{"entries":[{"key":"LX.IFRS17.000001","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.CONTRACTS_IN_SCOPE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"SCOPE_CATEGORIES","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IFRS17.000001","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000001","section_id":"understand"},"references":["IFRS 17 §3"],"exercise":{"prompt":{"fr":"","en":"For a company that issues insurance contracts, indicate whether each contract falls within the scope of IFRS 17.","es":""},"explanation":{"fr":"","en":"The first three contracts correspond to the three categories of IFRS 17 (the company also issues insurance contracts). A deposit with no cover and a loan are financial instruments (IFRS 17).","es":""},"common_error":{"fr":"","en":"Classifying the reinsurance contract held as out of scope because the company is the policyholder.","es":""},"format":"CLASSIFICATION","categories":[{"id":"IN","text":{"fr":"","en":"Within the scope of IFRS 17","es":""}},{"id":"OUT","text":{"fr":"","en":"Outside the scope of IFRS 17","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"A motor insurance contract issued by the company","es":""},"category":"IN"},{"id":"i2","text":{"fr":"","en":"A reinsurance contract bought by the company from a reinsurer","es":""},"category":"IN"},{"id":"i3","text":{"fr":"","en":"An investment contract with discretionary participation issued by the company","es":""},"category":"IN"},{"id":"i4","text":{"fr":"","en":"A demand deposit with no cover, held by a customer of the group bank","es":""},"category":"OUT"},{"id":"i5","text":{"fr":"","en":"A loan granted by the company to an employee","es":""},"category":"OUT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000002","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.CONTRACTS_IN_SCOPE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"LIFE","tested_point":"DPF_CONDITION","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS17.000001","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000001","section_id":"understand"},"references":["IFRS 17 §3"],"exercise":{"prompt":{"fr":"","en":"Sérénis Épargne issues only investment contracts with discretionary participation features and no insurance contracts: it applies IFRS 17 to these contracts.","es":""},"explanation":{"fr":"","en":"These investment contracts fall within IFRS 17 only if the entity also issues insurance contracts; otherwise they fall under the rules on financial instruments (IFRS 17).","es":""},"common_error":{"fr":"","en":"Forgetting the condition that links these contracts to the issue of insurance contracts.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000003","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.CONTRACTS_IN_SCOPE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REINSURANCE","tested_point":"REINSURANCE_ISSUER_SIDE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS17.000001","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000001","section_id":"understand"},"references":["IFRS 17 §3"],"exercise":{"prompt":{"fr":"","en":"Rivane SA, a direct insurer, cedes part of its fire risk to Orbis Re under an excess-of-loss contract. For Orbis Re, this contract is:","es":""},"explanation":{"fr":"","en":"For the cedant (Rivane) the contract is a reinsurance contract held; for the reinsurer (Orbis Re) it is an insurance contract issued, reinsurance accepted being included in insurance contracts (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"an insurance contract issued (reinsurance accepted), within the scope of IFRS 17","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"a reinsurance contract held, since reinsurance is its business","es":""},"correct":false,"feedback":{"fr":"","en":"Orbis Re issues the contract: for it, it is an insurance contract issued. The contract held is Rivane’s (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"a financial instrument, because the risk is transferred between two companies","es":""},"correct":false,"feedback":{"fr":"","en":"The transfer of significant insurance risk is enough to make an insurance contract, whatever the status of the parties (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"a contract outside the scope, because the standard covers only direct insurers","es":""},"correct":false,"feedback":{"fr":"","en":"The standard expressly covers reinsurance: reinsurance contracts accepted are insurance contracts issued (IFRS 17).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000004","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.INSURANCE_RISK"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"INSURANCE_RISK_DEFINITION","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IFRS17.000001","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000001","section_id":"rule-definition"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"Which sentence correctly describes insurance risk?","es":""},"explanation":{"fr":"","en":"Insurance risk is a risk other than financial risk, transferred from the policyholder to the issuer, and arising from an uncertain future event (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Any risk of loss that the issuer bears, including that of a fall in the markets","es":""},"correct":false,"feedback":{"fr":"","en":"Market risk is a financial risk; it is excluded from the definition of insurance risk (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"A non-financial risk, transferred to the issuer by an uncertain future event","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The risk that the interest rate guaranteed to the policyholder exceeds the return on investments","es":""},"correct":false,"feedback":{"fr":"","en":"A rate gap is a financial risk: no insured event is involved (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"A certain risk, whose amount and date are known in advance","es":""},"correct":false,"feedback":{"fr":"","en":"Without uncertainty about occurrence, timing or cost, there is no uncertain future event (IFRS 17).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000005","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.INSURANCE_RISK"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"RISK_TYPE_CLASSIFICATION","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS17.000001","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000001","section_id":"rule-definition"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"Classify each risk: insurance risk or financial risk.","es":""},"explanation":{"fr":"","en":"Theft, death and loss of cargo are insured events: uncertain and adverse to the policyholder. Exchange rate, index and interest rate are financial variables (IFRS 17).","es":""},"common_error":{"fr":"","en":"Classifying the loss of cargo as a financial risk because it has a market value.","es":""},"format":"CLASSIFICATION","categories":[{"id":"INS","text":{"fr":"","en":"Insurance risk","es":""}},{"id":"FIN","text":{"fr":"","en":"Financial risk","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Theft of an insured vehicle","es":""},"category":"INS"},{"id":"i2","text":{"fr":"","en":"The death of the insured before age 65","es":""},"category":"INS"},{"id":"i3","text":{"fr":"","en":"A change in the euro-sterling exchange rate","es":""},"category":"FIN"},{"id":"i4","text":{"fr":"","en":"A fall in an equity index to which the capital is linked","es":""},"category":"FIN"},{"id":"i5","text":{"fr":"","en":"Loss of a cargo in a storm at sea","es":""},"category":"INS"},{"id":"i6","text":{"fr":"","en":"A rise in interest rates on a variable-rate loan","es":""},"category":"FIN"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000006","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.INSURANCE_RISK"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"LIFE","tested_point":"DEFINITION_ERRORS","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS17.000001","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000001","section_id":"rule-definition"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"A student summarises the definition of an insurance contract. Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"Two statements are correct (adverse event, transfer to the issuer); the certainty of death does not rule out insurance and a stock index is a financial risk (IFRS 17).","es":""},"common_error":{"fr":"","en":"Confusing certainty of the event with absence of uncertainty about its timing.","es":""},"format":"ERROR_SPOT","statements":[{"id":"e1","text":{"fr":"","en":"The insured event must adversely affect the policyholder.","es":""},"erroneous":false},{"id":"e2","text":{"fr":"","en":"Death being certain, a death cover is never an insurance contract.","es":""},"erroneous":true,"correction":{"fr":"","en":"Uncertainty may concern the timing of the event: a death cover transfers insurance risk.","es":""}},{"id":"e3","text":{"fr":"","en":"A contract that pays the value of a stock index transfers insurance risk.","es":""},"erroneous":true,"correction":{"fr":"","en":"A change in an index is a financial risk, not an insurance risk.","es":""}},{"id":"e4","text":{"fr":"","en":"The risk is transferred from the policyholder to the issuer.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000007","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.SIGNIFICANT_INSURANCE_RISK"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"LIFE","tested_point":"SIGNIFICANCE_TWO_CONTRACTS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS17.000001","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000001","section_id":"rule-significant"},"references":["IFRS 17 §B18","IFRS 17 §B19","IFRS 17 §B22"],"exercise":{"prompt":{"fr":"","en":"Two savings contracts have a balance of €100,000. Contract X pays the account balance on death; contract Y pays €300,000. Which conclusion is correct?","es":""},"explanation":{"fr":"","en":"For X, no additional amount is due on death. For Y, €300,000 − €100,000 = €200,000 more than the balance: a scenario with commercial substance and a loss (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is significant for both X and Y, since death is possible in both cases","es":""},"correct":false,"feedback":{"fr":"","en":"For X, death costs nothing more than the balance: no scenario of loss linked to the insured event (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"Y only: it may cost €200,000 more than the balance","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is significant for neither X nor Y, since no probability of death is given","es":""},"correct":false,"feedback":{"fr":"","en":"The test rests on the existence of a scenario with commercial substance and a loss in present value, not on a stated probability (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"It is significant for X, which pays the balance, and not for Y, which pays a multiple","es":""},"correct":false,"feedback":{"fr":"","en":"The reasoning is reversed: the risk is measured by the additional amount that the insured event causes to be paid (IFRS 17).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000008","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.SIGNIFICANT_INSURANCE_RISK"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"SIGNIFICANCE_STATEMENTS","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS17.000001","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000001","section_id":"rule-significant"},"references":["IFRS 17 §B18","IFRS 17 §B19","IFRS 17 §B22"],"exercise":{"prompt":{"fr":"","en":"Which statements about the significance of insurance risk are correct?","es":""},"explanation":{"fr":"","en":"Risk is significant when a scenario with commercial substance can make the issuer lose in present value on that contract; the assessment is made contract by contract and disregards scenarios without substance (IFRS 17).","es":""},"common_error":{"fr":"","en":"Applying a percentage threshold known from other frameworks.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is reached as soon as the probability of the event exceeds 10%.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no probability threshold of this kind; what counts is the existence of a scenario with a loss in present value (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"It is assessed contract by contract.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It requires a scenario with commercial substance.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It is assessed on the whole portfolio, on average.","es":""},"correct":false,"feedback":{"fr":"","en":"The assessment is made contract by contract and not on a portfolio average (IFRS 17).","es":""}},{"id":"E","text":{"fr":"","en":"A scenario without commercial substance is disregarded.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000009","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.SIGNIFICANT_INSURANCE_RISK"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"HEALTH","tested_point":"SIGNIFICANCE_MINI_CASE","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS17.000001","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000001","section_id":"rule-significant"},"references":["IFRS 17 §B18","IFRS 17 §B19","IFRS 17 §B22"],"exercise":{"prompt":{"fr":"","en":"Read the file then answer the two questions.","es":""},"explanation":{"fr":"","en":"The contract does not transfer significant insurance risk: it is a financial instrument. The amount paid does not depend on the event, death or survival (IFRS 17).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Santéa SA offers the contract 'Rente-Plus': the customer pays €50,000 and, if he dies before age 70, his heirs receive €50,000 plus the interest credited; if he survives, he receives the capital and interest at age 70. The interest credited follows a bond index.","es":""},"exhibits":[{"title":{"fr":"","en":"Exhibit 1: benefits","es":""},"body":{"fr":"","en":"Death before age 70: €50,000 + interest earned. Survival at age 70: €50,000 + interest earned. In both cases the amount paid is the same for the same payment date.","es":""}}],"parts":[{"prompt":{"fr":"","en":"The main risk that Santéa bears on this contract is:","es":""},"explanation":{"fr":"","en":"The amount paid is the same on death and on survival: no additional amount is linked to an insured event. Only the bond index moves, which is a financial risk (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"an insurance risk, because the contract provides for death","es":""},"correct":false,"feedback":{"fr":"","en":"Death triggers no additional amount: mentioning death does not create insurance risk (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"a longevity risk that makes the contract significant","es":""},"correct":false,"feedback":{"fr":"","en":"The benefit is identical on survival: the issuer bears no hazard linked to lifespan (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"a financial risk linked to the bond index","es":""},"correct":true}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"The insurance risk of this contract is significant.","es":""},"explanation":{"fr":"","en":"There is no scenario in which the insured event requires Santéa to pay an additional amount: the risk is not significant (IFRS 17).","es":""},"common_error":{"fr":"","en":"Judging the risk significant without any scenario in which the insured event leads to an additional payment.","es":""},"format":"TRUE_FALSE","answer":false,"id":"p2","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000010","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.INSURANCE_RISK"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"THREE_QUESTION_METHOD","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS17.000001","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000001","section_id":"why"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"Put in order the three questions to ask in order to qualify an insurance contract.","es":""},"explanation":{"fr":"","en":"One first checks that there is an uncertain event, then the nature of the risk, and finally its significance: without an uncertain event, the question of its nature does not arise (IFRS 17).","es":""},"common_error":{"fr":"","en":"Assessing significance before establishing an uncertain event and the nature of the risk.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"Is there an uncertain future event that may adversely affect the policyholder?","es":""}},{"id":"s2","text":{"fr":"","en":"Is the risk transferred insurance risk and not financial risk?","es":""}},{"id":"s3","text":{"fr":"","en":"Is this insurance risk significant for this contract?","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000011","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.EXCLUSIONS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"EXCLUSIONS_CLASSIFICATION","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS17.000002","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000002","section_id":"rule-exclusions"},"references":["IFRS 17 §7"],"exercise":{"prompt":{"fr":"","en":"Classify each contract issued according to whether it falls within the scope of IFRS 17 as an insurance contract or is excluded from it.","es":""},"explanation":{"fr":"","en":"The retailer’s warranty linked to the sale (IFRS 17) and the financial guarantee with no issuer choice are excluded from IFRS 17; the damage policy transfers significant insurance risk and stays within the scope (IFRS 17).","es":""},"common_error":{"fr":"","en":"Classifying the retailer’s warranty within the scope of IFRS 17 because a breakdown is an uncertain event.","es":""},"format":"CLASSIFICATION","categories":[{"id":"IN_SCOPE","text":{"fr":"","en":"Within the scope of IFRS 17","es":""}},{"id":"EXCLUDED","text":{"fr":"","en":"Excluded from IFRS 17 (other standard)","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Three-year warranty granted by a retailer when selling a television","es":""},"category":"EXCLUDED"},{"id":"i2","text":{"fr":"","en":"Financial guarantee contract, with no choice by the issuer to apply IFRS 17","es":""},"category":"EXCLUDED"},{"id":"i3","text":{"fr":"","en":"Property damage insurance policy sold to a transport company","es":""},"category":"IN_SCOPE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000012","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.EXCLUSIONS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"WARRANTY_SCOPE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS17.000002","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000002","section_id":"understand"},"references":["IFRS 17 §7"],"exercise":{"prompt":{"fr":"","en":"Zéphyr SA sells electric bikes and offers separately, under a distinct contract sold by a third-party insurer, theft insurance. For the third-party insurer, this contract is:","es":""},"explanation":{"fr":"","en":"The exclusion covers only warranties granted by the seller itself at the time of sale; a third-party insurer’s theft insurance transfers insurance risk and stays within IFRS 17 (IFRS 17, para. 7).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"an insurance contract issued, because it is not a seller’s warranty on the good","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"a warranty excluded from IFRS 17, since it covers a bike sold by Zéphyr","es":""},"correct":false,"feedback":{"fr":"","en":"The exclusion covers the warranty granted by the manufacturer, dealer or retailer itself; here the issuer is a third-party insurer (IFRS 17, para. 7).","es":""}},{"id":"C","text":{"fr":"","en":"a reinsurance contract held, because theft is a risk on an asset","es":""},"correct":false,"feedback":{"fr":"","en":"The third-party insurer issues the contract to its customer: it is not a reinsurance contract held (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"a contract subject to IFRS 15, because it accompanies the sale of a good","es":""},"correct":false,"feedback":{"fr":"","en":"The contract is sold separately by an insurer; it transfers significant insurance risk and is not a seller’s warranty (IFRS 17).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000013","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"BANKING","tested_point":"FINANCIAL_GUARANTEE_OPTION","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IFRS17.000002","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000002","section_id":"rule-exclusions"},"references":["IFRS 17 §7"],"exercise":{"prompt":{"fr":"","en":"An issuer of financial guarantees can never apply IFRS 17 to these contracts: they are necessarily dealt with under IFRS 9.","es":""},"explanation":{"fr":"","en":"A financial guarantee contract is excluded unless the issuer irrevocably chooses to apply IFRS 17 (IFRS 17, para. 7).","es":""},"common_error":{"fr":"","en":"Remembering the exclusion without the issuer’s choice.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000014","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.OPTIONAL_SCOPE_CHOICES"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"ROADSIDE_ASSISTANCE","tested_point":"FIXED_FEE_CONDITIONS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS17.000002","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000002","section_id":"rule-choice"},"references":["IFRS 17 §8","IFRS 17 §8A"],"exercise":{"prompt":{"fr":"","en":"Which conditions must be met for the entity to choose between IFRS 15 and IFRS 17 for a fixed-fee service contract?","es":""},"explanation":{"fr":"","en":"The three conditions concern pricing (no individualised price), the nature of the benefit (a service) and the source of the risk (use of the service) (IFRS 17, para. 8).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The price is not set by reference to an assessment of each customer’s risk.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The contract is entered into with an entity licensed as an insurer.","es":""},"correct":false,"feedback":{"fr":"","en":"The issuer’s licence is not a condition: the standard reasons on the nature of the contract (IFRS 17, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"The customer is compensated by a service and not by money.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The insurance risk arises mainly from the customer’s use of the service.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The premium is paid in advance for the whole term of the contract.","es":""},"correct":false,"feedback":{"fr":"","en":"The payment timing is not a condition of the choice (IFRS 17, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000015","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.OPTIONAL_SCOPE_CHOICES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"ROADSIDE_ASSISTANCE","tested_point":"FIXED_FEE_OPTION_CLOSED","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IFRS17.000002","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000002","section_id":"rule-choice"},"references":["IFRS 17 §8","IFRS 17 §8A"],"exercise":{"prompt":{"fr":"","en":"Assist’Route sells a breakdown assistance subscription whose annual tariff depends on the age, accident history and vehicle of each subscriber. The assistance is provided in kind. May the entity choose between IFRS 15 and IFRS 17 for this contract?","es":""},"explanation":{"fr":"","en":"The pricing condition is not met: the entity has no choice. If the contract transfers significant insurance risk, IFRS 17 applies (IFRS 17, para. 8).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: the price reflects individual risk; IFRS 17 applies if the definition is met","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Yes: the service is provided in kind and not as a cash indemnity","es":""},"correct":false,"feedback":{"fr":"","en":"One condition met is not enough: the individualised price closes the option (IFRS 17, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"No: it must apply IFRS 15, because the contract relates to a service","es":""},"correct":false,"feedback":{"fr":"","en":"Outside the three conditions, the standard does not take the contract out of IFRS 17 simply because it is performed through a service (IFRS 17, para. 8).","es":""}},{"id":"D","text":{"fr":"","en":"Yes, subscriber by subscriber: IFRS 17 for the least risky subscribers and IFRS 15 for the others","es":""},"correct":false,"feedback":{"fr":"","en":"The choice does not depend on risk profile and it does not exist here: individualised pricing rules it out (IFRS 17, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000016","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.OPTIONAL_SCOPE_CHOICES"],"dimension":"PROFESSIONAL_JUDGMENT","format":"ERROR_SPOT","context":"ROADSIDE_ASSISTANCE","tested_point":"FIXED_FEE_JUDGMENT_ERRORS","difficulty":"ADVANCED","estimated_time_s":110,"lesson_id":"LS.IFRS17.000002","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000002","section_id":"judgment"},"references":["IFRS 17 §8","IFRS 17 §8A"],"exercise":{"prompt":{"fr":"","en":"A colleague justifies applying IFRS 15 to a range of breakdown contracts. Spot the erroneous reasoning.","es":""},"explanation":{"fr":"","en":"The file must rest on the terms and actual pricing, explain consistency between comparable contracts and presume no preference by the standard (IFRS 17, para. 8).","es":""},"common_error":{"fr":"","en":"Relying on the commercial name of the product.","es":""},"format":"ERROR_SPOT","statements":[{"id":"e1","text":{"fr":"","en":"The choice is made contract by contract; it is therefore necessary to document why comparable contracts are treated in the same way.","es":""},"erroneous":false},{"id":"e2","text":{"fr":"","en":"Since the standard prefers IFRS 17, choosing IFRS 15 must remain exceptional.","es":""},"erroneous":true,"correction":{"fr":"","en":"The standard establishes no preference between the two: it opens a choice if the conditions are met.","es":""}},{"id":"e3","text":{"fr":"","en":"A tariff grid by broad segment is examined to check that the price is not individualised.","es":""},"erroneous":false},{"id":"e4","text":{"fr":"","en":"The commercial name “breakdown insurance” is enough to conclude that the contract falls under IFRS 17.","es":""},"erroneous":true,"correction":{"fr":"","en":"The classification depends on the terms and on actual pricing, not on the commercial name.