary, and the loss of an onerous group
Section 1 of 7
Objective
Section brief
- What to document
- The engagement, its scope and the working mode chosen.
- Why
- A workpaper answers one precise question: framing it avoids off-topic work.
- How
- Read the objective and the assignment, then choose the mode (guided, semi-guided, professional).
- Expected result
- You know which question the workpaper must settle, and for which reporting date.
- Your role
- Preparer of the IFRS 17 workpaper
- Level
- Intermediate
- Estimated time
- ≈ 60 min
- Progress
- 0 / 3 steps done (review excluded)
Context
Quérin Assurances SA (fictitious entity), established in the European Union, issues motor and home contracts and closes its accounts on 31 December 20X6. You prepare the grouping of the contracts issued and the initial recognition of the onerous group.
Assignment
Grouping of the contracts and loss of the onerous group
Purpose of the workpaper
Record the contracts of the portfolio (risks, management), their issue dates and the profitability expected at initial recognition. Then classify the group, check the rule of a maximum gap of one year between the contracts of a cohort, compute the loss of the onerous group, record it and write the conclusion. The fulfilment cash flows of the group are case data.
Questions of the file covered by this workpaper
- Classify each of the three sets of motor contracts into its profitability group.
- Compute the loss of the onerous group at initial recognition.
- Record the loss of the onerous group.
- Which home contracts may be in the same group? May H1 and H4 be?
Documents in the file
Open the documents to pick out the relevant information.