IFRS 17 · Workpapers (Step 4 of 5)
Workpaper assignment
- Course
- Exercises
- Case studies
- Workpapers
- Exams
Eligibility for the premium allocation approach or the variable fee approach, liability for remaining coverage, revenue of the period and entries: Group R — savings with participation
Premium allocation approach, variable fee approach, reinsurance held, modification, transition and disclosures
Section 1 of 8
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
- Expert
- Estimated time
- ≈ 75 min
- Progress
- 0 / 4 steps done (review excluded)
Context
Voyalis Assurances SA (fictitious entity) closes its accounts on 31 December 20X6. It manages a group of one-year travel insurance contracts, a group of three-year contracts, a group of savings contracts with participation, a quota share reinsurance treaty, a modified contract and three groups at the transition to IFRS 17. You prepare the technical note for the chief financial officer.
Assignment
Eligibility for the simplified approaches and measurement of group P
Purpose of the workpaper
Record the coverage period of each contract of the group, the variability expected in the flows and the participation clauses. Judge the eligibility for the premium allocation approach, then for the variable fee approach. For an eligible group, compute the initial liability, the revenue of the period (allocation over time: case assumption) and the closing liability, then record the entries.
Questions of the file covered by this workpaper
- Group P: is it eligible for the premium allocation approach, and why?
- Group Q: is it eligible for the premium allocation approach?
- Group P: compute the initial liability for remaining coverage.
- Record the premium received.
- Record the acquisition cash flows expensed.
- Group P: compute the revenue of the quarter.
- Record the insurance revenue of the quarter.
- Group P: compute the closing liability for remaining coverage.
- Group R: do the contracts have direct participation features?
- Group R: measure the adjustment of the margin for the period.
Documents in the file
Open the documents to pick out the relevant information.