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000017","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.COMBINATION_SEPARATION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"LIFE","tested_point":"COMPONENT_STANDARDS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS17.000002","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000002","section_id":"rule-separation"},"references":["IFRS 17 §9","IFRS 17 §10"],"exercise":{"prompt":{"fr":"","en":"A life insurance contract contains several components. Classify each according to the standard that applies after separation.","es":""},"explanation":{"fr":"","en":"Embedded derivatives and distinct investment components are separated under IFRS 9, distinct services under IFRS 15; the death cover that remains falls under IFRS 17 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Applying IFRS 17 to the whole contract without separating.","es":""},"format":"CLASSIFICATION","categories":[{"id":"IFRS9","text":{"fr":"","en":"IFRS 9","es":""}},{"id":"IFRS15","text":{"fr":"","en":"IFRS 15","es":""}},{"id":"IFRS17","text":{"fr":"","en":"IFRS 17","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"An embedded derivative to be separated","es":""},"category":"IFRS9"},{"id":"i2","text":{"fr":"","en":"A distinct investment component","es":""},"category":"IFRS9"},{"id":"i3","text":{"fr":"","en":"A distinct annual wealth advice service, sold separately","es":""},"category":"IFRS15"},{"id":"i4","text":{"fr":"","en":"The capital guarantee on death, which remains after separation","es":""},"category":"IFRS17"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000018","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.COMBINATION_SEPARATION"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"COMBINATION_OF_CONTRACTS","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS17.000002","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000002","section_id":"rule-separation"},"references":["IFRS 17 §9","IFRS 17 §10"],"exercise":{"prompt":{"fr":"","en":"On the same day, Delvane SA signs with the insurer Corvin a credit insurance contract and a loan contract with a Corvin subsidiary; the claim under the first is used to repay the second. How should they be assessed?","es":""},"explanation":{"fr":"","en":"The claim under one funds the repayment of the other: the effect of each contract cannot be understood in isolation, hence treatment as a whole (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Separately, because they are two distinct contracts signed with two legal entities","es":""},"correct":false,"feedback":{"fr":"","en":"A set of contracts entered into with the same counterparty or related parties may have to be treated as a whole; two related legal entities do not prevent it (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"Only the loan, which falls under IFRS 9, the insurance contract being excluded","es":""},"correct":false,"feedback":{"fr":"","en":"The credit insurance contract transfers insurance risk: it is not excluded; it is the overall effect that must be assessed (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"According to whichever of the two contracts has the higher amount","es":""},"correct":false,"feedback":{"fr":"","en":"No amount criterion determines the combination; it is the overall commercial effect that matters (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"As a whole, because their overall commercial effect can be understood only by considering them together","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000019","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.COMBINATION_SEPARATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"LIFE","tested_point":"SEPARATION_MINI_CASE","difficulty":"EXPERT","estimated_time_s":170,"lesson_id":"LS.IFRS17.000002","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000002","section_id":"judgment"},"references":["IFRS 17 §9","IFRS 17 §10"],"exercise":{"prompt":{"fr":"","en":"Read the file then answer the two questions.","es":""},"explanation":{"fr":"","en":"The contract contains three components of different nature: after separation, only the death cover is accounted for under IFRS 17 (IFRS 17).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Sérénis Vie issues the contract 'Capital-Services': (a) a death cover of €200,000; (b) a savings account that the customer can withdraw at any time, distinct from the death cover; (c) an annual health check service, also offered on its own to third parties.","es":""},"exhibits":[{"title":{"fr":"","en":"Exhibit 1: conclusions of the analysis","es":""},"body":{"fr":"","en":"The savings account (b) is a distinct investment component. The health check (c) is a distinct service.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Classify each component according to the standard that applies after separation.","es":""},"explanation":{"fr":"","en":"After separation, the death cover remains within IFRS 17, the distinct investment component falls under IFRS 9 and the distinct service under IFRS 15 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Keeping the savings or health check in IFRS 17: once separated, they fall under IFRS 9 and IFRS 15.","es":""},"format":"CLASSIFICATION","categories":[{"id":"A","text":{"fr":"","en":"IFRS 17","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 9","es":""}},{"id":"C","text":{"fr":"","en":"IFRS 15","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Death cover of €200,000","es":""},"category":"A"},{"id":"i2","text":{"fr":"","en":"Savings account withdrawable at any time","es":""},"category":"B"},{"id":"i3","text":{"fr":"","en":"Annual health check","es":""},"category":"C"}],"id":"p1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Which justification of the separation is the soundest?","es":""},"explanation":{"fr":"","en":"The separation is justified by the criterion specific to each component (that of IFRS 17 for the investment component, that of IFRS 15 for the service), applied to the terms of the contract (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It rests on the commercial presentation of the product in three parts","es":""},"correct":false,"feedback":{"fr":"","en":"Commercial presentation does not justify separation: only the criterion specific to each component counts.","es":""}},{"id":"B","text":{"fr":"","en":"It follows from the wish to reduce the insurance liability","es":""},"correct":false,"feedback":{"fr":"","en":"A presentation objective is not a criterion for separation (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"It applies to the terms the criterion specific to each component","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It applies automatically to any contract that includes a savings account","es":""},"correct":false,"feedback":{"fr":"","en":"A savings account is separated only if it is distinct; it is not automatic (IFRS 17).","es":""}}],"id":"p2","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000020","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.PORTFOLIOS"],"dimension":"RULE_KNOWLEDGE","format":"CLASSIFICATION","context":"GENERIC","tested_point":"PORTFOLIO_CRITERIA","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS17.000003","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-portfolio"},"references":["IFRS 17 §14"],"exercise":{"prompt":{"fr":"","en":"Classify each element according to whether or not it is used to define a portfolio of insurance contracts.","es":""},"explanation":{"fr":"","en":"A portfolio brings together contracts exposed to similar risks and managed together; profitability and year of issue are then used to form groups and cohorts (IFRS 17).","es":""},"common_error":{"fr":"","en":"Mixing the criteria of the portfolio with those of groups or cohorts.","es":""},"format":"CLASSIFICATION","categories":[{"id":"CRIT","text":{"fr":"","en":"Criterion of the portfolio","es":""}},{"id":"NOCRIT","text":{"fr":"","en":"Not a criterion of the portfolio","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Similar risks","es":""},"category":"CRIT"},{"id":"i2","text":{"fr":"","en":"Common management of the contracts","es":""},"category":"CRIT"},{"id":"i3","text":{"fr":"","en":"The same expected profitability (a criterion of groups)","es":""},"category":"NOCRIT"},{"id":"i4","text":{"fr":"","en":"The same year of issue (a criterion of cohorts)","es":""},"category":"NOCRIT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000021","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.PORTFOLIOS"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"MOTOR_INSURANCE","tested_point":"PORTFOLIO_FORMATION","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS17.000003","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-portfolio"},"references":["IFRS 17 §14"],"exercise":{"prompt":{"fr":"","en":"Case data: the risks of each line are of the same nature within a management team, and different from one team to another. Place the product lines of Assurances Navarre in the corresponding portfolios.","es":""},"explanation":{"fr":"","en":"Each line joins the portfolio of its team: the risks there are of the same nature and managed together (IFRS 17).","es":""},"common_error":{"fr":"","en":"Grouping by customer size rather than by nature of the risk.","es":""},"format":"CLASSIFICATION","categories":[{"id":"MOT","text":{"fr":"","en":"Motor portfolio","es":""}},{"id":"HOM","text":{"fr":"","en":"Home portfolio","es":""}},{"id":"LIF","text":{"fr":"","en":"Risk life portfolio","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Private motor insurance (Motor team)","es":""},"category":"MOT"},{"id":"i2","text":{"fr":"","en":"Delivery fleet insurance (Motor team)","es":""},"category":"MOT"},{"id":"i3","text":{"fr":"","en":"Home multi-risk (Home team)","es":""},"category":"HOM"},{"id":"i4","text":{"fr":"","en":"Water damage insurance for co-owned buildings (Home team)","es":""},"category":"HOM"},{"id":"i5","text":{"fr":"","en":"Term death cover (Life team)","es":""},"category":"LIF"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000022","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.PORTFOLIOS"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"THREE_LEVELS_DISTINCTION","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS17.000003","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"understand"},"references":["IFRS 17 §14"],"exercise":{"prompt":{"fr":"","en":"A contract is allocated to a portfolio according to a criterion that is NOT that of a profitability group or of a cohort. Which one?","es":""},"explanation":{"fr":"","en":"The portfolio is based on risks and management; profitability defines the groups and the issue date the cohorts (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The expected profitability at initial recognition","es":""},"correct":false,"feedback":{"fr":"","en":"That is the criterion of the profitability groups, which divide the portfolio (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"The year in which the contract was issued","es":""},"correct":false,"feedback":{"fr":"","en":"That is the criterion of annual cohorts, applied after the profitability groups (IFRS 17, para. 22).","es":""}},{"id":"C","text":{"fr":"","en":"The similarity of the risks and common management","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The amount of premium received","es":""},"correct":false,"feedback":{"fr":"","en":"The amount of premium defines no level of aggregation (IFRS 17).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000023","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.PROFITABILITY_GROUPS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"MINIMUM_GROUPS","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS17.000003","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-groups"},"references":["IFRS 17 §16"],"exercise":{"prompt":{"fr":"","en":"A portfolio is divided into a minimum of three groups at initial recognition, including a group of onerous contracts.","es":""},"explanation":{"fr":"","en":"The three groups are: onerous at inception, no significant possibility of becoming onerous, and remaining (IFRS 17).","es":""},"common_error":{"fr":"","en":"Using only two groups, profitable and onerous: the standard requires at least three.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000024","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.PROFITABILITY_GROUPS"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"MOTOR_INSURANCE","tested_point":"GROUP_ASSIGNMENT_CASE","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS17.000003","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-groups"},"references":["IFRS 17 §16"],"exercise":{"prompt":{"fr":"","en":"Case convention: a contract whose expected result reaches 20% of the premium has no significant possibility of becoming onerous. Place these contracts of a portfolio (premium of €1,000 each) in the appropriate group.","es":""},"explanation":{"fr":"","en":"An expected loss places the contract in the onerous group (K3, K6). A result of at least €200 (20% of €1,000) places it in the group with no significant possibility (K1, K2). The others (K4: €50, K5: €120) are the remaining contracts (IFRS 17; 20% threshold: case convention).","es":""},"common_error":{"fr":"","en":"Placing K4 among the contracts with no significant possibility because it is profitable.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ONER","text":{"fr":"","en":"Onerous at inception","es":""}},{"id":"NOSIG","text":{"fr":"","en":"No significant possibility of becoming onerous","es":""}},{"id":"REST","text":{"fr":"","en":"Remaining contracts","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Contract K1: expected result €300","es":""},"category":"NOSIG"},{"id":"i2","text":{"fr":"","en":"Contract K2: expected result €250","es":""},"category":"NOSIG"},{"id":"i3","text":{"fr":"","en":"Contract K3: expected result −€100","es":""},"category":"ONER"},{"id":"i4","text":{"fr":"","en":"Contract K4: expected result €50","es":""},"category":"REST"},{"id":"i5","text":{"fr":"","en":"Contract K5: expected result €120","es":""},"category":"REST"},{"id":"i6","text":{"fr":"","en":"Contract K6: expected result −€20","es":""},"category":"ONER"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000025","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.PROFITABILITY_GROUPS"],"dimension":"ANALYSIS","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"AGGREGATION_PURPOSE","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS17.000003","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-groups"},"references":["IFRS 17 §16"],"exercise":{"prompt":{"fr":"","en":"Which statements about profitability groups are correct?","es":""},"explanation":{"fr":"","en":"The level of aggregation serves to identify losses early; it requires at least three groups and a classification frozen at inception (IFRS 17).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Separating onerous contracts early prevents their loss from being hidden by profitable contracts.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An onerous contract may be placed with profitable contracts if the portfolio is profitable as a whole.","es":""},"correct":false,"feedback":{"fr":"","en":"The overall profitability of the portfolio does not exempt from separating contracts that are onerous at inception (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"The classification is made at initial recognition and is not reassessed afterwards.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Groups are reviewed every year to reflect actual profitability.","es":""},"correct":false,"feedback":{"fr":"","en":"The composition of the groups is not reassessed after initial recognition (IFRS 17).","es":""}},{"id":"E","text":{"fr":"","en":"A portfolio has at least three profitability groups.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000026","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.ANNUAL_COHORTS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"COHORT_RULE_TF","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS17.000003","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-cohorts"},"references":["IFRS 17 §22"],"exercise":{"prompt":{"fr":"","en":"The “no significant possibility of becoming onerous” group may bring together contracts issued over three different years, without subdivision.","es":""},"explanation":{"fr":"","en":"A group contains no contracts issued more than one year apart: the entity subdivides into annual cohorts (IFRS 17, para. 22).","es":""},"common_error":{"fr":"","en":"Grouping several years' contracts without subdividing: each group covers only one annual cohort.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000027","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.ANNUAL_COHORTS"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"MOTOR_INSURANCE","tested_point":"COHORT_ALLOCATION","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IFRS17.000003","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-cohorts"},"references":["IFRS 17 §22"],"exercise":{"prompt":{"fr":"","en":"Case convention: cohorts by calendar year. Place these motor contracts of the same profitability group in their cohort.","es":""},"explanation":{"fr":"","en":"With calendar-year cohorts, the cohort is the year of issue: 2026, 2027 then 2028 (case convention; IFRS 17, para. 22).","es":""},"common_error":{"fr":"","en":"Assigning a contract to the next or previous year's cohort: with calendar cohorts, it is the year of issue.","es":""},"format":"CLASSIFICATION","categories":[{"id":"C26","text":{"fr":"","en":"2026 cohort","es":""}},{"id":"C27","text":{"fr":"","en":"2027 cohort","es":""}},{"id":"C28","text":{"fr":"","en":"2028 cohort","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Contract issued on 10 February 2026","es":""},"category":"C26"},{"id":"i2","text":{"fr":"","en":"Contract issued on 5 December 2026","es":""},"category":"C26"},{"id":"i3","text":{"fr":"","en":"Contract issued on 20 January 2027","es":""},"category":"C27"},{"id":"i4","text":{"fr":"","en":"Contract issued on 30 September 2027","es":""},"category":"C27"},{"id":"i5","text":{"fr":"","en":"Contract issued on 15 March 2028","es":""},"category":"C28"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000028","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.ANNUAL_COHORTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"MAX_NUMBER_OF_GROUPS","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS17.000003","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-cohorts"},"references":["IFRS 17 §22"],"exercise":{"prompt":{"fr":"","en":"An insurer has a single portfolio. It issues contracts in 2026 and in 2027 (calendar-year cohorts, case convention), and each year includes contracts of all three profitability categories. How many distinct groups must it manage?","es":""},"explanation":{"fr":"","en":"1 portfolio × 3 profitability groups × 2 cohorts = 6 groups: each cohort forms, with each profitability group, a distinct group (IFRS 17, para. 22).","es":""},"common_error":{"fr":"","en":"Counting only 3 groups, forgetting the subdivision by cohort.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Portfolios","es":""},"value":"1","unit":"UNITS"},{"label":{"fr":"","en":"Profitability groups per portfolio","es":""},"value":"3","unit":"UNITS"},{"label":{"fr":"","en":"Annual cohorts","es":""},"value":"2","unit":"UNITS"}],"steps":[{"id":"s1","label":{"fr":"","en":"Number of groups of contracts","es":""},"answer":6,"tolerance":0,"unit":"UNITS"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Number of groups of contracts","es":""},"expression":"a * b * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Portfolios","es":""},"value":1,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Profitability groups per portfolio","es":""},"value":3,"unit":"UNITS"},{"symbol":"c","meaning":{"fr":"","en":"Annual cohorts","es":""},"value":2,"unit":"UNITS"}],"result":6,"unit":"UNITS","rationale":{"fr":"","en":"1 portfolio × 3 profitability groups × 2 cohorts = 6 groups: each cohort forms, with each profitability group, a distinct group (IFRS 17, para. 22).","es":""}}],"references":["REF.IFRS17.22"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000029","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.EU_COHORT_EXEMPTION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"EU_EXEMPTION_NATURE","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IFRS17.000003","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-eu"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"The annual cohort exemption is an option provided for by IFRS 17 as issued by the IASB.","es":""},"explanation":{"fr":"","en":"It results from Regulation (EU) 2021/2036: it is an EU-specific exception, not an option of IFRS as issued by the IASB (Regulation (EU) 2021/2036).","es":""},"common_error":{"fr":"","en":"Presenting a regional exception as an IFRS option.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000030","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.EU_COHORT_EXEMPTION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"LIFE","tested_point":"EU_EXEMPTION_SCOPE","difficulty":"ADVANCED","estimated_time_s":70,"lesson_id":"LS.IFRS17.000003","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-eu"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"Under Regulation (EU) 2021/2036, for which contracts is the annual cohort requirement optional in the EU?","es":""},"explanation":{"fr":"","en":"The EU exemption covers two categories: intergenerationally mutualised contracts and cash-flow matched contracts; other contracts remain subject to annual cohorts (Regulation (EU) 2021/2036).","es":""},"common_error":{"fr":"","en":"Extending the EU exemption to all annual contracts: it covers only intergenerationally mutualised and cash-flow-matched contracts.","es":""},"format":"CLASSIFICATION","categories":[{"id":"OPT","text":{"fr":"","en":"Optional in the EU","es":""}},{"id":"MAND","text":{"fr":"","en":"Always required","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Contracts with intergenerational mutualisation of policyholders","es":""},"category":"OPT"},{"id":"i2","text":{"fr":"","en":"Contracts cash-flow matched to a portfolio of assets","es":""},"category":"OPT"},{"id":"i3","text":{"fr":"","en":"Annual motor insurance with no intergenerational mutualisation","es":""},"category":"MAND"},{"id":"i4","text":{"fr":"","en":"One-year home insurance with fixed premiums","es":""},"category":"MAND"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000031","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.EU_COHORT_EXEMPTION"],"dimension":"ANALYSIS","format":"MULTIPLE_CHOICE","context":"LIFE","tested_point":"EU_EXEMPTION_EFFECTS","difficulty":"ADVANCED","estimated_time_s":110,"lesson_id":"LS.IFRS17.000003","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-eu"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"An EU entity uses the annual cohort exemption for a portfolio of mutualised contracts. Which statements are correct?","es":""},"explanation":{"fr":"","en":"The exemption is an exception under EU law: an entity using it discloses it, identifies the portfolios and applies the EU-adopted text on this point; the Commission is to reassess it before the end of 2027 (Regulation (EU) 2021/2036).","es":""},"common_error":{"fr":"","en":"Believing that the 2020 amendments removed annual cohorts.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The 2020 amendments to IFRS 17 removed the annual cohort requirement for these contracts.","es":""},"correct":false,"feedback":{"fr":"","en":"The June 2020 amendments did not change the annual cohort requirement; the exemption comes from EU law.","es":""}},{"id":"B","text":{"fr":"","en":"It must disclose this and identify the portfolios concerned.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"On this point, it applies IFRS 17 as adopted by the EU and not as issued by the IASB.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The exemption extends to all insurance contracts issued by the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"It covers only intergenerationally mutualised contracts and cash-flow matched contracts.","es":""}},{"id":"E","text":{"fr":"","en":"The European Commission is to review the exemption before the end of 2027.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000032","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"RECOGNITION_DATES_LIST","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS17.000004","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000004","section_id":"understand"},"references":["IFRS 17 §25"],"exercise":{"prompt":{"fr":"","en":"A group of contracts issued is recognised at the earliest of several dates. Which of these dates are to be compared?","es":""},"explanation":{"fr":"","en":"The three dates to compare are the start of coverage, the due date of the first payment and, where applicable, the date on which the group becomes onerous (IFRS 17).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The date the contract is approved by the board of directors","es":""},"correct":false,"feedback":{"fr":"","en":"Internal approval is not one of the dates of the rule (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"The start date of the coverage period of the group","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The due date of the first payment from a policyholder","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The date the first claim is settled","es":""},"correct":false,"feedback":{"fr":"","en":"The first claim comes later: it does not determine recognition of the group (IFRS 17).","es":""}},{"id":"E","text":{"fr":"","en":"The date on which the group becomes onerous, where applicable","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000033","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.RECOGNITION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"HEALTH","tested_point":"RECOGNITION_DATE_ONEROUS","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IFRS17.000004","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000004","section_id":"rule-recognition"},"references":["IFRS 17 §25"],"exercise":{"prompt":{"fr":"","en":"A group has coverage starting on 1 September, a first payment due on 20 August, and the entity concludes on 14 July that the expected cash flows are a net outflow. On what date is the group recognised?","es":""},"explanation":{"fr":"","en":"14 July is the earliest of the three dates (14 July, 20 August, 1 September): recognition occurs when the group becomes onerous (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"20 August, the date on which the entity actually collects the first payment and takes on the cash risk","es":""},"correct":false,"feedback":{"fr":"","en":"The date retained is the earliest: 14 July precedes the due date of the payment (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"1 September, start of coverage, because that is when the service begins to be provided","es":""},"correct":false,"feedback":{"fr":"","en":"The start of coverage is the latest of the three dates here: an onerous group is recognised as soon as it becomes so (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"31 December, at the year-end, when the financial statements are drawn up","es":""},"correct":false,"feedback":{"fr":"","en":"The year-end does not determine the recognition date (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"14 July","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000034","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.RECOGNITION"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"RECOGNITION_ORDER_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS17.000004","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000004","section_id":"rule-recognition"},"references":["IFRS 17 §25"],"exercise":{"prompt":{"fr":"","en":"Put in order the steps to determine the recognition date of a group.","es":""},"explanation":{"fr":"","en":"The dates are listed, those that do not apply are set aside, the earliest is taken and the group is measured on that date (IFRS 17).","es":""},"common_error":{"fr":"","en":"Using the coverage start date by default without comparing it with the other dates: the earliest is used.