Insurance service result, insurance finance expense, choice of disaggregation into other comprehensive income and checklist for the reconciliation of the liability: Insurance finance expense

Context

Tarvelle Assurances SA (fictitious entity) closes its accounts on 31 December 20X7. Two groups issued in 20X6 are to be followed: group P (protection, profitable) and group Q (property, onerous). You prepare the margin roll-forward, the reversal of the loss component, the insurance service result and the finance expense of the year.

Assignment

Insurance service result and finance expense

Purpose of the workpaper

Record the opening and closing balances, the insurance revenue, the claims and other expenses, the rate of the period and the choice of disaggregation of the finance expense. Compute the insurance service result and the finance expense of the period, record the entries, then prepare the checklist of the information, including the reconciliation of the liability (not computed by the template), and the conclusion. The choice of disaggregation and the amounts of the period are case data.

Questions of the file covered by this workpaper

• Compute the insurance service result.
• Record the claims incurred in the period.
• Compute the insurance finance expense of the period at the locked-in rate.
• Record the finance expense in profit or loss.
• The choice to disaggregate the finance expense: where does the part due to the change in rate go?
• Record the part in other comprehensive income.

• MemoCompany profile and case conventionsOpen
• ScheduleGroup P: margin and movements of 20X7Open
• MemoActuarial note: coverage units of group POpen
• ScheduleGroup Q: loss componentOpen
• ScheduleInsurance service result of 20X7Open
• ScheduleLiability and finance expense of 20X7Open
• InvoiceIT audit invoiceOpen