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"List the start of coverage, the first payment due and the date on which the group becomes onerous","es":""}},{"id":"s2","text":{"fr":"","en":"Set aside the dates that do not exist for this group","es":""}},{"id":"s3","text":{"fr":"","en":"Take the earliest of the remaining dates","es":""}},{"id":"s4","text":{"fr":"","en":"Measure the group for the first time on that date","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000035","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.CONTRACT_BOUNDARY"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"LIFE","tested_point":"BOUNDARY_RENEWABLE_TF","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS17.000004","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000004","section_id":"rule-boundary"},"references":["IFRS 17 §34"],"exercise":{"prompt":{"fr":"","en":"For a contract renewable every year whose insurer can freely reprice at each renewal according to the policyholder’s risk, the premiums of subsequent years are within the contract boundary.","es":""},"explanation":{"fr":"","en":"The insurer can reassess the risk and set a price that fully reflects it: its substantive obligation ends at each renewal, so later premiums are outside the boundary (IFRS 17).","es":""},"common_error":{"fr":"","en":"Including future renewal premiums when the insurer can freely reprice: they are outside the boundary.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000036","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.CONTRACT_BOUNDARY"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"LIFE","tested_point":"BOUNDARY_CLASSIFICATION","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS17.000004","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000004","section_id":"rule-boundary"},"references":["IFRS 17 §34"],"exercise":{"prompt":{"fr":"","en":"Each contract has an annual premium of €1,200 over a three-year relationship. Classify according to whether the premiums of years 2 and 3 are within the contract boundary or not.","es":""},"explanation":{"fr":"","en":"If the price can follow the risk fully, the obligation ends at renewal (outside the boundary). If the price is fixed or capped below the expected risk, the obligation continues (within the boundary) (IFRS 17).","es":""},"common_error":{"fr":"","en":"Treating a cap on increases as having no effect on the boundary.","es":""},"format":"CLASSIFICATION","categories":[{"id":"IN","text":{"fr":"","en":"Premiums within the boundary","es":""}},{"id":"OUT","text":{"fr":"","en":"Premiums outside the boundary","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Premium guaranteed at €1,200 for three years, the insurer cannot change it","es":""},"category":"IN"},{"id":"i2","text":{"fr":"","en":"Annual renewal with a new tariff freely set according to each insured’s risk","es":""},"category":"OUT"},{"id":"i3","text":{"fr":"","en":"Annual renewal with an increase capped at 2%, while expected claims rise by 10% per year","es":""},"category":"IN"},{"id":"i4","text":{"fr":"","en":"Annual renewal with a tariff set on the average risk of the portfolio, which the insurer can adjust freely each year","es":""},"category":"OUT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000037","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.CONTRACT_BOUNDARY"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"LIFE","tested_point":"BOUNDARY_MINI_CASE","difficulty":"EXPERT","estimated_time_s":160,"lesson_id":"LS.IFRS17.000004","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000004","section_id":"judgment"},"references":["IFRS 17 §34"],"exercise":{"prompt":{"fr":"","en":"Read the file then answer the two questions.","es":""},"explanation":{"fr":"","en":"The cap clause prevents the risk from being fully reflected: the premiums of later years remain within the contract boundary (IFRS 17).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Prévoyance Altis sells a cover renewable every year. At each renewal, Altis may revise the tariff, but a protection clause caps any increase at 3% per year. Expected claims for the cohort rise by 12% per year. Current annual premium: €1,000.","es":""},"exhibits":[{"title":{"fr":"","en":"Exhibit 1: pricing","es":""},"body":{"fr":"","en":"Year 2 premium at the cap: €1,030. Premium that would fully reflect the risk in year 2: €1,120.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Calculate the gap between the premium that would reflect the risk and the capped premium in year 2.","es":""},"explanation":{"fr":"","en":"€1,120 − €1,030 = €90: the clause prevents the price from fully following the risk.","es":""},"common_error":{"fr":"","en":"Judging the clause has no effect: a cap that prevents pricing from following risk keeps premiums inside the boundary.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Capped premium, year 2","es":""},"value":"1030","unit":"EUR"},{"label":{"fr":"","en":"Premium fully reflecting the risk, year 2","es":""},"value":"1120","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Premium gap","es":""},"answer":90,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"ANALYSIS","formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Premium gap","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Premium fully reflecting the risk, year 2","es":""},"value":1120,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Capped premium, year 2","es":""},"value":1030,"unit":"EUR"}],"result":90,"unit":"EUR"}],"references":["REF.IFRS17.34"]}},{"prompt":{"fr":"","en":"Which conclusion about the contract boundary is best supported?","es":""},"explanation":{"fr":"","en":"The 3% cap prevents the price from following claims that grow by 12%: the ability to set a price fully reflecting the risk is missing, so the boundary extends (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Altis’s obligation continues: its price cannot fully reflect the risk","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The boundary is one year, since the contract renews every year and Altis may revise the tariff","es":""},"correct":false,"feedback":{"fr":"","en":"The right to revise the tariff is not enough: the price must be able to fully reflect the risk, which the cap prevents (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"The boundary is three years, the usual duration of this type of contract","es":""},"correct":false,"feedback":{"fr":"","en":"No usual duration sets the boundary: it is the practical ability to reassess and set the price that counts (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"The boundary depends on the profitability of the contract, assessed at inception","es":""},"correct":false,"feedback":{"fr":"","en":"Profitability comes into the groups, not into the contract boundary (IFRS 17).","es":""}}],"id":"p2","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000038","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.FULFILMENT_CASH_FLOWS"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"FCF_BLANKS","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS17.000005","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"understand"},"references":["IFRS 17 §32"],"exercise":{"prompt":{"fr":"","en":"Complete the composition of the fulfilment cash flows.","es":""},"explanation":{"fr":"","en":"Three blocks: estimated future cash flows, time value of money (discounting) and adjustment for non-financial risk (IFRS 17).","es":""},"common_error":{"fr":"","en":"Including past flows or a return adjustment: fulfilment cash flows combine future flows, time value and non-financial risk.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Fulfilment cash flows = estimates of {{a}} + adjustment for the {{b}} value of money + adjustment for non-financial {{c}}.","es":""},"blanks":[{"id":"a","mode":"CHOICE","choices":[{"id":"FL","text":{"fr":"","en":"future cash flows","es":""}},{"id":"PA","text":{"fr":"","en":"past cash flows","es":""}}],"answer":"FL"},{"id":"b","mode":"CHOICE","choices":[{"id":"TM","text":{"fr":"","en":"time","es":""}},{"id":"MK","text":{"fr":"","en":"market","es":""}}],"answer":"TM"},{"id":"c","mode":"CHOICE","choices":[{"id":"RI","text":{"fr":"","en":"risk","es":""}},{"id":"RE","text":{"fr":"","en":"return","es":""}}],"answer":"RI"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000039","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.FULFILMENT_CASH_FLOWS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MOTOR_INSURANCE","tested_point":"FCF_CALCULATION","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS17.000005","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"numeric-fcf"},"references":["IFRS 17 §32"],"exercise":{"prompt":{"fr":"","en":"For a group, the present value of outflows is €80,000, that of inflows €90,000 and the risk adjustment €3,000 (case data). Calculate the discounted net outflow and then the fulfilment cash flows.","es":""},"explanation":{"fr":"","en":"Net outflow = €80,000 − €90,000 = −€10,000; fulfilment cash flows = −€10,000 + €3,000 = −€7,000: a net inflow of €7,000 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Subtracting the risk adjustment instead of adding it.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"PV of outflows","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"PV of inflows","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Risk adjustment","es":""},"value":"3000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Discounted net outflow (negative if net inflow)","es":""},"answer":-10000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Fulfilment cash flows","es":""},"answer":-7000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Discounted net outflow (negative if net inflow)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"PV of outflows","es":""},"value":80000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"PV of inflows","es":""},"value":90000,"unit":"EUR"}],"result":-10000,"unit":"EUR"}],"references":["REF.IFRS17.32"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000040","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.FULFILMENT_CASH_FLOWS"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"FCF_SIGN_MEANING","difficulty":"ADVANCED","estimated_time_s":70,"lesson_id":"LS.IFRS17.000005","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"rule-ra"},"references":["IFRS 17 §32"],"exercise":{"prompt":{"fr":"","en":"The fulfilment cash flows of a group, before any margin, are −€6,000. Which reading is correct?","es":""},"explanation":{"fr":"","en":"A negative amount means that expected inflows exceed outflows, risk adjustment included: the group is expected to be profitable (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A net outflow of €6,000: the insurer will pay more than it receives, the group is onerous","es":""},"correct":false,"feedback":{"fr":"","en":"The sign is reversed: a net outflow would be positive, a net inflow is negative (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"An expected net inflow of €6,000: the group is expected to be profitable at inception","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The liability of the group is −€6,000, an insurance asset","es":""},"correct":false,"feedback":{"fr":"","en":"The fulfilment cash flows are not the liability: the contractual service margin is added to them to form the liability (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"A loss of €6,000 to be recognised in profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"No loss arises: a net inflow means an expected profit, held back by the margin (IFRS 17).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000041","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.FUTURE_CASH_FLOWS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MOTOR_INSURANCE","tested_point":"PROBABILITY_WEIGHTED_ESTIMATE","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IFRS17.000005","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"rule-estimates"},"references":["IFRS 17 §33"],"exercise":{"prompt":{"fr":"","en":"Three claims scenarios for a group: 60% probability of €100,000, 30% of €120,000, 10% of €150,000. Calculate the unbiased, probability-weighted estimate.","es":""},"explanation":{"fr":"","en":"60% × €100,000 = €60,000; 30% × €120,000 = €36,000; 10% × €150,000 = €15,000; total €111,000 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Adopting the most likely scenario (€100,000) instead of the weighted mean.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Favourable scenario (60%)","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Medium scenario (30%)","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Adverse scenario (10%)","es":""},"value":"150000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Contribution of the favourable scenario","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Contribution of the medium scenario","es":""},"answer":36000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Contribution of the adverse scenario","es":""},"answer":15000,"tolerance":0,"unit":"EUR"},{"id":"s4","label":{"fr":"","en":"Weighted estimate","es":""},"answer":111000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Contribution of the favourable scenario","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Three claims scenarios for a group: 60%","es":""},"value":60,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Favourable scenario (60%)","es":""},"value":100000,"unit":"EUR"}],"result":60000,"unit":"EUR"}],"references":["REF.IFRS17.33"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000042","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.FUTURE_CASH_FLOWS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MOTOR_INSURANCE","tested_point":"CASH_FLOW_INCLUSION","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS17.000005","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"rule-estimates"},"references":["IFRS 17 §33"],"exercise":{"prompt":{"fr":"","en":"A group of motor contracts has a contract boundary of one year. Classify each cash flow: included in the estimate of fulfilment cash flows or excluded.","es":""},"explanation":{"fr":"","en":"Cash flows attributable to the contracts within the contract boundary are included; renewal beyond the boundary, investment income and non-attributable overheads are excluded (IFRS 17).","es":""},"common_error":{"fr":"","en":"Including investment income because it funds the claims.","es":""},"format":"CLASSIFICATION","categories":[{"id":"IN","text":{"fr":"","en":"Included","es":""}},{"id":"OUT","text":{"fr":"","en":"Excluded","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Expected claims over the coverage period","es":""},"category":"IN"},{"id":"i2","text":{"fr":"","en":"Claims handling expenses attributable to the contracts","es":""},"category":"IN"},{"id":"i3","text":{"fr":"","en":"Premiums of a possible renewal beyond the contract boundary","es":""},"category":"OUT"},{"id":"i4","text":{"fr":"","en":"Expected investment income on the assets covering the contracts","es":""},"category":"OUT"},{"id":"i5","text":{"fr":"","en":"Head-office overheads not attributable to the contracts","es":""},"category":"OUT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000043","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.DISCOUNTING"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"DISCOUNT_CRITERIA_TF","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS17.000005","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"rule-discounting"},"references":["IFRS 17 §36"],"exercise":{"prompt":{"fr":"","en":"The discount rate for the cash flows of a group reflects the time value of money and the characteristics of the cash flows, not the return on the assets the insurer holds against it.","es":""},"explanation":{"fr":"","en":"The rate expresses the liability: time value, characteristics of the cash flows and liquidity (IFRS 17).","es":""},"common_error":{"fr":"","en":"Discounting at the return on assets held: the rate reflects the liability's characteristics.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000044","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.DISCOUNTING"],"dimension":"CALCULATION","format":"CALCULATION","context":"PROPERTY","tested_point":"PV_SINGLE_FLOW","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS17.000005","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"rule-discounting"},"references":["IFRS 17 §36"],"exercise":{"prompt":{"fr":"","en":"A claim of €12,100 will be paid in two years. The case discount rate is 10% a year. Calculate its present value.","es":""},"explanation":{"fr":"","en":"€12,100 ÷ 1.10² = €12,100 ÷ 1.21 = €10,000.","es":""},"common_error":{"fr":"","en":"Discounting over one year only: €12,100 ÷ 1.10.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cash flow","es":""},"value":"12100","unit":"EUR"},{"label":{"fr":"","en":"Discount rate","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Term","es":""},"value":"2","unit":"YEARS"}],"steps":[{"id":"s1","label":{"fr":"","en":"Present value","es":""},"answer":10000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Present value","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cash flow","es":""},"value":12100,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate","es":""},"value":10,"unit":"PERCENT"}],"result":10000,"unit":"EUR"}],"references":["REF.IFRS17.36"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000045","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.DISCOUNTING"],"dimension":"PROFESSIONAL_JUDGMENT","format":"ERROR_SPOT","context":"LIFE","tested_point":"DISCOUNT_RATE_JUDGMENT","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS17.000005","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"judgment"},"references":["IFRS 17 §36"],"exercise":{"prompt":{"fr":"","en":"An analyst justifies the discount rate adopted for a group of contracts. Spot the erroneous justifications.","es":""},"explanation":{"fr":"","en":"The rate is justified by the characteristics of the liability (duration, liquidity, sensitivity); neither the return on assets nor the cost of capital is the criterion (IFRS 17).","es":""},"common_error":{"fr":"","en":"Aligning the rate on the return of the backing assets.","es":""},"format":"ERROR_SPOT","statements":[{"id":"e1","text":{"fr":"","en":"The rate was built from the risk-free curve, with an adjustment for the liquidity of the liability.","es":""},"erroneous":false},{"id":"e2","text":{"fr":"","en":"Since the backing assets earn 6%, the discount rate of the liability is set at 6%.","es":""},"erroneous":true,"correction":{"fr":"","en":"The rate reflects the characteristics of the liability, not the return on the assets held.","es":""}},{"id":"e3","text":{"fr":"","en":"The duration of the group’s cash flows was taken into account in choosing the point on the curve.","es":""},"erroneous":false},{"id":"e4","text":{"fr":"","en":"The rate is the entity’s cost of capital, which is the benchmark imposed by the standard.","es":""},"erroneous":true,"correction":{"fr":"","en":"The standard does not adopt the cost of capital as the discount rate and imposes no single method of construction.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000046","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.RISK_ADJUSTMENT"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"RISK_ADJUSTMENT_DEFINITION","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS17.000005","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"rule-ra"},"references":["IFRS 17 §37"],"exercise":{"prompt":{"fr":"","en":"Which sentence correctly describes the adjustment for non-financial risk?","es":""},"explanation":{"fr":"","en":"The adjustment for non-financial risk is the compensation required for bearing uncertainty about the amount and timing of cash flows (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It adds a safety margin to the claims assumptions so that they are deliberately prudent","es":""},"correct":false,"feedback":{"fr":"","en":"The cash flow assumptions are unbiased; uncertainty is measured separately, with no hidden prudence (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"It measures the effect of a change in interest rates on the liability","es":""},"correct":false,"feedback":{"fr":"","en":"Financial risk belongs in the discounting, not in the non-financial risk adjustment (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"It compensates the entity for the uncertainty about the amount and timing of the cash flows","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It represents the group’s profit not yet earned","es":""},"correct":false,"feedback":{"fr":"","en":"Unearned profit is the contractual service margin, another element of the liability (IFRS 17).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000047","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.RISK_ADJUSTMENT"],"dimension":"ANALYSIS","format":"TRUE_FALSE","context":"GENERIC","tested_point":"RISK_ADJUSTMENT_ENTITY_SPECIFIC","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IFRS17.000005","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"rule-ra"},"references":["IFRS 17 §37"],"exercise":{"prompt":{"fr":"","en":"Two insurers may legitimately adopt different risk adjustments for identical contracts, because the adjustment reflects each entity’s own risk aversion.","es":""},"explanation":{"fr":"","en":"The risk adjustment is entity-specific, the standard imposing neither a single technique nor a single level (IFRS 17).","es":""},"common_error":{"fr":"","en":"Believing that the adjustment must be identical for all insurers.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000048","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.FULFILMENT_CASH_FLOWS"],"dimension":"CALCULATION","format":"MINI_CASE","context":"MOTOR_INSURANCE","tested_point":"FCF_MINI_CASE","difficulty":"ADVANCED","estimated_time_s":200,"lesson_id":"LS.IFRS17.000005","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"numeric-fcf"},"references":["IFRS 17 §32"],"exercise":{"prompt":{"fr":"","en":"Read the file then answer the three questions.","es":""},"explanation":{"fr":"","en":"The fulfilment cash flows of group A are −€6,000: an expected net inflow after the risk adjustment (IFRS 17).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Mutuelle Vallor measures group A (2026 cohort, motor) at initial recognition. The case discount rate is 5% a year and the risk adjustment €4,000.","es":""},"exhibits":[{"title":{"fr":"","en":"Expected cash flows","es":""},"body":{"fr":"","en":"Premiums received at the recognition date: €120,000. Claims: €52,500 in one year and €55,125 in two years. Claims handling expenses: €10,500 in one year.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Discount each outflow, cash flow by cash flow.","es":""},"explanation":{"fr":"","en":"€52,500 ÷ 1.05 = €50,000; €55,125 ÷ 1.05² = €50,000; €10,500 ÷ 1.05 = €10,000.","es":""},"common_error":{"fr":"","en":"Discounting all flows over one year: each flow is discounted according to its own timing.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Claims in 1 year","es":""},"value":"52500","unit":"EUR"},{"label":{"fr":"","en":"Claims in 2 years","es":""},"value":"55125","unit":"EUR"},{"label":{"fr":"","en":"Expenses in 1 year","es":""},"value":"10500","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"PV of claims at 1 year","es":""},"answer":50000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"PV of claims at 2 years","es":""},"answer":50000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"PV of expenses at 1 year","es":""},"answer":10000,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"PV of claims at 1 year","es":""},"expression":"a / (1 + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Claims in 1 year","es":""},"value":52500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"The case discount rate is 5%","es":""},"value":5,"unit":"PERCENT"}],"result":50000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"PV of claims at 2 years","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Claims in 2 years","es":""},"value":55125,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"The case discount rate is 5%","es":""},"value":5,"unit":"PERCENT"}],"result":50000,"unit":"EUR"},{"step":"s3","meaning":{"fr":"","en":"PV of expenses at 1 year","es":""},"expression":"a / (1 + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expenses in 1 year","es":""},"value":10500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"The case discount rate is 5%","es":""},"value":5,"unit":"PERCENT"}],"result":10000,"unit":"EUR"}],"references":["REF.IFRS17.32"]}},{"prompt":{"fr":"","en":"Calculate the discounted net outflow and then the fulfilment cash flows of the group.","es":""},"explanation":{"fr":"","en":"€110,000 − €120,000 = −€10,000; −€10,000 + €4,000 = −€6,000.","es":""},"common_error":{"fr":"","en":"Deducting the risk adjustment instead of adding it: it increases fulfilment cash flows.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"PV of outflows","es":""},"value":"110000","unit":"EUR"},{"label":{"fr":"","en":"Premiums received","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Risk adjustment","es":""},"value":"4000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Discounted net outflow","es":""},"answer":-10000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Fulfilment cash flows","es":""},"answer":-6000,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Discounted net outflow","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"PV of outflows","es":""},"value":110000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Premiums received","es":""},"value":120000,"unit":"EUR"}],"result":-10000,"unit":"EUR"}],"references":["REF.IFRS17.32"]}},{"prompt":{"fr":"","en":"What does a result of −€6,000 mean for group A?","es":""},"explanation":{"fr":"","en":"Discounted inflows exceed discounted outflows plus the risk adjustment: the group is expected to be profitable (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A loss to be recognised immediately","es":""},"correct":false,"feedback":{"fr":"","en":"A negative amount of fulfilment cash flows is a net inflow, not a loss (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"An expected net inflow: the group is expected to be profitable","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A group that is onerous at inception","es":""},"correct":false,"feedback":{"fr":"","en":"A group is onerous when the fulfilment cash flows are a net outflow, i.e. positive (IFRS 17).","es":""}}],"id":"p3","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000049","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.CSM_INITIAL"],"dimension":"CALCULATION","format":"CALCULATION","context":"LIFE","tested_point":"CSM_CALCULATION","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS17.000006","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000006","section_id":"numeric-csm"},"references":["IFRS 17 §38"],"exercise":{"prompt":{"fr":"","en":"A group of life contracts has a present value of outflows of €70,000, premiums received of €80,000 and a risk adjustment of €2,500 (case data, no acquisition cash flows). Calculate the fulfilment cash flows, the initial margin and the initial liability.","es":""},"explanation":{"fr":"","en":"Fulfilment cash flows = €70,000 − €80,000 + €2,500 = −€7,500; margin = €7,500; liability = €70,000 + €2,500 + €7,500 = €80,000, equal to premiums received (IFRS 17).","es":""},"common_error":{"fr":"","en":"Forgetting to add the margin to the liability: €72,500 instead of €80,000.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"PV of outflows","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"Premiums received","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Risk adjustment","es":""},"value":"2500","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Fulfilment cash flows","es":""},"answer":-7500,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Initial margin","es":""},"answer":7500,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Initial liability","es":""},"answer":80000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Fulfilment cash flows","es":""},"expression":"a - b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"PV of outflows","es":""},"value":70000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Premiums received","es":""},"value":80000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Risk adjustment","es":""},"value":2500,"unit":"EUR"}],"result":-7500,"unit":"EUR"},{"step":"s3","meaning":{"fr":"","en":"Initial liability","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"PV of outflows","es":""},"value":70000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Risk adjustment","es":""},"value":2500,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Initial margin","es":""},"value":7500,"unit":"EUR"}],"result":80000,"unit":"EUR"}],"references":["REF.IFRS17.38"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000050","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.CSM_INITIAL"],"dimension":"APPLICATION","format":"MATCHING","context":"LIFE","tested_point":"LIABILITY_COMPONENTS","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IFRS17.000006","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000006","section_id":"numeric-csm"},"references":["IFRS 17 §38"],"exercise":{"prompt":{"fr":"","en":"Match each component of the initial liability of a profitable group with its amount (data from the case above: outflows €70,000, premiums €80,000, adjustment €2,500).","es":""},"explanation":{"fr":"","en":"The liability is made of €70,000 of outflows, €2,500 of adjustment and €7,500 of margin, i.e. €80,000, equal to premiums received (IFRS 17). €77,500 would forget the margin.","es":""},"common_error":{"fr":"","en":"Forgetting the margin in the initial liability: the total must equal premiums received.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Present value of future outflows","es":""}},{"id":"l2","text":{"fr":"","en":"Adjustment for non-financial risk","es":""}},{"id":"l3","text":{"fr":"","en":"Contractual service margin","es":""}},{"id":"l4","text":{"fr":"","en":"Total initial liability","es":""}}],"right":[{"id":"r3","text":{"fr":"","en":"€7,500","es":""}},{"id":"r4","text":{"fr":"","en":"€80,000","es":""}},{"id":"r5","text":{"fr":"","en":"€77,500","es":""}},{"id":"r1","text":{"fr":"","en":"€70,000","es":""}},{"id":"r2","text":{"fr":"","en":"€2,500","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"},{"left":"l4","right":"r4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000051","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.CSM_INITIAL"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"NO_DAY_ONE_PROFIT","difficulty":"ADVANCED","estimated_time_s":70,"lesson_id":"LS.IFRS17.000006","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000006","section_id":"understand"},"references":["IFRS 17 §38"],"exercise":{"prompt":{"fr":"","en":"A profitable group receives €80,000 of premiums and its initial liability is €80,000. What is the effect of initial recognition on profit or loss?","es":""},"explanation":{"fr":"","en":"The liability equals the cash received: no income or expense arises from initial recognition (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A profit of €7,500, equal to the contractual service margin, recognised in insurance revenue","es":""},"correct":false,"feedback":{"fr":"","en":"The margin is not revenue: it is unearned profit, released to profit or loss as service is provided (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"A loss of €2,500, equal to the risk adjustment, recognised immediately","es":""},"correct":false,"feedback":{"fr":"","en":"The risk adjustment is part of the liability; it creates no loss at the inception of a profitable group (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"A profit of €10,000, the difference between premiums and discounted outflows","es":""},"correct":false,"feedback":{"fr":"","en":"The difference of €10,000 is split between the risk adjustment and the margin, and stays in the liability (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"Nil: the margin of €7,500 holds the expected profit back in the liability","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000052","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.ONEROUS_INITIAL"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MOTOR_INSURANCE","tested_point":"ONEROUS_TEST_CLASSIFICATION","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS17.000006","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000006","section_id":"rule-onerous"},"references":["IFRS 17 §47"],"exercise":{"prompt":{"fr":"","en":"For each group, indicate whether it is onerous at initial recognition, based on the sign of its fulfilment cash flows.","es":""},"explanation":{"fr":"","en":"A net outflow (positive) makes the group onerous, however small; a net inflow (negative) makes it profitable (IFRS 17).","es":""},"common_error":{"fr":"","en":"Judging a group with a small net outflow profitable: any net outflow, however small, makes it onerous.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ONER","text":{"fr":"","en":"Onerous group","es":""}},{"id":"PROF","text":{"fr":"","en":"Profitable group","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Fulfilment cash flows of €12,000 (net outflow)","es":""},"category":"ONER"},{"id":"i2","text":{"fr":"","en":"Fulfilment cash flows of −€3,000 (net inflow)","es":""},"category":"PROF"},{"id":"i3","text":{"fr":"","en":"Fulfilment cash flows of €500 (net outflow)","es":""},"category":"ONER"},{"id":"i4","text":{"fr":"","en":"Fulfilment cash flows of −€20,000 (net inflow)","es":""},"category":"PROF"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000053","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.ONEROUS_INITIAL"],"dimension":"CALCULATION","format":"CALCULATION","context":"MOTOR_INSURANCE","tested_point":"ONEROUS_CALCULATION","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS17.000006","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000006","section_id":"rule-onerous"},"references":["IFRS 17 §47"],"exercise":{"prompt":{"fr":"","en":"A group has a present value of outflows of €60,000, premiums received of €50,000 and a risk adjustment of €2,000 (case data). Calculate the fulfilment cash flows, the initial loss, the margin and the initial liability.","es":""},"explanation":{"fr":"","en":"Fulfilment cash flows = €60,000 − €50,000 + €2,000 = €12,000; loss = €12,000; margin = €0; liability = €60,000 + €2,000 = €62,000, i.e. premiums received plus the loss (IFRS 17).","es":""},"common_error":{"fr":"","en":"Spreading the loss over the coverage period instead of recognising it at once.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"PV of outflows","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Premiums received","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Risk adjustment","es":""},"value":"2000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Fulfilment cash flows","es":""},"answer":12000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Loss in profit or loss","es":""},"answer":12000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Margin","es":""},"answer":0,"tolerance":0,"unit":"EUR"},{"id":"s4","label":{"fr":"","en":"Initial liability","es":""},"answer":62000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Fulfilment cash flows","es":""},"expression":"a - b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"PV of outflows","es":""},"value":60000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Premiums received","es":""},"value":50000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Risk adjustment","es":""},"value":2000,"unit":"EUR"}],"result":12000,"unit":"EUR"},{"step":"s4","meaning":{"fr":"","en":"Initial liability","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"PV of outflows","es":""},"value":60000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Risk adjustment","es":""},"value":2000,"unit":"EUR"}],"result":62000,"unit":"EUR"}],"references":["REF.IFRS17.47"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000054","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.ONEROUS_INITIAL"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MOTOR_INSURANCE","tested_point":"ONEROUS_ENTRY","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IFRS17.000006","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000006","section_id":"entry-recognition"},"references":["IFRS 17 §47"],"exercise":{"prompt":{"fr":"","en":"Take the previous onerous group: premiums received €50,000, initial loss €12,000, liability €62,000. Post the initial recognition entry.","es":""},"explanation":{"fr":"","en":"Debit: cash €50,000 + loss €12,000 = €62,000; credit: liability €62,000. No margin is set up for an onerous group (IFRS 17).","es":""},"common_error":{"fr":"","en":"Crediting a margin account for the loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"loss","text":{"fr":"","en":"Loss on onerous group","es":""}},{"id":"liab","text":{"fr":"","en":"Insurance contract liability","es":""}},{"id":"csm","text":{"fr":"","en":"Contractual service margin","es":""}}],"lines":[{"id":"l1","account":"cash","side":"DEBIT","amount":50000,"given":["account","side"]},{"id":"l2","account":"loss","side":"DEBIT","amount":12000,"given":["account","side"]},{"id":"l3","account":"liab","side":"CREDIT","amount":62000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000055","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.ACQUISITION_CASH_FLOWS"],"dimension":"CALCULATION","format":"CALCULATION","context":"LIFE","tested_point":"CSM_WITH_ACQUISITION_COST","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS17.000006","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000006","section_id":"rule-acquisition"},"references":["IFRS 17 §28A","IFRS 17"],"exercise":{"prompt":{"fr":"","en":"The fulfilment cash flows of a group, before acquisition cash flows, are −€9,000 (net inflow); the acquisition cash flows paid, which are part of the fulfilment cash flows of the group, are €2,500 (case data). Calculate the initial margin.","es":""},"explanation":{"fr":"","en":"−€9,000 + €2,500 = −€6,500; margin = max(0; €6,500) = €6,500: acquisition cash flows reduce the margin by €2,500 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Adding the acquisition cash flows to the margin: €11,500.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fulfilment cash flows before acquisition cash flows","es":""},"value":"-9000","unit":"EUR"},{"label":{"fr":"","en":"Acquisition cash flows","es":""},"value":"2500","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Fulfilment cash flows including acquisition cash flows","es":""},"answer":-6500,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Initial margin","es":""},"answer":6500,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000056","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.ACQUISITION_CASH_FLOWS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"LIFE","tested_point":"ACQUISITION_ASSET_RULE","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IFRS17.000006","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000006","section_id":"rule-acquisition"},"references":["IFRS 17 §28A","IFRS 17"],"exercise":{"prompt":{"fr":"","en":"Corvin Vie pays commissions for contracts it expects to renew next year, in a group not yet recognised. What do the June 2020 amendments allow?","es":""},"explanation":{"fr":"","en":"The acquisition asset is recognised before the group to which the cash flows relate is recognised, then derecognised when the group is recognised (IFRS 17, 2020 amendments).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Expensing them when paid, since the group does not yet exist","es":""},"correct":false,"feedback":{"fr":"","en":"The 2020 amendments allow precisely for attributing them to future groups and recognising an asset (IFRS 17, 2020 amendments).","es":""}},{"id":"B","text":{"fr":"","en":"Recognising an asset for these acquisition cash flows until the group is recognised","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Adding them to the margin of the current group","es":""},"correct":false,"feedback":{"fr":"","en":"Acquisition cash flows reduce the margin; they do not increase it, and they relate to the future group (IFRS 17).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000057","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.ACQUISITION_CASH_FLOWS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"LIFE","tested_point":"ACQUISITION_MINI_CASE","difficulty":"EXPERT","estimated_time_s":170,"lesson_id":"LS.IFRS17.000006","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000006","section_id":"judgment"},"references":["IFRS 17 §28A","IFRS 17"],"exercise":{"prompt":{"fr":"","en":"Read the file then answer the two questions.","es":""},"explanation":{"fr":"","en":"The systematic allocation attaches €2,000 to the 2026 group, whose margin becomes €7,000, and €1,000 to an asset for the 2027 group (IFRS 17, 2020 amendments).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Corvin Vie has paid €3,000 of acquisition commissions. It allocates this amount systematically: €2,000 to the 2026 group (recognised the following month) and €1,000 to the group expected through renewal in 2027. The fulfilment cash flows of the 2026 group are −€9,000 before acquisition cash flows.","es":""},"exhibits":[{"title":{"fr":"","en":"Exhibit 1: allocation","es":""},"body":{"fr":"","en":"2026 group: €2,000. Expected 2027 group: €1,000. Total: €3,000.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Before the 2027 group is recognised, what does Corvin Vie do with the €1,000 share?","es":""},"explanation":{"fr":"","en":"Cash flows attributed to a future group give rise to an asset as long as that group is not recognised (IFRS 17, 2020 amendments).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recognises an asset, derecognised when the 2027 group is recognised","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It expenses it in 2026, for lack of a group to attach it to","es":""},"correct":false,"feedback":{"fr":"","en":"The 2020 amendments allow an asset as long as the group to which the cash flows relate is not recognised (IFRS 17, 2020 amendments).","es":""}},{"id":"C","text":{"fr":"","en":"It charges it to the 2026 group, the only group that exists at that date","es":""},"correct":false,"feedback":{"fr":"","en":"The systematic allocation attaches this share to the future group, not to the current one (IFRS 17).","es":""}}],"id":"p1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Calculate the initial margin of the 2026 group taking account of its share of acquisition cash flows.","es":""},"explanation":{"fr":"","en":"Fulfilment cash flows including the acquisition share: −€9,000 + €2,000 = −€7,000; margin = €7,000. Only the share allocated to the 2026 group reduces its margin.","es":""},"common_error":{"fr":"","en":"Ignoring allocated acquisition cash flows, or charging other groups' flows: only the share allocated to the group reduces its margin.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fulfilment cash flows of the 2026 group, before acquisition cash flows","es":""},"value":"-9000","unit":"EUR"},{"label":{"fr":"","en":"Acquisition cash flows allocated to the 2026 group","es":""},"value":"2000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Initial margin of the 2026 group","es":""},"answer":7000,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000058","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.LRC_LIC"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"PROPERTY","tested_point":"LRC_LIC_MATCHING","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS17.000007","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000007","section_id":"understand"},"references":["IFRS 17 §40"],"exercise":{"prompt":{"fr":"","en":"Match each description with the corresponding liability.","es":""},"explanation":{"fr":"","en":"The first liability relates to future service, the second to past events; the margin is neither, but it is part of the first (IFRS 17).","es":""},"common_error":{"fr":"","en":"Confusing the two liabilities: remaining coverage covers future service; incurred claims cover past events.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"What the insurer still owes for the coverage it has not yet provided","es":""}},{"id":"l2","text":{"fr":"","en":"What the insurer owes for events that have already occurred and are not settled","es":""}}],"right":[{"id":"r3","text":{"fr":"","en":"Contractual service margin","es":""}},{"id":"r1","text":{"fr":"","en":"Liability for remaining coverage","es":""}},{"id":"r2","text":{"fr":"","en":"Liability for incurred claims","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000059","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.LRC_LIC"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"PROPERTY","tested_point":"LRC_LIC_CLASSIFICATION","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IFRS17.000007","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000007","section_id":"rule-lrc-lic"},"references":["IFRS 17 §40"],"exercise":{"prompt":{"fr":"","en":"A storm has hit property insured by a group. Place each amount in the appropriate liability of the group.","es":""},"explanation":{"fr":"","en":"What relates to events that have already occurred (storm damage, expert fees) goes to incurred claims; what relates to coverage still to be provided goes to remaining coverage (IFRS 17).","es":""},"common_error":{"fr":"","en":"Putting claims expected next year among incurred claims: they relate to coverage still to be provided.","es":""},"format":"CLASSIFICATION","categories":[{"id":"LRC","text":{"fr":"","en":"Remaining coverage","es":""}},{"id":"LIC","text":{"fr":"","en":"Incurred claims","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Estimate of the storm damage, files opened, not paid","es":""},"category":"LIC"},{"id":"i2","text":{"fr":"","en":"Claims expected next year on the remaining coverage","es":""},"category":"LRC"},{"id":"i3","text":{"fr":"","en":"Risk adjustment relating to the coverage still to be provided","es":""},"category":"LRC"},{"id":"i4","text":{"fr":"","en":"Expert fees payable for the storm files","es":""},"category":"LIC"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000060","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.LRC_LIC"],"dimension":"ANALYSIS","format":"TRUE_FALSE","context":"PROPERTY","tested_point":"CARRYING_AMOUNT_TF","difficulty":"INTERMEDIATE","estimated_time_s":50,"lesson_id":"LS.IFRS17.000007","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000007","section_id":"rule-lrc-lic"},"references":["IFRS 17 §40"],"exercise":{"prompt":{"fr":"","en":"After settlement of a claim of €20,000 already recorded in the liability for incurred claims, the liability for remaining coverage also falls by €20,000.","es":""},"explanation":{"fr":"","en":"Settlement reduces the liability for incurred claims; the liability for remaining coverage falls with the coverage provided, not with payment of a claim that has already occurred (IFRS 17).","es":""},"common_error":{"fr":"","en":"Confusing the two liabilities at the time of settlement.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000061","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.CSM_ROLLFORWARD"],"dimension":"RULE_KNOWLEDGE","format":"ORDERING","context":"GENERIC","tested_point":"CSM_MOVEMENTS_ORDER","difficulty":"BEGINNER","estimated_time_s":70,"lesson_id":"LS.IFRS17.000007","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000007","section_id":"rule-rollforward"},"references":["IFRS 17 §44"],"exercise":{"prompt":{"fr":"","en":"Put in order the lines of the margin reconciliation of a group.","es":""},"explanation":{"fr":"","en":"One starts from the opening margin, adds new contracts, interest and revisions of future services, then deducts the release to reach the closing balance (IFRS 17).","es":""},"common_error":{"fr":"","en":"Deducting the release before adding interest and future-service revisions.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"Opening margin","es":""}},{"id":"s2","text":{"fr":"","en":"Effect of new contracts added to the group","es":""}},{"id":"s3","text":{"fr":"","en":"Interest at the group’s locked-in rate","es":""}},{"id":"s4","text":{"fr":"","en":"Changes in cash flows relating to future services","es":""}},{"id":"s5","text":{"fr":"","en":"Release for services provided during the period","es":""}},{"id":"s6","text":{"fr":"","en":"Closing margin","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000062","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.CSM_ROLLFORWARD"],"dimension":"CALCULATION","format":"CALCULATION","context":"LIFE","tested_point":"CSM_ACCRETION_CALC","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IFRS17.000007","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000007","section_id":"rule-rollforward"},"references":["IFRS 17 §44"],"exercise":{"prompt":{"fr":"","en":"Opening margin: €4,000. Locked-in rate of the group: 5% (case data). Market rates have since risen to 7%. Calculate the interest for the period on the opening margin, then the margin before release, with no other movement.","es":""},"explanation":{"fr":"","en":"Interest is calculated at the locked-in rate: €4,000 × 5% = €200, hence €4,200; the market rate of 7% plays no part (IFRS 17).","es":""},"common_error":{"fr":"","en":"Using the market rate of 7% (€280 of interest).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening margin","es":""},"value":"4000","unit":"EUR"},{"label":{"fr":"","en":"Locked-in rate","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Current market rate","es":""},"value":"7","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Interest for the period","es":""},"answer":200,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Margin before release","es":""},"answer":4200,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Interest for the period","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening margin","es":""},"value":4000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Locked-in rate","es":""},"value":5,"unit":"PERCENT"}],"result":200,"unit":"EUR"}],"references":["REF.IFRS17.44"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000063","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.CSM_ROLLFORWARD"],"dimension":"CALCULATION","format":"CALCULATION","context":"LIFE","tested_point":"CSM_FULL_ROLLFORWARD","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS17.000007","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000007","section_id":"numeric-rollforward"},"references":["IFRS 17 §44"],"exercise":{"prompt":{"fr":"","en":"Opening margin €10,000; new contracts €2,000; interest at the locked-in rate of 5% on the opening margin; favourable revision of future services €1,200; release of 20% of the margin before release (case data). Calculate the full reconciliation.","es":""},"explanation":{"fr":"","en":"Interest €500; before release €10,000 + €2,000 + €500 + €1,200 = €13,700; release €2,740; closing €10,960 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Applying the 20% release to the opening margin (€2,000) instead of the margin before release.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening margin","es":""},"value":"10000","unit":"EUR"},{"label":{"fr":"","en":"New contracts","es":""},"value":"2000","unit":"EUR"},{"label":{"fr":"","en":"Locked-in rate","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Favourable revision, future services","es":""},"value":"1200","unit":"EUR"},{"label":{"fr":"","en":"Release share","es":""},"value":"20","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Interest for the period","es":""},"answer":500,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Margin before release","es":""},"answer":13700,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Release for the period","es":""},"answer":2740,"tolerance":0,"unit":"EUR"},{"id":"s4","label":{"fr":"","en":"Closing margin","es":""},"answer":10960,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Margin before release","es":""},"expression":"a + b + c + d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening margin","es":""},"value":10000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"New contracts","es":""},"value":2000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Interest for the period","es":""},"value":500,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Favourable revision, future services","es":""},"value":1200,"unit":"EUR"}],"result":13700,"unit":"EUR"}],"references":["REF.IFRS17.44"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000064","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.CSM_ADJUSTMENTS"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"LIFE","tested_point":"ADJUSTMENT_TREATMENT","difficulty":"INTERMEDIATE","estimated_time_s":65,"lesson_id":"LS.IFRS17.000007","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000007","section_id":"rule-adjustments"},"references":["IFRS 17 §B96","IFRS 17 §44"],"exercise":{"prompt":{"fr":"","en":"The insurer revises downward its mortality assumptions for the next five years, which reduces expected deaths and therefore future outflows. What is the treatment?","es":""},"explanation":{"fr":"","en":"A revision of non-financial assumptions relating to coming years concerns future services: it adjusts the margin (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The revision is recognised immediately in profit or loss, because it is a gain","es":""},"correct":false,"feedback":{"fr":"","en":"A revision relating to future services adjusts the margin; it does not go to profit or loss (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"The revision is presented in insurance finance income, like a change of rate","es":""},"correct":false,"feedback":{"fr":"","en":"A revision of non-financial assumptions is not a rate effect: it adjusts the margin (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"The revision is ignored as long as the group is not onerous","es":""},"correct":false,"feedback":{"fr":"","en":"Cash flow estimates are current: every revision is taken into account at the reporting date (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"The change adjusts the contractual service margin","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000065","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.CSM_ADJUSTMENTS"],"dimension":"ANALYSIS","format":"CLASSIFICATION","context":"GENERIC","tested_point":"ADJUSTMENT_CLASSIFICATION","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS17.000007","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000007","section_id":"rule-adjustments"},"references":["IFRS 17 §B96","IFRS 17 §44"],"exercise":{"prompt":{"fr":"","en":"Classify each change by treatment: adjustment of the margin, profit or loss for the period, or insurance finance income or expenses.","es":""},"explanation":{"fr":"","en":"Revisions of non-financial assumptions about the future adjust the margin; the claims variance of the period goes to profit or loss; the change in rate is financial (IFRS 17).","es":""},"common_error":{"fr":"","en":"Charging the claims variance of the period to the margin.","es":""},"format":"CLASSIFICATION","categories":[{"id":"CSM","text":{"fr":"","en":"Margin adjustment","es":""}},{"id":"PL","text":{"fr":"","en":"Profit or loss for the period","es":""}},{"id":"FIN","text":{"fr":"","en":"Finance income or expenses","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Rise in expected handling costs for the years to come","es":""},"category":"CSM"},{"id":"i2","text":{"fr":"","en":"Claims for the year €700 above expectation","es":""},"category":"PL"},{"id":"i3","text":{"fr":"","en":"Fall in the market discount rate","es":""},"category":"FIN"},{"id":"i4","text":{"fr":"","en":"Downward revision of the expected lapse rate for future years","es":""},"category":"CSM"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000066","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.CSM_ADJUSTMENTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"PROPERTY","tested_point":"ADJUSTMENT_CALCULATION","difficulty":"ADVANCED","estimated_time_s":140,"lesson_id":"LS.IFRS17.000007","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000007","section_id":"rule-adjustments"},"references":["IFRS 17 §B96","IFRS 17 §44"],"exercise":{"prompt":{"fr":"","en":"During the period: (a) assumptions relating to future services are revised favourably, reducing future cash flows by €1,500; (b) claims for the period exceed expectation by €700; (c) the discount rate falls, increasing the liability by €400 (teaching assumption: all finance income and expenses go to profit or loss). Determine the effect of each item on the margin, the insurance service result and the finance result.","es":""},"explanation":{"fr":"","en":"Each change goes where the service it relates to sits: (a) relates to future services, so the €1,500 fall in cash flows raises the margin by +€1,500; (b) relates to the past period, so the €700 excess is an expense in the insurance service result (−€700); (c) comes from the discount rate, so the €400 liability increase is a finance expense (−€400) (IFRS 17, paras. 44 and B96).","es":""},"common_error":{"fr":"","en":"Running all three changes through the margin.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Favourable revision of future services","es":""},"value":"1500","unit":"EUR"},{"label":{"fr":"","en":"Excess of claims for the period","es":""},"value":"700","unit":"EUR"},{"label":{"fr":"","en":"Effect of the fall in rate","es":""},"value":"400","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Change in the margin","es":""},"answer":1500,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Effect on the insurance service result (negative = expense)","es":""},"answer":-700,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Effect on the finance result (negative = expense)","es":""},"answer":-400,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000067","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.COVERAGE_UNITS_RELEASE"],"dimension":"CALCULATION","format":"CALCULATION","context":"LIFE","tested_point":"RELEASE_SHARE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS17.000008","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000008","section_id":"rule-release"},"references":["IFRS 17 §B119"],"exercise":{"prompt":{"fr":"","en":"Margin before release: €12,000. Coverage units provided in the period: 200; units expected in the future: 300 (case data). Calculate the share of the period, the release and the closing margin.","es":""},"explanation":{"fr":"","en":"200 ÷ (200 + 300) = 40%; €12,000 × 40% = €4,800; €12,000 − €4,800 = €7,200 (IFRS 17, para. B119).","es":""},"common_error":{"fr":"","en":"Dividing 200 by 300 only (the future units): 67%.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Margin before release","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Units of the period","es":""},"value":"200","unit":"UNITS"},{"label":{"fr":"","en":"Expected future units","es":""},"value":"300","unit":"UNITS"}],"steps":[{"id":"s1","label":{"fr":"","en":"Share of the period","es":""},"answer":40,"tolerance":0,"unit":"PERCENT"},{"id":"s2","label":{"fr":"","en":"Release for the period","es":""},"answer":4800,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Closing margin","es":""},"answer":7200,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Share of the period","es":""},"expression":"a / (a + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Units of the period","es":""},"value":200,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Expected future units","es":""},"value":300,"unit":"UNITS"}],"result":40,"unit":"PERCENT"},{"step":"s2","meaning":{"fr":"","en":"Release for the period","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Margin before release","es":""},"value":12000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of the period","es":""},"value":40,"unit":"PERCENT"}],"result":4800,"unit":"EUR"},{"step":"s3","meaning":{"fr":"","en":"Closing margin","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Margin before release","es":""},"value":12000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Release for the period","es":""},"value":4800,"unit":"EUR"}],"result":7200,"unit":"EUR"}],"references":["REF.IFRS17.B119"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000068","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.COVERAGE_UNITS_RELEASE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"LIFE","tested_point":"RELEASE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS17.000008","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000008","section_id":"entry-release"},"references":["IFRS 17 §B119"],"exercise":{"prompt":{"fr":"","en":"The release of the margin of a group for the period is €4,800. Post the release entry.","es":""},"explanation":{"fr":"","en":"The liability falls by the margin released (€4,800) and insurance revenue rises by the same amount (IFRS 17, para. B119).","es":""},"common_error":{"fr":"","en":"Crediting cash: the release involves no cash flow.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"liab","text":{"fr":"","en":"Insurance contract liability","es":""}},{"id":"rev","text":{"fr":"","en":"Insurance revenue","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"fin","text":{"fr":"","en":"Insurance finance expense","es":""}}],"lines":[{"id":"l1","account":"liab","side":"DEBIT","amount":4800,"given":["account","side"]},{"id":"l2","account":"rev","side":"CREDIT","amount":4800,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000069","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.COVERAGE_UNITS_RELEASE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"LIFE","tested_point":"RELEASE_UNITS_PRO_RATA","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IFRS17.000008","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000008","section_id":"numeric-release"},"references":["IFRS 17 §B119"],"exercise":{"prompt":{"fr":"","en":"Three years of coverage: 1,000 contracts in force in year 1 (period), 1,000 in year 2 and 500 in year 3 (expected units). The margin before release is €9,000. What is the release for year 1?","es":""},"explanation":{"fr":"","en":"Share = 1,000 ÷ (1,000 + 1,000 + 500) = 40%; release = €9,000 × 40% = €3,600 (IFRS 17, para. B119).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€3,000","es":""},"correct":false,"feedback":{"fr":"","en":"One third assumes constant units; here the number of contracts falls, and the share of year 1 is 1,000 out of 2,500 (IFRS 17, para. B119).","es":""}},{"id":"B","text":{"fr":"","en":"€3,600","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"€4,500","es":""},"correct":false,"feedback":{"fr":"","en":"Half would result from 1,000 units out of 2,000, forgetting the 500 units of year 3.","es":""}},{"id":"D","text":{"fr":"","en":"€9,000","es":""},"correct":false,"feedback":{"fr":"","en":"The margin is allocated across all units, including those of future years (IFRS 17, para. B119).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS17.000070","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.COVERAGE_UNITS_RELEASE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"LIFE","tested_point":"COVERAGE_UNIT_JUDGMENT","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IFRS17.000008","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000008","section_id":"judgment"},"references":["IFRS 17 §B119"],"exercise":{"prompt":{"fr":"","en":"Which statement about the choice of the coverage unit is correct?","es":""},"explanation":{"fr":"","en":"The number of units reflects the quantity of benefits and the expected duration of coverage; the choice of unit is a judgment and future units are re-estimated (IFRS 17, para. B119).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is the number of days elapsed, because the cover is provided over time","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not set a single unit: the number of days would ignore the quantity of benefits (IFRS 17, para. B119).","es":""}},{"id":"B","text":{"fr":"","en":"It is the premium collected in the period, because it measures the service rendered","es":""},"correct":false,"feedback":{"fr":"","en":"The premium is not in itself a measure of benefits provided; the standard speaks of quantity of benefits and duration (IFRS 17, para. B119).","es":""}},{"id":"C","text":{"fr":"","en":"The unit must reflect the quantity of benefits and expected duration","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It is set at initial recognition and is not revised afterwards","es":""},"correct":false,"feedback":{"fr":"","en":"Future units are re-estimated at each reporting date to reflect the coverage expected (IFRS 17, para. B119).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000071","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.ONEROUS_SUBSEQUENT"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"LIFE","tested_point":"LOSS_COMPONENT_CREATION","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IFRS17.000008","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000008","section_id":"rule-loss-component"},"references":["IFRS 17 §48","IFRS 17 §49"],"exercise":{"prompt":{"fr":"","en":"A remaining margin of €1,000 faces an unfavourable change of €4,000 in cash flows relating to future services. What is the treatment?","es":""},"explanation":{"fr":"","en":"The change absorbs the margin first (€1,000); the excess (€4,000 − €1,000 = €3,000) is a loss and feeds the loss component (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The margin becomes negative by €3,000 and will be released later","es":""},"correct":false,"feedback":{"fr":"","en":"The margin cannot be negative: the excess is an immediate loss (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"The loss of €4,000 is recognised in full and the margin of €1,000 is kept","es":""},"correct":false,"feedback":{"fr":"","en":"The margin is absorbed first: only the part that exceeds it is a loss (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"Nothing is recognised until the group has paid the corresponding claims","es":""},"correct":false,"feedback":{"fr":"","en":"The expected loss is recognised as soon as the group becomes onerous (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"The margin is brought to zero and the excess of €3,000 is a loss in profit or loss","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000072","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.ONEROUS_SUBSEQUENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"LIFE","tested_point":"LOSS_COMPONENT_CALC","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS17.000008","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000008","section_id":"rule-loss-component"},"references":["IFRS 17 §48","IFRS 17 §49"],"exercise":{"prompt":{"fr":"","en":"Remaining margin: €2,500. Unfavourable change in cash flows relating to future services: €6,000 (case data). Calculate the margin absorbed, the margin remaining after the change and the loss recognised in profit or loss.","es":""},"explanation":{"fr":"","en":"Margin absorbed = min(€2,500; €6,000) = €2,500; remaining margin = €0; loss = €6,000 − €2,500 = €3,500 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Recognising the loss of €6,000 and keeping the margin.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Remaining margin","es":""},"value":"2500","unit":"EUR"},{"label":{"fr":"","en":"Unfavourable change","es":""},"value":"6000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Margin absorbed","es":""},"answer":2500,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Margin after the change","es":""},"answer":0,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Loss in profit or loss","es":""},"answer":3500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s3","meaning":{"fr":"","en":"Loss in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Unfavourable change","es":""},"value":6000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Remaining margin","es":""},"value":2500,"unit":"EUR"}],"result":3500,"unit":"EUR"}],"references":["REF.IFRS17.48","REF.IFRS17.49"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000073","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.ONEROUS_SUBSEQUENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"LIFE","tested_point":"LOSS_COMPONENT_REVERSAL","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS17.000008","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000008","section_id":"rule-loss-component"},"references":["IFRS 17 §48","IFRS 17 §49"],"exercise":{"prompt":{"fr":"","en":"The balance of the loss component is €3,000. A favourable change in cash flows relating to future services of €4,500 occurs (case data). Calculate the reversal of the loss component and the margin rebuilt.","es":""},"explanation":{"fr":"","en":"Reversal = min(€3,000; €4,500) = €3,000; margin rebuilt = €4,500 − €3,000 = €1,500 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Rebuilding the margin of €4,500 first without reversing the loss component.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Loss component","es":""},"value":"3000","unit":"EUR"},{"label":{"fr":"","en":"Favourable change","es":""},"value":"4500","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Reversal of the loss component (in profit or loss)","es":""},"answer":3000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Margin rebuilt","es":""},"answer":1500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Margin rebuilt","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Favourable change","es":""},"value":4500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Loss component","es":""},"value":3000,"unit":"EUR"}],"result":1500,"unit":"EUR"}],"references":["REF.IFRS17.48","REF.IFRS17.49"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000074","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.ONEROUS_SUBSEQUENT"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"LIFE","tested_point":"LOSS_COMPONENT_MINI_CASE","difficulty":"EXPERT","estimated_time_s":190,"lesson_id":"LS.IFRS17.000008","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000008","section_id":"rule-loss-component"},"references":["IFRS 17 §48","IFRS 17 §49"],"exercise":{"prompt":{"fr":"","en":"Read the file then answer the three questions.","es":""},"explanation":{"fr":"","en":"The loss of year 2 (€3,000) is fully reversed in year 3; the margin restarts at €1,000 (IFRS 17).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Group E of Assurances Navarre has a margin of €2,000 at the end of year 1. During year 2, an unfavourable revision of future services of €5,000 is recognised; at the end of year 3, a favourable revision of €4,000 occurs. No other change or release is considered (case conventions).","es":""},"exhibits":[{"title":{"fr":"","en":"Exhibit 1: revisions","es":""},"body":{"fr":"","en":"Year 2: unfavourable change of €5,000. Year 3: favourable change of €4,000.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Calculate the loss recognised in profit or loss in year 2.","es":""},"explanation":{"fr":"","en":"€5,000 − €2,000 = €3,000; the margin is absorbed and falls to zero.","es":""},"common_error":{"fr":"","en":"Taking the whole adverse change to profit or loss: the margin absorbs it first; only the excess is a loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Margin","es":""},"value":"2000","unit":"EUR"},{"label":{"fr":"","en":"Unfavourable change","es":""},"value":"5000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Loss in profit or loss, year 2","es":""},"answer":3000,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Loss in profit or loss, year 2","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Unfavourable change","es":""},"value":5000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Margin","es":""},"value":2000,"unit":"EUR"}],"result":3000,"unit":"EUR"}],"references":["REF.IFRS17.48","REF.IFRS17.49"]}},{"prompt":{"fr":"","en":"Calculate, in year 3, the reversal of the loss component and the margin rebuilt.","es":""},"explanation":{"fr":"","en":"min(€3,000; €4,000) = €3,000 reversed as income; €4,000 − €3,000 = €1,000 rebuild the margin.","es":""},"common_error":{"fr":"","en":"Rebuilding the margin with the whole favourable change: the loss component is reversed first.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Loss component","es":""},"value":"3000","unit":"EUR"},{"label":{"fr":"","en":"Favourable change","es":""},"value":"4000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Reversal of the loss component","es":""},"answer":3000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Margin rebuilt","es":""},"answer":1000,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"s2","meaning":{"fr":"","en":"Margin rebuilt","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Favourable change","es":""},"value":4000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Loss component","es":""},"value":3000,"unit":"EUR"}],"result":1000,"unit":"EUR"}],"references":["REF.IFRS17.48","REF.IFRS17.49"]}},{"prompt":{"fr":"","en":"In year 3, the whole of the favourable change of €4,000 rebuilds the margin.","es":""},"explanation":{"fr":"","en":"The loss component is reversed first; only the excess of €1,000 rebuilds the margin (IFRS 17).","es":""},"common_error":{"fr":"","en":"Ignoring the existing loss component: the favourable change reverses it first.","es":""},"format":"TRUE_FALSE","answer":false,"id":"p3","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000075","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PAA.ELIGIBILITY"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"PAA_ELIGIBILITY_CLASSIFICATION","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IFRS17.000009","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000009","section_id":"rule-eligibility"},"references":["IFRS 17 §53"],"exercise":{"prompt":{"fr":"","en":"Case data for each group. Classify: eligible for the premium allocation approach or not.","es":""},"explanation":{"fr":"","en":"Coverage of one year or less is enough; beyond that, the expected liability must not differ significantly from that of the general model, which fails in case of strong variability (IFRS 17, para. 53 for the two conditions; IFRS 17 for the variability).","es":""},"common_error":{"fr":"","en":"Excluding a contract longer than one year when its expected liability is close to the general model's: the conditions are alternatives.","es":""},"format":"CLASSIFICATION","categories":[{"id":"YES","text":{"fr":"","en":"Eligible","es":""}},{"id":"NO","text":{"fr":"","en":"Not eligible","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Travel insurance: each contract covers 3 weeks","es":""},"category":"YES"},{"id":"i2","text":{"fr":"","en":"Home insurance: each contract covers 12 months","es":""},"category":"YES"},{"id":"i3","text":{"fr":"","en":"Two-year protection for which the entity reasonably expects the liability to be close to that of the general model","es":""},"category":"YES"},{"id":"i4","text":{"fr":"","en":"Five-year protection with strong variability of cash flows expected before claims","es":""},"category":"NO"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000076","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PAA.ELIGIBILITY"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"PAA_ELIGIBILITY_CONDITIONS_TF","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS17.000009","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000009","section_id":"rule-eligibility"},"references":["IFRS 17 §53"],"exercise":{"prompt":{"fr":"","en":"A group of 18-month contracts for which the entity expects the liability for remaining coverage to be close to that of the general model may use the premium allocation approach.","es":""},"explanation":{"fr":"","en":"The first condition (liability not significantly different) is enough, even if coverage exceeds one year (IFRS 17, para. 53).","es":""},"common_error":{"fr":"","en":"Reserving the approach for coverage of one year or less: the liability-close-to-general-model condition also suffices.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000077","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PAA.ELIGIBILITY"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"PROPERTY","tested_point":"PAA_ELIGIBILITY_VARIABILITY","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IFRS17.000009","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000009","section_id":"judgment"},"references":["IFRS 17 §53"],"exercise":{"prompt":{"fr":"","en":"Group Delta has 3-year contracts. The entity’s scenarios show strong variability of cash flows before claims are incurred. May it use the premium allocation approach?","es":""},"explanation":{"fr":"","en":"Condition 2 fails (3-year coverage) and condition 1 fails (strong variability expected): the group must apply the general model (IFRS 17, para. 53 for the conditions; IFRS 17 for the variability).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: the first condition is enough as soon as the entity asserts it","es":""},"correct":false,"feedback":{"fr":"","en":"The expectation must be reasonable in light of the facts; strong variability contradicts it (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"Yes: the approach applies to all property and casualty groups","es":""},"correct":false,"feedback":{"fr":"","en":"Eligibility depends on the conditions of the group, not on the line of business (IFRS 17, para. 53).","es":""}},{"id":"C","text":{"fr":"","en":"No: the approach is reserved for annual contracts with no exception","es":""},"correct":false,"feedback":{"fr":"","en":"Contracts of more than one year may be eligible through the first condition; here it fails for another reason (IFRS 17, para. 53).","es":""}},{"id":"D","text":{"fr":"","en":"No: coverage over one year and strong variability of the flows","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000078","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PAA.MEASUREMENT"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"PROPERTY","tested_point":"PAA_MEASUREMENT_BLANKS","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS17.000009","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000009","section_id":"rule-measurement"},"references":["IFRS 17 §55","IFRS 17 §57"],"exercise":{"prompt":{"fr":"","en":"Complete the logic of measurement under the premium allocation approach.","es":""},"explanation":{"fr":"","en":"Insurance revenue for the period comes out of the liability: the liability falls (IFRS 17).","es":""},"common_error":{"fr":"","en":"Increasing the liability by the period's revenue: recognised revenue comes out of the liability, which decreases.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"In each period, the liability for remaining coverage is {{a}} by the amount recognised as insurance {{b}} for the coverage provided.","es":""},"blanks":[{"id":"a","mode":"CHOICE","choices":[{"id":"DIM","text":{"fr":"","en":"reduced","es":""}},{"id":"AUG","text":{"fr":"","en":"increased","es":""}}],"answer":"DIM"},{"id":"b","mode":"CHOICE","choices":[{"id":"PRO","text":{"fr":"","en":"revenue","es":""}},{"id":"CHA","text":{"fr":"","en":"expenses","es":""}}],"answer":"PRO"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000079","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PAA.MEASUREMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"PROPERTY","tested_point":"PAA_REVENUE_PRORATA","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS17.000009","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000009","section_id":"numeric-paa"},"references":["IFRS 17 §55","IFRS 17 §57"],"exercise":{"prompt":{"fr":"","en":"An annual policy has a premium of €3,600 received at the start, 12 months of coverage allocated pro rata over time (case convention). Calculate the insurance revenue after 5 months and the balance of the liability for remaining coverage (no acquisition cash flows).","es":""},"explanation":{"fr":"","en":"€3,600 × 5 ÷ 12 = €1,500; liability = €3,600 − €1,500 = €2,100 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Not deducting revenue from the liability: liability of €3,600.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Premium","es":""},"value":"3600","unit":"EUR"},{"label":{"fr":"","en":"Coverage period","es":""},"value":"12","unit":"MONTHS"},{"label":{"fr":"","en":"Months elapsed","es":""},"value":"5","unit":"MONTHS"}],"steps":[{"id":"s1","label":{"fr":"","en":"Insurance revenue for 5 months","es":""},"answer":1500,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Liability for remaining coverage","es":""},"answer":2100,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Insurance revenue for 5 months","es":""},"expression":"a * b / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Premium","es":""},"value":3600,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Months elapsed","es":""},"value":5,"unit":"MONTHS"},{"symbol":"c","meaning":{"fr":"","en":"Coverage period","es":""},"value":12,"unit":"MONTHS"}],"result":1500,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Liability for remaining coverage","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Premium","es":""},"value":3600,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Insurance revenue for 5 months","es":""},"value":1500,"unit":"EUR"}],"result":2100,"unit":"EUR"}],"references":["REF.IFRS17.55","REF.IFRS17.57"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000080","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PAA.MEASUREMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"PROPERTY","tested_point":"PAA_LIABILITY_ROLLFORWARD","difficulty":"ADVANCED","estimated_time_s":130,"lesson_id":"LS.IFRS17.000009","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000009","section_id":"numeric-paa"},"references":["IFRS 17 §55","IFRS 17 §57"],"exercise":{"prompt":{"fr":"","en":"Premium of €2,400 received, acquisition cash flows of €300 deducted from the liability, 12 months of coverage allocated pro rata over time (case conventions). Calculate the initial liability, the insurance revenue and the acquisition expense after 3 months, then the closing liability.","es":""},"explanation":{"fr":"","en":"Initial: €2,400 − €300 = €2,100; revenue: €600; expense: €75; closing: €2,100 + €75 − €600 = €1,575 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Forgetting to add back the share of acquisition cash flows expensed (€75).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Premium received","es":""},"value":"2400","unit":"EUR"},{"label":{"fr":"","en":"Acquisition cash flows","es":""},"value":"300","unit":"EUR"},{"label":{"fr":"","en":"Months elapsed out of 12","es":""},"value":"3","unit":"MONTHS"}],"steps":[{"id":"s1","label":{"fr":"","en":"Initial liability","es":""},"answer":2100,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Insurance revenue for 3 months","es":""},"answer":600,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Acquisition expense for 3 months","es":""},"answer":75,"tolerance":0,"unit":"EUR"},{"id":"s4","label":{"fr":"","en":"Closing liability","es":""},"answer":1575,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Initial liability","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Premium received","es":""},"value":2400,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Acquisition cash flows","es":""},"value":300,"unit":"EUR"}],"result":2100,"unit":"EUR"},{"step":"s4","meaning":{"fr":"","en":"Closing liability","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Initial liability","es":""},"value":2100,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Acquisition expense for 3 months","es":""},"value":75,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Insurance revenue for 3 months","es":""},"value":600,"unit":"EUR"}],"result":1575,"unit":"EUR"}],"references":["REF.IFRS17.55","REF.IFRS17.57"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000081","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PAA.MEASUREMENT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"PROPERTY","tested_point":"PAA_ENTRY_PERIOD","difficulty":"ADVANCED","estimated_time_s":130,"lesson_id":"LS.IFRS17.000009","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000009","section_id":"entry-paa"},"references":["IFRS 17 §55","IFRS 17 §57"],"exercise":{"prompt":{"fr":"","en":"Take the previous policy after 3 months: insurance revenue of €600 and the share of acquisition cash flows of €75 expensed (the liability is shown in a single account). Post the entries for the period.","es":""},"explanation":{"fr":"","en":"Revenue comes out of the liability (€600); the share of acquisition cash flows expensed (€75) goes back into it. Debits: €600 + €75 = €675; credits: €600 + €75 = €675 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Crediting cash instead of the liability for the acquisition expense.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"liab","text":{"fr":"","en":"Liability for remaining coverage","es":""}},{"id":"rev","text":{"fr":"","en":"Insurance revenue","es":""}},{"id":"exp","text":{"fr":"","en":"Insurance service expenses","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"liab","side":"DEBIT","amount":600,"given":["account","side"]},{"id":"l2","account":"rev","side":"CREDIT","amount":600,"given":["account","side"]},{"id":"l3","account":"exp","side":"DEBIT","amount":75,"given":["account","side"]},{"id":"l4","account":"liab","side":"CREDIT","amount":75,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000082","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PAA.MEASUREMENT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"PROPERTY","tested_point":"PAA_ONEROUS_TEST","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS17.000009","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000009","section_id":"rule-measurement"},"references":["IFRS 17 §55","IFRS 17 §57"],"exercise":{"prompt":{"fr":"","en":"During the year, facts indicate that group Delta, measured under the premium allocation approach, is onerous: its liability for remaining coverage is €10,000 and its fulfilment cash flows relating to remaining coverage are €12,500. What does the entity do?","es":""},"explanation":{"fr":"","en":"Liability €10,000 below fulfilment cash flows €12,500: the difference of €2,500 is recognised as a loss and the liability is brought to €12,500 (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It brings the liability to €12,500 and recognises the difference of €2,500 as a loss","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It leaves the liability at €10,000 until the end of coverage","es":""},"correct":false,"feedback":{"fr":"","en":"As soon as facts indicate an onerous group, the liability is reconciled to the fulfilment cash flows (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"It spreads the loss of €2,500 over the rest of the coverage","es":""},"correct":false,"feedback":{"fr":"","en":"The expected loss is recognised immediately, not spread (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"It moves the whole group to the general model to calculate a negative margin","es":""},"correct":false,"feedback":{"fr":"","en":"The simplified approach remains applicable; the onerous test corrects the liability without a negative margin (IFRS 17).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000083","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PAA.ACQUISITION_CASH_FLOWS"],"dimension":"CALCULATION","format":"CALCULATION","context":"PROPERTY","tested_point":"ACQUISITION_OPTION_DIFFERENCE","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS17.000009","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000009","section_id":"rule-acquisition"},"references":["IFRS 17 §59"],"exercise":{"prompt":{"fr":"","en":"Premium of €3,000 received; acquisition cash flows of €450 paid the same day. Compare the initial liability for remaining coverage if the entity deducts acquisition cash flows or expenses them, and the difference.","es":""},"explanation":{"fr":"","en":"Deducted: €3,000 − €450 = €2,550; expensed: €3,000; the difference equals the acquisition cash flows, i.e. €450 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Subtracting acquisition cash flows also in the case of expensing.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Premium","es":""},"value":"3000","unit":"EUR"},{"label":{"fr":"","en":"Acquisition cash flows","es":""},"value":"450","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Initial liability, cash flows deducted","es":""},"answer":2550,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Initial liability, cash flows expensed","es":""},"answer":3000,"tolerance":0,"unit":"EUR"},{"id":"s3","label":{"fr":"","en":"Difference in liability","es":""},"answer":450,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Initial liability, cash flows deducted","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Premium","es":""},"value":3000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Acquisition cash flows","es":""},"value":450,"unit":"EUR"}],"result":2550,"unit":"EUR"}],"references":["REF.IFRS17.59"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000084","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PAA.ACQUISITION_CASH_FLOWS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"ACQUISITION_OPTION_ELIGIBILITY","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IFRS17.000009","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000009","section_id":"rule-acquisition"},"references":["IFRS 17 §59"],"exercise":{"prompt":{"fr":"","en":"For each group, indicate whether the entity may expense acquisition cash flows as incurred.","es":""},"explanation":{"fr":"","en":"The option requires the coverage period of each contract in the group to be one year or less: a single longer contract, or 18-month coverage, closes it (IFRS 17).","es":""},"common_error":{"fr":"","en":"Opening the option because the group qualifies for the approach: it requires coverage of one year or less for each contract.","es":""},"format":"CLASSIFICATION","categories":[{"id":"YES","text":{"fr":"","en":"Option available","es":""}},{"id":"NO","text":{"fr":"","en":"Option not available","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Each contract in the group covers 12 months","es":""},"category":"YES"},{"id":"i2","text":{"fr":"","en":"Each contract in the group covers 6 months","es":""},"category":"YES"},{"id":"i3","text":{"fr":"","en":"The group includes 12-month contracts and one 24-month contract","es":""},"category":"NO"},{"id":"i4","text":{"fr":"","en":"Each contract in the group covers 18 months, eligibility resting on the first condition","es":""},"category":"NO"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000085","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PAA.ACQUISITION_CASH_FLOWS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"PROPERTY","tested_point":"ACQUISITION_EXPENSE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IFRS17.000009","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000009","section_id":"entry-paa"},"references":["IFRS 17 §59"],"exercise":{"prompt":{"fr":"","en":"The entity chooses to expense acquisition cash flows of €450 paid in cash on writing a group of annual contracts. Post the payment entry.","es":""},"explanation":{"fr":"","en":"Expensing as incurred: the debit goes to expenses, the credit to cash; the liability is not affected (IFRS 17).","es":""},"common_error":{"fr":"","en":"Debiting the liability, as if the cash flows were deducted.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Insurance service expenses","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"liab","text":{"fr":"","en":"Liability for remaining coverage","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":450,"given":["account","side"]},{"id":"l2","account":"cash","side":"CREDIT","amount":450,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000086","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.VFA.DIRECT_PARTICIPATION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"LIFE","tested_point":"VFA_CRITERIA_COUNT","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS17.000010","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000010","section_id":"rule-criteria"},"references":["IFRS 17 §B101"],"exercise":{"prompt":{"fr":"","en":"A contract is a contract with direct participation features only if all three criteria are met: identified underlying pool, substantial share of returns, substantial proportion of changes.","es":""},"explanation":{"fr":"","en":"The three criteria are cumulative (IFRS 17, para. B101).","es":""},"common_error":{"fr":"","en":"Settling for one or two criteria: all three are cumulative.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000087","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.VFA.DIRECT_PARTICIPATION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"LIFE","tested_point":"VFA_CONTRACT_CLASSIFICATION","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IFRS17.000010","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000010","section_id":"example"},"references":["IFRS 17 §B101"],"exercise":{"prompt":{"fr":"","en":"Classify each contract according to whether it falls under direct participation or not, based on its terms (case data).","es":""},"explanation":{"fr":"","en":"A fund or portfolio named in the terms, most of whose return the policyholder receives, characterises direct participation; a fixed rate or discretionary participation without identified items does not (IFRS 17, para. B101).","es":""},"common_error":{"fr":"","en":"Seeing direct participation in a discretionary participation with no identified underlying items.","es":""},"format":"CLASSIFICATION","categories":[{"id":"DP","text":{"fr":"","en":"Direct participation","es":""}},{"id":"NO","text":{"fr":"","en":"No direct participation","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Unit-linked: contract value equal to that of a fund named in the terms, fees charged by the insurer","es":""},"category":"DP"},{"id":"i2","text":{"fr":"","en":"Fixed rate of 2% a year guaranteed for the whole term, unrelated to a fund","es":""},"category":"NO"},{"id":"i3","text":{"fr":"","en":"The policyholder receives 90% of the return of a bond portfolio named in the contract","es":""},"category":"DP"},{"id":"i4","text":{"fr":"","en":"Discretionary participation set each year by the insurer, with no reference to identified items","es":""},"category":"NO"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000088","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.VFA.DIRECT_PARTICIPATION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"LIFE","tested_point":"VFA_CRITERIA_APPLICATION","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IFRS17.000010","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000010","section_id":"rule-criteria"},"references":["IFRS 17 §B101"],"exercise":{"prompt":{"fr":"","en":"Prévoyance Altis issues a contract whose terms name a bond fund; the policyholder receives the fund’s return net of 1% in fees, and the amount paid at maturity varies with the value of the fund. Which conclusion is correct?","es":""},"explanation":{"fr":"","en":"A clearly identified fund, return net of fees paid to the policyholder, amounts aligned with the value of the fund: the three criteria are met (IFRS 17, para. B101).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Criterion 3 is not met, because a bond fund is less volatile than an equity fund","es":""},"correct":false,"feedback":{"fr":"","en":"Volatility is not the criterion; what counts is that the amounts paid vary with the fair value of the items (IFRS 17, para. B101).","es":""}},{"id":"B","text":{"fr":"","en":"Criterion 1 is not met, because the insurer charges fees","es":""},"correct":false,"feedback":{"fr":"","en":"Fees are precisely part of the mechanism: the fund is clearly identified, so criterion 1 is met (IFRS 17, para. B101).","es":""}},{"id":"C","text":{"fr":"","en":"The three criteria are met: the contract has direct participation features","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The contract is excluded from direct participation because its term is under ten years","es":""},"correct":false,"feedback":{"fr":"","en":"No minimum term is required (IFRS 17, para. B101).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000089","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.VFA.FEE_MEASUREMENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"LIFE","tested_point":"VFA_MARGIN_ADJUSTMENT_TF","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IFRS17.000010","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000010","section_id":"rule-fee"},"references":["IFRS 17 §45","IFRS 17 §B104"],"exercise":{"prompt":{"fr":"","en":"For a contract with direct participation features, the change in the entity’s share of the fair value of the underlying items adjusts the contractual service margin.","es":""},"explanation":{"fr":"","en":"This is the particularity of the variable fee approach, compared with the general model (IFRS 17).","es":""},"common_error":{"fr":"","en":"Recognising this change in profit or loss as under the general model: under the variable fee approach, it adjusts the margin.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000090","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.VFA.FEE_MEASUREMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"LIFE","tested_point":"VFA_MARGIN_CALC","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS17.000010","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000010","section_id":"rule-fee"},"references":["IFRS 17 §45","IFRS 17 §B104"],"exercise":{"prompt":{"fr":"","en":"The fair value of the underlying items rises by €15,000. The entity’s share is 20% (case data). Calculate the effect on the margin and the part of the change that goes to the policyholder.","es":""},"explanation":{"fr":"","en":"€15,000 × 20% = €3,000 on the margin; the rest, €15,000 − €3,000 = €12,000, goes to the policyholder and does not affect the margin (IFRS 17).","es":""},"common_error":{"fr":"","en":"Applying the whole rise of €15,000 to the margin.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Change in fair value","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Entity's share","es":""},"value":"20","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Effect on the margin","es":""},"answer":3000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Policyholder's share (outside the margin)","es":""},"answer":12000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Effect on the margin","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Change in fair value","es":""},"value":15000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Entity's share","es":""},"value":20,"unit":"PERCENT"}],"result":3000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Policyholder's share (outside the margin)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Change in fair value","es":""},"value":15000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Effect on the margin","es":""},"value":3000,"unit":"EUR"}],"result":12000,"unit":"EUR"}],"references":["REF.IFRS17.45","REF.IFRS17.B104"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000091","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.VFA.FEE_MEASUREMENT"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"LIFE","tested_point":"VFA_MARGIN_MINI_CASE","difficulty":"ADVANCED","estimated_time_s":170,"lesson_id":"LS.IFRS17.000010","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000010","section_id":"rule-fee"},"references":["IFRS 17 §45","IFRS 17 §B104"],"exercise":{"prompt":{"fr":"","en":"Read the file then answer the three questions.","es":""},"explanation":{"fr":"","en":"The fall in the entity’s share reduces the margin by €4,000 to €1,000; the policyholder’s share acts on the obligation (IFRS 17).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Sérénis Vie's fund 'Fonds-Avenir' has an opening margin of €5,000. The entity's share of the fair value of the underlying items is 20% (case data). During the period, fair value falls by €20,000. No other movement of the margin is considered (case convention).","es":""},"exhibits":[{"title":{"fr":"","en":"Exhibit 1: movement","es":""},"body":{"fr":"","en":"Fair value of the underlying items: fall of €20,000 over the period.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Calculate the effect of the fall on the margin.","es":""},"explanation":{"fr":"","en":"€20,000 × 20% = €4,000 decrease in the margin.","es":""},"common_error":{"fr":"","en":"Charging the whole fair value decrease to the margin: only the entity's share adjusts it.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fall in fair value","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Entity's share","es":""},"value":"20","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Effect on the margin (negative = decrease)","es":""},"answer":-4000,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"Calculate the margin after the fall (before any release).","es":""},"explanation":{"fr":"","en":"€5,000 − €4,000 = €1,000.","es":""},"common_error":{"fr":"","en":"Deducting the whole decrease from the margin rather than the entity's share only.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening margin","es":""},"value":"5000","unit":"EUR"},{"label":{"fr":"","en":"Effect of the fall","es":""},"value":"-4000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Margin after the fall","es":""},"answer":1000,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"The fall of €20,000 is recognised in full in insurance finance expense.","es":""},"explanation":{"fr":"","en":"The entity’s share (€4,000) adjusts the margin; only the rest relates to the obligation to the policyholder (IFRS 17).","es":""},"common_error":{"fr":"","en":"Taking the whole decrease to finance result: the entity's share adjusts the margin.","es":""},"format":"TRUE_FALSE","answer":false,"id":"p3","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000092","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.REINSURANCE.GENERAL_MODEL"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"REINSURANCE","tested_point":"REINSURANCE_SEPARATE_PRESENTATION","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IFRS17.000011","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000011","section_id":"example"},"references":["IFRS 17 §60"],"exercise":{"prompt":{"fr":"","en":"Mutuelle Vallor may present a single net amount by offsetting the liability of the underlying contracts against the asset of the reinsurance contract that covers them.","es":""},"explanation":{"fr":"","en":"The reinsurance contract is measured and presented separately: the reinsurance asset and the underlying liability are not offset (IFRS 17).","es":""},"common_error":{"fr":"","en":"Presenting a net exposure.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000093","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.REINSURANCE.GENERAL_MODEL"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"REINSURANCE","tested_point":"REINSURANCE_VS_DIRECT","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IFRS17.000011","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000011","section_id":"rule-model"},"references":["IFRS 17 §60"],"exercise":{"prompt":{"fr":"","en":"Classify each statement according to whether it describes the reinsurance contract held or the insurance contract issued.","es":""},"explanation":{"fr":"","en":"For reinsurance held, the adjustment reflects the risk transferred and the margin may be a net cost; measurement is separate from the underlying contracts; the notion of an onerous group is that of insurance issued, but reinsurance held is also grouped with other reinsurance contracts (IFRS 17).","es":""},"common_error":{"fr":"","en":"Attributing the onerous-at-inception notion to reinsurance held: it belongs to insurance issued.","es":""},"format":"CLASSIFICATION","categories":[{"id":"HELD","text":{"fr":"","en":"Reinsurance held","es":""}},{"id":"ISS","text":{"fr":"","en":"Insurance issued","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The risk adjustment reflects the risk transferred to the reinsurer","es":""},"category":"HELD"},{"id":"i2","text":{"fr":"","en":"The margin may represent a net cost of purchasing the protection","es":""},"category":"HELD"},{"id":"i3","text":{"fr":"","en":"A group may be onerous at initial recognition","es":""},"category":"ISS"},{"id":"i4","text":{"fr":"","en":"The contract is measured separately from the underlying contracts it covers","es":""},"category":"HELD"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000094","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.REINSURANCE.GENERAL_MODEL"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"REINSURANCE","tested_point":"REINSURANCE_TREATMENT_CASE","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IFRS17.000011","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000011","section_id":"example"},"references":["IFRS 17 §60"],"exercise":{"prompt":{"fr":"","en":"Orbis Re issues a reinsurance contract to Mutuelle Vallor. Which statement correctly describes the accounting at Vallor?","es":""},"explanation":{"fr":"","en":"A reinsurance contract held falls under IFRS 17, is measured separately from the underlying contracts and presented separately (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Vallor includes the reinsurance contract in the groups of underlying contracts it covers","es":""},"correct":false,"feedback":{"fr":"","en":"The reinsurance contract is measured separately: it does not enter the groups of the underlying contracts (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"Vallor measures it on its own and presents a reinsurance asset or liability","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Vallor accounts for the contract under IFRS 9, because it is a hedging instrument","es":""},"correct":false,"feedback":{"fr":"","en":"A reinsurance contract held is within the scope of IFRS 17, not IFRS 9 (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"Vallor recognises nothing until a recovery is due","es":""},"correct":false,"feedback":{"fr":"","en":"The reinsurance contract held is recognised and measured from its initial recognition, before any recovery (IFRS 17).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000095","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.REINSURANCE.LOSS_RECOVERY"],"dimension":"CALCULATION","format":"CALCULATION","context":"REINSURANCE","tested_point":"LOSS_RECOVERY_CALC","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS17.000011","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000011","section_id":"rule-recovery"},"references":["IFRS 17 §66A"],"exercise":{"prompt":{"fr":"","en":"An onerous underlying group recognises an initial loss of €20,000. A proportional reinsurance contract, entered into before recognition, recovers 30% of claims. Calculate the expected recovery and the net effect on profit or loss.","es":""},"explanation":{"fr":"","en":"€20,000 × 30% = €6,000; net effect = −€20,000 + €6,000 = −€14,000 (IFRS 17, 2020 amendments).","es":""},"common_error":{"fr":"","en":"Applying 30% to the net loss of the group instead of the gross loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Loss of the underlying group","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Share of claims recovered","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Expected recovery","es":""},"answer":6000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Net effect on profit or loss (negative = net loss)","es":""},"answer":-14000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Expected recovery","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Loss of the underlying group","es":""},"value":20000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of claims recovered","es":""},"value":30,"unit":"PERCENT"}],"result":6000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Net effect on profit or loss (negative = net loss)","es":""},"expression":"-a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Loss of the underlying group","es":""},"value":20000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected recovery","es":""},"value":6000,"unit":"EUR"}],"result":-14000,"unit":"EUR"}],"references":["REF.IFRS17.66A"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000096","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.REINSURANCE.LOSS_RECOVERY"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"REINSURANCE","tested_point":"LOSS_RECOVERY_RATIONALE","difficulty":"ADVANCED","estimated_time_s":70,"lesson_id":"LS.IFRS17.000011","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000011","section_id":"rule-recovery"},"references":["IFRS 17 §66A"],"exercise":{"prompt":{"fr":"","en":"Why did the 2020 amendments add a loss-recovery component for reinsurance held?","es":""},"explanation":{"fr":"","en":"Without this mechanism, the underlying loss would be recognised at once while the recovery would be recognised only gradually: the component corrects the mismatch (IFRS 17, 2020 amendments).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To remove the loss of the underlying group when it is reinsured","es":""},"correct":false,"feedback":{"fr":"","en":"The loss of the underlying group is always recognised; only the expected recovery offsets it in parallel (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"To recognise the expected recovery at the same time as the loss of the underlying group","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"To impose a specific impairment test on all reinsurance contracts","es":""},"correct":false,"feedback":{"fr":"","en":"The mechanism addresses the recognition mismatch between the loss and its recovery, not an impairment test (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"To allow the reinsurance asset and the underlying liability to be offset in the statement of financial position","es":""},"correct":false,"feedback":{"fr":"","en":"Presentation remains separate; the point is the timing of recognition of the recovery (IFRS 17).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000097","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.REINSURANCE.LOSS_RECOVERY"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"REINSURANCE","tested_point":"LOSS_RECOVERY_MINI_CASE","difficulty":"EXPERT","estimated_time_s":190,"lesson_id":"LS.IFRS17.000011","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000011","section_id":"judgment"},"references":["IFRS 17 §66A"],"exercise":{"prompt":{"fr":"","en":"Read the file then answer the three questions.","es":""},"explanation":{"fr":"","en":"RP and RX both meet the timing condition; RP gives €6,000 of recovery and €9,000 of net loss, the recovery under RX depending on the percentage of claims it is expected to recover (IFRS 17, para. 66A).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Mutuelle Vallor recognises an initial loss of €15,000 on underlying group B. It holds two reinsurance contracts entered into before the group is recognised: RP, proportional, which recovers 40% of the group's claims; RX, excess of loss, whose recovery depends on a claims threshold for the portfolio.","es":""},"exhibits":[{"title":{"fr":"","en":"Exhibit 1: the two contracts","es":""},"body":{"fr":"","en":"RP covers 40% of the claims of each contract in group B. RX is triggered above a claims threshold for the entire portfolio.","es":""}}],"parts":[{"prompt":{"fr":"","en":"To which of the two contracts does the loss-recovery mechanism apply?","es":""},"explanation":{"fr":"","en":"The mechanism covers any treaty entered into no later than the recognition of the onerous contracts, proportional or not; for RX, the amount depends on the percentage of the group's claims it is expected to recover, which may be nil if the threshold is not reached (IFRS 17, para. 66A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To RX only, because it covers the largest claims","es":""},"correct":false,"feedback":{"fr":"","en":"The size of the claims covered is not the test: RP and RX were both entered into before the group was recognised (IFRS 17, para. 66A).","es":""}},{"id":"B","text":{"fr":"","en":"To both contracts, since both were entered into before the group","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"To RP only, which covers a proportionate share of the group","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not restrict the mechanism to proportional treaties: its condition concerns the date the treaty is entered into (IFRS 17, para. 66A).","es":""}}],"id":"p1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Calculate the expected recovery on RP and the net effect on profit or loss.","es":""},"explanation":{"fr":"","en":"€15,000 × 40% = €6,000; −€15,000 + €6,000 = −€9,000.","es":""},"common_error":{"fr":"","en":"Recognising the underlying loss without the expected reinsurance recovery, or the reverse.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Underlying loss","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Share recovered by RP","es":""},"value":"40","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Expected recovery","es":""},"answer":6000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Net effect on profit or loss","es":""},"answer":-9000,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Expected recovery","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Underlying loss","es":""},"value":15000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share recovered by RP","es":""},"value":40,"unit":"PERCENT"}],"result":6000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Net effect on profit or loss","es":""},"expression":"-a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Underlying loss","es":""},"value":15000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected recovery","es":""},"value":6000,"unit":"EUR"}],"result":-9000,"unit":"EUR"}],"references":["REF.IFRS17.66A"]}},{"prompt":{"fr":"","en":"Vallor’s file must document the link between RP and the underlying contracts and the recovery percentage adopted.","es":""},"explanation":{"fr":"","en":"The percentage and the attachment of RP to the contracts covered rest on a judgment that the entity documents (IFRS 17, 2020 amendments).","es":""},"common_error":{"fr":"","en":"Using a recovery percentage without documenting the link between reinsurance and covered contracts.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000098","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.REVENUE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"REVENUE_CONCEPT_TF","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS17.000012","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000012","section_id":"understand"},"references":["IFRS 17 §83"],"exercise":{"prompt":{"fr":"","en":"Under IFRS 17, insurance revenue for a period equals the premiums collected during that period.","es":""},"explanation":{"fr":"","en":"Insurance revenue reflects the services provided in the period, not the collection of premiums (IFRS 17).","es":""},"common_error":{"fr":"","en":"Equating insurance revenue with premiums written.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000099","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.REVENUE"],"dimension":"CALCULATION","format":"CALCULATION","context":"MOTOR_INSURANCE","tested_point":"REVENUE_GMM_CALC","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS17.000012","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000012","section_id":"rule-revenue"},"references":["IFRS 17 §83"],"exercise":{"prompt":{"fr":"","en":"Expected claims and expenses for the period: €24,000; release of the risk adjustment: €800; margin release: €1,200 (case data). Calculate insurance revenue and the margin’s share of it.","es":""},"explanation":{"fr":"","en":"€24,000 + €800 + €1,200 = €26,000; the margin accounts for €1,200 of it (IFRS 17).","es":""},"common_error":{"fr":"","en":"Treating only the margin release as revenue.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Expected claims and expenses","es":""},"value":"24000","unit":"EUR"},{"label":{"fr":"","en":"Release of the risk adjustment","es":""},"value":"800","unit":"EUR"},{"label":{"fr":"","en":"Margin release","es":""},"value":"1200","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Insurance revenue","es":""},"answer":26000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Share of the margin in revenue","es":""},"answer":1200,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Insurance revenue","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected claims and expenses","es":""},"value":24000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Release of the risk adjustment","es":""},"value":800,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Margin release","es":""},"value":1200,"unit":"EUR"}],"result":26000,"unit":"EUR"}],"references":["REF.IFRS17.83"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000100","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.REVENUE"],"dimension":"CALCULATION","format":"CALCULATION","context":"PROPERTY","tested_point":"REVENUE_PAA_CALC","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS17.000012","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000012","section_id":"rule-revenue"},"references":["IFRS 17 §83"],"exercise":{"prompt":{"fr":"","en":"Group measured under the premium allocation approach: premium of €4,200, 12 months of coverage, allocated pro rata over time (case convention). Calculate insurance revenue for the first 7 months.","es":""},"explanation":{"fr":"","en":"Insurance revenue depicts the services provided in the period, at the expected consideration (IFRS 17, para. 83). With the pro rata time allocation used in the case, 7 of the 12 months of coverage have been provided: €4,200 × 7 ÷ 12 = €2,450.","es":""},"common_error":{"fr":"","en":"Recognising the whole premium of €4,200 as revenue on collection.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Premium","es":""},"value":"4200","unit":"EUR"},{"label":{"fr":"","en":"Coverage","es":""},"value":"12","unit":"MONTHS"},{"label":{"fr":"","en":"Months elapsed","es":""},"value":"7","unit":"MONTHS"}],"steps":[{"id":"s1","label":{"fr":"","en":"Insurance revenue","es":""},"answer":2450,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Insurance revenue","es":""},"expression":"a * b / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Premium","es":""},"value":4200,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Months elapsed","es":""},"value":7,"unit":"MONTHS"},{"symbol":"c","meaning":{"fr":"","en":"Coverage","es":""},"value":12,"unit":"MONTHS"}],"result":2450,"unit":"EUR"}],"rationale":{"fr":"","en":"Insurance revenue depicts the services provided in the period, at the expected consideration (IFRS 17, para. 83).","es":""},"references":["REF.IFRS17.83"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000101","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.SERVICE_EXPENSES"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"SERVICE_EXPENSES_CLASSIFICATION","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IFRS17.000012","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000012","section_id":"rule-expenses"},"references":["IFRS 17 §84"],"exercise":{"prompt":{"fr":"","en":"Classify each item: insurance service expense, insurance finance expense, or neither.","es":""},"explanation":{"fr":"","en":"Claims and losses of onerous groups are insurance service expenses; unwinding is financial; the repayment of an investment component is not an expense (IFRS 17).","es":""},"common_error":{"fr":"","en":"Classifying a surrender value repayment as an expense: it is an investment component, excluded from expenses.","es":""},"format":"CLASSIFICATION","categories":[{"id":"SE","text":{"fr":"","en":"Insurance service expense","es":""}},{"id":"FE","text":{"fr":"","en":"Insurance finance expense","es":""}},{"id":"NO","text":{"fr":"","en":"Neither","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Claims incurred in the period","es":""},"category":"SE"},{"id":"i2","text":{"fr":"","en":"Unwinding of the group’s liability","es":""},"category":"FE"},{"id":"i3","text":{"fr":"","en":"Repayment of a surrender value that would be due even without an insured event","es":""},"category":"NO"},{"id":"i4","text":{"fr":"","en":"Loss of a group that has become onerous","es":""},"category":"SE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000102","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.SERVICE_EXPENSES"],"dimension":"CALCULATION","format":"CALCULATION","context":"MOTOR_INSURANCE","tested_point":"SERVICE_RESULT_CALC","difficulty":"ADVANCED","estimated_time_s":110,"lesson_id":"LS.IFRS17.000012","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000012","section_id":"numeric-service-result"},"references":["IFRS 17 §84"],"exercise":{"prompt":{"fr":"","en":"Insurance revenue: €32,900. Incurred claims: €29,000; claims settlement expenses: €2,500; loss on an onerous group: €1,200 (case data). Calculate insurance service expenses and the insurance service result.","es":""},"explanation":{"fr":"","en":"Expenses = €29,000 + €2,500 + €1,200 = €32,700; result = €32,900 − €32,700 = €200 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Forgetting the loss on the onerous group: expenses of €31,500.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Insurance revenue","es":""},"value":"32900","unit":"EUR"},{"label":{"fr":"","en":"Incurred claims","es":""},"value":"29000","unit":"EUR"},{"label":{"fr":"","en":"Settlement expenses","es":""},"value":"2500","unit":"EUR"},{"label":{"fr":"","en":"Loss on onerous group","es":""},"value":"1200","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Insurance service expenses","es":""},"answer":32700,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Insurance service result","es":""},"answer":200,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Insurance service expenses","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Incurred claims","es":""},"value":29000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Settlement expenses","es":""},"value":2500,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Loss on onerous group","es":""},"value":1200,"unit":"EUR"}],"result":32700,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Insurance service result","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Insurance revenue","es":""},"value":32900,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Insurance service expenses","es":""},"value":32700,"unit":"EUR"}],"result":200,"unit":"EUR"}],"references":["REF.IFRS17.84"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000103","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.SERVICE_EXPENSES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"LIFE","tested_point":"INVESTMENT_COMPONENT_TF","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IFRS17.000012","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000012","section_id":"rule-expenses"},"references":["IFRS 17 §84"],"exercise":{"prompt":{"fr":"","en":"The payment of a surrender value of €5,000 that would have been due even without an insured event is an insurance service expense of the period.","es":""},"explanation":{"fr":"","en":"It is the repayment of an investment component: it is excluded from insurance service expenses (IFRS 17).","es":""},"common_error":{"fr":"","en":"Including in expenses an amount due even without an insured event: it is an investment component.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000104","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.FINANCE_INCOME_EXPENSE"],"dimension":"CALCULATION","format":"CALCULATION","context":"LIFE","tested_point":"FINANCE_EXPENSE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IFRS17.000012","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000012","section_id":"rule-finance"},"references":["IFRS 17 §87"],"exercise":{"prompt":{"fr":"","en":"Opening liability of a group: €80,000. Accretion rate for the period: 3% (case data; all finance income and expenses go to profit or loss). Calculate the insurance finance expense and the liability after accretion, with no other movement.","es":""},"explanation":{"fr":"","en":"€80,000 × 3% = €2,400; €80,000 + €2,400 = €82,400 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Presenting the finance expense within the insurance service result.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening liability","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Accretion rate","es":""},"value":"3","unit":"PERCENT"}],"steps":[{"id":"s1","label":{"fr":"","en":"Insurance finance expense","es":""},"answer":2400,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Liability after accretion","es":""},"answer":82400,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Insurance finance expense","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening liability","es":""},"value":80000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accretion rate","es":""},"value":3,"unit":"PERCENT"}],"result":2400,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Liability after accretion","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening liability","es":""},"value":80000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Insurance finance expense","es":""},"value":2400,"unit":"EUR"}],"result":82400,"unit":"EUR"}],"references":["REF.IFRS17.87"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000105","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.FINANCE_INCOME_EXPENSE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"LIFE","tested_point":"FINANCE_EXPENSE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":65,"lesson_id":"LS.IFRS17.000012","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000012","section_id":"rule-finance"},"references":["IFRS 17 §87"],"exercise":{"prompt":{"fr":"","en":"Post the entry for the insurance finance expense of €2,400 for the period (liability in a single account).","es":""},"explanation":{"fr":"","en":"The finance expense is in the finance result (debit); the liability rises by €2,400 (credit). No cash is involved (IFRS 17).","es":""},"common_error":{"fr":"","en":"Debiting insurance service expenses instead of the finance expense.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"fin","text":{"fr":"","en":"Insurance finance expense","es":""}},{"id":"liab","text":{"fr":"","en":"Insurance contract liability","es":""}},{"id":"exp","text":{"fr":"","en":"Insurance service expenses","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"fin","side":"DEBIT","amount":2400,"given":["account","side"]},{"id":"l2","account":"liab","side":"CREDIT","amount":2400,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000106","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.FINANCE_INCOME_EXPENSE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"FINANCE_DEFINITION_BLANKS","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS17.000012","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000012","section_id":"understand"},"references":["IFRS 17 §87"],"exercise":{"prompt":{"fr":"","en":"Which of these items is presented in insurance finance income or expenses and not in the insurance service result?","es":""},"explanation":{"fr":"","en":"Insurance finance income or expenses arise from the time value and financial risk, of which unwinding is part (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Claims incurred in the period","es":""},"correct":false,"feedback":{"fr":"","en":"Incurred claims are an insurance service expense (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"The release of the margin for services provided","es":""},"correct":false,"feedback":{"fr":"","en":"The margin release is included in insurance revenue (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"The loss of an onerous group","es":""},"correct":false,"feedback":{"fr":"","en":"The loss of an onerous group is an insurance service expense (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"The effect of unwinding the liability","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000107","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.REVENUE"],"dimension":"APPLICATION","format":"MINI_CASE","context":"MOTOR_INSURANCE","tested_point":"PRESENTATION_MINI_CASE","difficulty":"ADVANCED","estimated_time_s":170,"lesson_id":"LS.IFRS17.000012","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000012","section_id":"numeric-service-result"},"references":["IFRS 17 §83"],"exercise":{"prompt":{"fr":"","en":"Read the file then answer the three questions.","es":""},"explanation":{"fr":"","en":"Insurance service result €1,400, finance expense €2,000, net insurance result −€600 (IFRS 17).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"For its period, Mutuelle Vallor presents group G under the general model with the following data: expected claims and expenses €30,000, release of the risk adjustment €1,000, margin release €1,900; incurred claims and settlement expenses €31,500; opening liability €50,000 and accretion rate of 4% (all finance income and expenses go to profit or loss, case convention).","es":""},"exhibits":[{"title":{"fr":"","en":"Exhibit 1: data","es":""},"body":{"fr":"","en":"See the statement: no investment component or acquisition cash flows.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Calculate insurance revenue and the insurance service result.","es":""},"explanation":{"fr":"","en":"€30,000 + €1,000 + €1,900 = €32,900; €32,900 − €31,500 = €1,400.","es":""},"common_error":{"fr":"","en":"Taking expected claims as revenue without adding the risk adjustment release and margin release.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Expected claims and expenses","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Release of the adjustment","es":""},"value":"1000","unit":"EUR"},{"label":{"fr":"","en":"Margin release","es":""},"value":"1900","unit":"EUR"},{"label":{"fr":"","en":"Expenses incurred","es":""},"value":"31500","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Insurance revenue","es":""},"answer":32900,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Insurance service result","es":""},"answer":1400,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Insurance revenue","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected claims and expenses","es":""},"value":30000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Release of the adjustment","es":""},"value":1000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Margin release","es":""},"value":1900,"unit":"EUR"}],"result":32900,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Insurance service result","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Insurance revenue","es":""},"value":32900,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expenses incurred","es":""},"value":31500,"unit":"EUR"}],"result":1400,"unit":"EUR"}],"references":["REF.IFRS17.83"]}},{"prompt":{"fr":"","en":"Calculate the finance expense and the net insurance result.","es":""},"explanation":{"fr":"","en":"€50,000 × 4% = €2,000; €1,400 − €2,000 = −€600.","es":""},"common_error":{"fr":"","en":"Including finance expense in the insurance service result: it is presented separately.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening liability","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Accretion rate","es":""},"value":"4","unit":"PERCENT"},{"label":{"fr":"","en":"Insurance service result","es":""},"value":"1400","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Finance expense","es":""},"answer":2000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Net insurance result","es":""},"answer":-600,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Finance expense","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening liability","es":""},"value":50000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accretion rate","es":""},"value":4,"unit":"PERCENT"}],"result":2000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Net insurance result","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Insurance service result","es":""},"value":1400,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Finance expense","es":""},"value":2000,"unit":"EUR"}],"result":-600,"unit":"EUR"}],"references":["REF.IFRS17.83"]}},{"prompt":{"fr":"","en":"What does the two-level presentation show?","es":""},"explanation":{"fr":"","en":"The insurance service result is €1,400; the finance expense of €2,000 brings the net result to −€600 (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The service is profitable; unwinding makes the net result negative","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The group is onerous, since the net result of the period is negative","es":""},"correct":false,"feedback":{"fr":"","en":"A negative net result does not make a group onerous: here the service generates a profit of €1,400 (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"Incurred claims are lower than the expected claims of the period","es":""},"correct":false,"feedback":{"fr":"","en":"It is the opposite: €31,500 incurred against €30,000 expected (IFRS 17).","es":""}}],"id":"p3","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000108","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.OCI_DISAGGREGATION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"OCI_CHOICE_LEVEL","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IFRS17.000013","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000013","section_id":"understand"},"references":["IFRS 17 §88"],"exercise":{"prompt":{"fr":"","en":"At what level is the option to disaggregate insurance finance income or expenses into other comprehensive income exercised?","es":""},"explanation":{"fr":"","en":"The policy choice is exercised portfolio by portfolio (IFRS 17, para. 88).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Contract by contract","es":""},"correct":false,"feedback":{"fr":"","en":"The option is chosen at portfolio level, not contract level (IFRS 17, para. 88).","es":""}},{"id":"B","text":{"fr":"","en":"For the entity as a whole, once and for all","es":""},"correct":false,"feedback":{"fr":"","en":"The entity may disaggregate for one portfolio and not for another (IFRS 17, para. 88).","es":""}},{"id":"C","text":{"fr":"","en":"Portfolio by portfolio","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Group by group, at each recognition","es":""},"correct":false,"feedback":{"fr":"","en":"The level of the choice is the portfolio, which comprises several groups (IFRS 17, para. 88).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS17.000109","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.OCI_DISAGGREGATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"LIFE","tested_point":"OCI_SPLIT_CALC","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS17.000013","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000013","section_id":"numeric-oci"},"references":["IFRS 17 §88"],"exercise":{"prompt":{"fr":"","en":"Opening liability: €20,000. Locked-in rate: 5% (systematic allocation). Total financial change for the period: €1,500 (case data). Calculate the part in profit or loss and the part in other comprehensive income.","es":""},"explanation":{"fr":"","en":"€20,000 × 5% = €1,000 in profit or loss; €1,500 − €1,000 = €500 in other comprehensive income (IFRS 17, para. 88).","es":""},"common_error":{"fr":"","en":"Putting the whole €1,500 in profit or loss despite the disaggregation choice.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening liability","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Locked-in rate","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Total financial change","es":""},"value":"1500","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Part in profit or loss","es":""},"answer":1000,"tolerance":0,"unit":"EUR"},{"id":"s2","label":{"fr":"","en":"Part in other comprehensive income","es":""},"answer":500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Part in profit or loss","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening liability","es":""},"value":20000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Locked-in rate","es":""},"value":5,"unit":"PERCENT"}],"result":1000,"unit":"EUR"},{"step":"s2","meaning":{"fr":"","en":"Part in other comprehensive income","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total financial change","es":""},"value":1500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Part in profit or loss","es":""},"value":1000,"unit":"EUR"}],"result":500,"unit":"EUR"}],"references":["REF.IFRS17.88"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000110","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.OCI_DISAGGREGATION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"LIFE","tested_point":"OCI_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IFRS17.000013","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000013","section_id":"numeric-oci"},"references":["IFRS 17 §88"],"exercise":{"prompt":{"fr":"","en":"Sérénis Vie has chosen disaggregation: of a total financial change of €1,500, €1,000 goes to profit or loss and €500 to other comprehensive income. Post the entry (liability in a single account).","es":""},"explanation":{"fr":"","en":"The two debits (€1,000 and €500) total €1,500, equal to the credit to the liability (IFRS 17, para. 88).","es":""},"common_error":{"fr":"","en":"Debiting other comprehensive income with the whole change.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"fin","text":{"fr":"","en":"Insurance finance expense (profit or loss)","es":""}},{"id":"oci","text":{"fr":"","en":"Other comprehensive income: insurance finance","es":""}},{"id":"liab","text":{"fr":"","en":"Insurance contract liability","es":""}},{"id":"rev","text":{"fr":"","en":"Insurance revenue","es":""}}],"lines":[{"id":"l1","account":"fin","side":"DEBIT","amount":1000,"given":["account","side"]},{"id":"l2","account":"oci","side":"DEBIT","amount":500,"given":["account","side"]},{"id":"l3","account":"liab","side":"CREDIT","amount":1500,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000111","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.OCI_DISAGGREGATION"],"dimension":"ANALYSIS","format":"TRUE_FALSE","context":"LIFE","tested_point":"OCI_EFFECT_ANALYSIS","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS17.000013","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000013","section_id":"rule-oci"},"references":["IFRS 17 §88"],"exercise":{"prompt":{"fr":"","en":"When rates fall and the portfolio has chosen disaggregation, the finance expense presented in profit or loss is lower than the total financial change in the liability.","es":""},"explanation":{"fr":"","en":"Profit or loss receives the systematic allocation; the effect of the fall in rates beyond that goes to other comprehensive income (IFRS 17, para. 88).","es":""},"common_error":{"fr":"","en":"Taking the whole finance change to profit or loss despite disaggregation: the excess goes to OCI.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000112","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.DISCLOSURES"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"DISCLOSURE_MATCHING","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IFRS17.000013","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000013","section_id":"rule-disclosures"},"references":["IFRS 17 §78","IFRS 17 §100","IFRS 17 §117"],"exercise":{"prompt":{"fr":"","en":"Match each requirement with its content.","es":""},"explanation":{"fr":"","en":"Presentation separates assets and liabilities, reconciliations cover the three balances, judgments are disclosed; no offsetting is provided for (IFRS 17).","es":""},"common_error":{"fr":"","en":"Offsetting portfolio assets and liabilities in the balance sheet: they are presented separately.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Presentation in the statement of financial position","es":""}},{"id":"l2","text":{"fr":"","en":"Reconciliations","es":""}},{"id":"l3","text":{"fr":"","en":"Judgments","es":""}}],"right":[{"id":"r3","text":{"fr":"","en":"Significant judgments made in applying the standard and changes in them","es":""}},{"id":"r4","text":{"fr":"","en":"Offsetting of insurance assets and liabilities","es":""}},{"id":"r1","text":{"fr":"","en":"Portfolios of assets and liabilities presented separately","es":""}},{"id":"r2","text":{"fr":"","en":"Opening and closing balances of remaining coverage, incurred claims and the margin","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000113","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.DISCLOSURES"],"dimension":"CALCULATION","format":"CALCULATION","context":"PROPERTY","tested_point":"LRC_RECONCILIATION_CALC","difficulty":"ADVANCED","estimated_time_s":110,"lesson_id":"LS.IFRS17.000013","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000013","section_id":"rule-disclosures"},"references":["IFRS 17 §78","IFRS 17 §100","IFRS 17 §117"],"exercise":{"prompt":{"fr":"","en":"Opening balance of the liability for remaining coverage: €10,000; premiums received: €60,000; acquisition cash flows paid: €4,000; amortisation of acquisition cash flows: €3,500; insurance revenue: €55,000 (case data). Calculate the closing balance.","es":""},"explanation":{"fr":"","en":"€10,000 + €60,000 − €4,000 + €3,500 − €55,000 = €14,500 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Subtracting the amortisation of acquisition cash flows instead of adding it: a difference of €7,000.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening balance","es":""},"value":"10000","unit":"EUR"},{"label":{"fr":"","en":"Premiums received","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Acquisition cash flows paid","es":""},"value":"4000","unit":"EUR"},{"label":{"fr":"","en":"Amortisation of acquisition cash flows","es":""},"value":"3500","unit":"EUR"},{"label":{"fr":"","en":"Insurance revenue","es":""},"value":"55000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Closing balance","es":""},"answer":14500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Closing balance","es":""},"expression":"a + b - c + d - e","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening balance","es":""},"value":10000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Premiums received","es":""},"value":60000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Acquisition cash flows paid","es":""},"value":4000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Amortisation of acquisition cash flows","es":""},"value":3500,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Insurance revenue","es":""},"value":55000,"unit":"EUR"}],"result":14500,"unit":"EUR"}],"rationale":{"fr":"","en":"€10,000 + €60,000 − €4,000 + €3,500 − €55,000 = €14,500 (IFRS 17).","es":""},"references":["REF.IFRS17.78","REF.IFRS17.100","REF.IFRS17.117"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000114","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.DISCLOSURES"],"dimension":"DOCUMENTATION","format":"ERROR_SPOT","context":"GENERIC","tested_point":"DISCLOSURE_JUDGMENTS_ERRORS","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS17.000013","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000013","section_id":"judgment"},"references":["IFRS 17 §78","IFRS 17 §100","IFRS 17 §117"],"exercise":{"prompt":{"fr":"","en":"A manager prepares the disclosures. Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"The file must present assets and liabilities separately, reconcile the three balances and describe judgments and changes in them (IFRS 17).","es":""},"common_error":{"fr":"","en":"Presenting a single net amount in the statement of financial position.","es":""},"format":"ERROR_SPOT","statements":[{"id":"e1","text":{"fr":"","en":"Portfolios of insurance contracts issued that are assets and those that are liabilities are presented separately.","es":""},"erroneous":false},{"id":"e2","text":{"fr":"","en":"Insurance assets and liabilities are offset in the statement of financial position to present only a net amount.","es":""},"erroneous":true,"correction":{"fr":"","en":"Portfolios that are assets and those that are liabilities are presented separately, without offsetting.","es":""}},{"id":"e3","text":{"fr":"","en":"Changes in significant judgments made in applying the standard are disclosed.","es":""},"erroneous":false},{"id":"e4","text":{"fr":"","en":"A reconciliation of the contractual service margin is required only for onerous groups.","es":""},"erroneous":true,"correction":{"fr":"","en":"The reconciliations cover the liability for remaining coverage, the liability for incurred claims and the contractual service margin, without limitation to onerous groups.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000115","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.DISCLOSURES"],"dimension":"DOCUMENTATION","format":"MINI_CASE","context":"PROPERTY","tested_point":"DISCLOSURE_MINI_CASE","difficulty":"EXPERT","estimated_time_s":170,"lesson_id":"LS.IFRS17.000013","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000013","section_id":"rule-disclosures"},"references":["IFRS 17 §78","IFRS 17 §100","IFRS 17 §117"],"exercise":{"prompt":{"fr":"","en":"Read the file then answer the three questions.","es":""},"explanation":{"fr":"","en":"The reconciliation closes at €14,500; it is presented with the movements line by line, and the liability portfolio is presented separately from assets (IFRS 17).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Assurances Navarre prepares its note for a portfolio measured under the premium allocation approach. Opening balance of the liability for remaining coverage: €10,000; premiums received: €60,000; acquisition cash flows paid: €4,000; amortisation of acquisition cash flows: €3,500; insurance revenue: €55,000. The portfolio is, at the reporting date, a net liability.","es":""},"exhibits":[{"title":{"fr":"","en":"Exhibit 1: movements","es":""},"body":{"fr":"","en":"See the statement: five movements on the liability for remaining coverage.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Prepare the “closing balance” line of the reconciliation.","es":""},"explanation":{"fr":"","en":"Net movements = €60,000 − €4,000 + €3,500 − €55,000 = €4,500; closing = €10,000 + €4,500 = €14,500.","es":""},"common_error":{"fr":"","en":"Adding all movements without signs: acquisition cash flows paid and revenue reduce the balance.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening balance","es":""},"value":"10000","unit":"EUR"},{"label":{"fr":"","en":"Net movements","es":""},"value":"4500","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Closing balance","es":""},"answer":14500,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Closing balance","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening balance","es":""},"value":10000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Net movements","es":""},"value":4500,"unit":"EUR"}],"result":14500,"unit":"EUR"}],"references":["REF.IFRS17.78","REF.IFRS17.100","REF.IFRS17.117"]}},{"prompt":{"fr":"","en":"Classify each line: movement that increases the liability or reduces it.","es":""},"explanation":{"fr":"","en":"Premiums and amortisation of acquisition cash flows increase the liability; acquisition cash flows paid and revenue reduce it (IFRS 17).","es":""},"common_error":{"fr":"","en":"Considering insurance revenue increases the liability: it comes out of it and reduces it.","es":""},"format":"CLASSIFICATION","categories":[{"id":"UP","text":{"fr":"","en":"Increases the liability","es":""}},{"id":"DOWN","text":{"fr":"","en":"Reduces the liability","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Premiums received","es":""},"category":"UP"},{"id":"i2","text":{"fr":"","en":"Amortisation of acquisition cash flows","es":""},"category":"UP"},{"id":"i3","text":{"fr":"","en":"Acquisition cash flows paid","es":""},"category":"DOWN"},{"id":"i4","text":{"fr":"","en":"Insurance revenue for the period","es":""},"category":"DOWN"}],"id":"p2","dimension":"DOCUMENTATION"},{"prompt":{"fr":"","en":"The portfolio, a net liability, is presented separately from portfolios that are assets.","es":""},"explanation":{"fr":"","en":"Portfolios that are liabilities and those that are assets are presented separately (IFRS 17).","es":""},"common_error":{"fr":"","en":"Offsetting a liability portfolio with an asset portfolio: they are presented separately.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000116","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.MODIFICATION.MODIFICATION_DERECOGNITION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"MODIFICATION_CONDITIONS","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IFRS17.000014","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000014","section_id":"rule-modification"},"references":["IFRS 17 §72","IFRS 17 §74"],"exercise":{"prompt":{"fr":"","en":"Classify each modification according to its treatment: derecognition and new contract, or change in estimates.","es":""},"explanation":{"fr":"","en":"Among the conditions retained by the course, modifications that would have changed the scope, separation, boundary or group lead to derecognition; in the course cases, the others are changes in estimates (IFRS 17).","es":""},"common_error":{"fr":"","en":"Derecognising for any modification: only those that would have changed scope, separation, boundary or group do so.","es":""},"format":"CLASSIFICATION","categories":[{"id":"NEW","text":{"fr":"","en":"Derecognition and new contract","es":""}},{"id":"EST","text":{"fr":"","en":"Change in estimates","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"One-month deferral of the premium due date, with no other change","es":""},"category":"EST"},{"id":"i2","text":{"fr":"","en":"Clause which, with its terms from inception, would have excluded the contract from the scope of IFRS 17","es":""},"category":"NEW"},{"id":"i3","text":{"fr":"","en":"3% reduction of the remaining premium, with no effect on treatment","es":""},"category":"EST"},{"id":"i4","text":{"fr":"","en":"Clause which, from inception, would have placed the contract in another group","es":""},"category":"NEW"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000117","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.MODIFICATION.MODIFICATION_DERECOGNITION"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"EXTINGUISHMENT_CASES","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS17.000014","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000014","section_id":"understand"},"references":["IFRS 17 §72","IFRS 17 §74"],"exercise":{"prompt":{"fr":"","en":"In which cases is an insurance contract derecognised?","es":""},"explanation":{"fr":"","en":"There is derecognition through extinguishment (expiry, discharge, cancellation) or through a modification meeting the test (IFRS 17).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"When the policyholder reports a major claim","es":""},"correct":false,"feedback":{"fr":"","en":"A reported claim does not extinguish the contract: it feeds the liability for incurred claims (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"When the obligation specified in the contract has expired","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"When the obligation is discharged or cancelled","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"When the premium is revised upwards","es":""},"correct":false,"feedback":{"fr":"","en":"A premium revision does not lead to derecognition, unless it affects the treatment of the contract (IFRS 17).","es":""}},{"id":"E","text":{"fr":"","en":"When the modification meets the conditions of the test on the new terms","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000118","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.MODIFICATION.MODIFICATION_DERECOGNITION"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"LIFE","tested_point":"MODIFICATION_EVALUATION","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IFRS17.000014","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000014","section_id":"rule-modification"},"references":["IFRS 17 §72","IFRS 17 §74"],"exercise":{"prompt":{"fr":"","en":"Prévoyance Altis modifies a renewable contract by adding a clause that permanently caps any premium increase at 2% a year, while expected claims grow by 10%. With this clause from inception, the contract boundary would have been longer. What is the treatment?","es":""},"explanation":{"fr":"","en":"With the clause from inception, the contract boundary would have been different: the original contract is derecognised and a new contract is recognised (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The contract is kept and the effect on future premiums is a change in estimates","es":""},"correct":false,"feedback":{"fr":"","en":"The clause would have changed the contract boundary at inception: that is a condition for derecognition (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"The original contract is derecognised and a new contract is recognised","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The contract leaves IFRS 17 since it guarantees a price","es":""},"correct":false,"feedback":{"fr":"","en":"Guaranteeing a price does not remove significant insurance risk: the contract remains in scope (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"A loss is recognised immediately on the original contract","es":""},"correct":false,"feedback":{"fr":"","en":"The modification test does not determine a loss: it determines whether to derecognise (IFRS 17).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000119","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.MODIFICATION.MODIFICATION_DERECOGNITION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"MODIFICATION_ESTIMATES_TF","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IFRS17.000014","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000014","section_id":"example"},"references":["IFRS 17 §72","IFRS 17 §74"],"exercise":{"prompt":{"fr":"","en":"A 5% reduction of the annual premium, with no change in cover, scope or group, leads to derecognition of the contract.","es":""},"explanation":{"fr":"","en":"None of the conditions retained by the course (scope, separation, boundary, group) is met: the contract is kept and the effect is a change in estimates (IFRS 17).","es":""},"common_error":{"fr":"","en":"Derecognising because the premium change is visible.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000120","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.FULL_RETROSPECTIVE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"TRANSITION_MEANING","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IFRS17.000015","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"understand"},"references":["IFRS 17 §C3"],"exercise":{"prompt":{"fr":"","en":"What does full retrospective application of IFRS 17 mean for a group of contracts?","es":""},"explanation":{"fr":"","en":"Full retrospective application means measuring each group as if IFRS 17 had always been applied, unless impracticable (IFRS 17, para. C3).","es":""},"common_error":{"fr":"","en":"Confusing full retrospective application with prospective application from transition.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Applying IFRS 17 only to future cash flows, from the transition date","es":""},"correct":false,"feedback":{"fr":"","en":"That would be prospective application: full application reconstructs the history of the group since its initial recognition (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"Carrying over the carrying amount under the previous standard without restatement","es":""},"correct":false,"feedback":{"fr":"","en":"Carrying over the old amount is not an application of IFRS 17: the group is remeasured under IFRS 17 (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"Measuring the group as if IFRS 17 had always been applied","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Measuring the group at fair value at the transition date","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value is a fallback approach, used only when full application is impracticable (IFRS 17).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000121","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.FULL_RETROSPECTIVE"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"LIFE","tested_point":"TRANSITION_APPROACH_DETERMINATION","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IFRS17.000015","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"rule-retrospective"},"references":["IFRS 17 §C3"],"exercise":{"prompt":{"fr":"","en":"Case data for each group. Classify the applicable transition approach.","es":""},"explanation":{"fr":"","en":"The full approach is required as long as it is practicable, even if it is lengthy; the fallback approaches open only in case of impracticability, group by group (IFRS 17, paras. C3 and C5).","es":""},"common_error":{"fr":"","en":"Choosing the fallback because implementation is lengthy.","es":""},"format":"CLASSIFICATION","categories":[{"id":"FULL","text":{"fr":"","en":"Full retrospective","es":""}},{"id":"FALL","text":{"fr":"","en":"Fallback approach (modified or fair value)","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Group 2022: all data since initial recognition are available","es":""},"category":"FULL"},{"id":"i2","text":{"fr":"","en":"Group 2005: historical cash flows were destroyed, full application is impracticable","es":""},"category":"FALL"},{"id":"i3","text":{"fr":"","en":"Group 2020: complete data, but the treatment would take long to implement","es":""},"category":"FULL"},{"id":"i4","text":{"fr":"","en":"Group 1998: no data on the initial risk adjustment was kept, full application impracticable","es":""},"category":"FALL"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000122","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.FULL_RETROSPECTIVE"],"dimension":"ANALYSIS","format":"TRUE_FALSE","context":"LIFE","tested_point":"TRANSITION_GROUP_LEVEL","difficulty":"ADVANCED","estimated_time_s":40,"lesson_id":"LS.IFRS17.000015","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"rule-retrospective"},"references":["IFRS 17 §C3"],"exercise":{"prompt":{"fr":"","en":"For the same portfolio, some groups may follow full retrospective application and others a fallback approach.","es":""},"explanation":{"fr":"","en":"Impracticability is assessed for each group of contracts, not for the portfolio (IFRS 17, para. C3).","es":""},"common_error":{"fr":"","en":"Imposing the same approach on the whole portfolio: impracticability is assessed group by group.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000123","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.IMPRACTICABILITY_CHOICE"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"FALLBACK_CHOICE_RULES","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS17.000015","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"rule-choice"},"references":["IFRS 17 §C5"],"exercise":{"prompt":{"fr":"","en":"Which statements about the choice between the modified retrospective approach and the fair value approach are correct?","es":""},"explanation":{"fr":"","en":"The fallback approaches open only in case of impracticability, with no preference and no combination for the same group (IFRS 17, para. C5).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The choice is open only if full retrospective application is impracticable for the group.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Fair value must be chosen first as soon as the modified retrospective approach is complex.","es":""},"correct":false,"feedback":{"fr":"","en":"No preference exists between the two (IFRS 17, para. C5).","es":""}},{"id":"C","text":{"fr":"","en":"The standard establishes no order of preference between the two approaches.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The two approaches are not combined for the same group.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The choice is made once for all the entity’s groups.","es":""},"correct":false,"feedback":{"fr":"","en":"The choice is made for each group concerned (IFRS 17, para. C5).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000124","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.IMPRACTICABILITY_CHOICE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"LIFE","tested_point":"FALLBACK_SELECTION","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IFRS17.000015","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"judgment"},"references":["IFRS 17 §C5"],"exercise":{"prompt":{"fr":"","en":"For the 1998 group, full application is impracticable. The data available make it possible to come close to the full result with reasonable and supportable information without undue cost. What may the entity do?","es":""},"explanation":{"fr":"","en":"In case of impracticability, the entity chooses between the two fallback approaches for the group, with no preference imposed; it documents its reason (IFRS 17, para. C5).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It must apply the modified retrospective approach, since the data allow it","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not require the modified approach where the data make it possible; it establishes no order of preference (IFRS 17, para. C5).","es":""}},{"id":"B","text":{"fr":"","en":"Choose the modified retrospective approach or the fair value approach, and document its choice","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It combines the modified retrospective approach for the margin and fair value for the rest of the group","es":""},"correct":false,"feedback":{"fr":"","en":"The two approaches are not combined for the same group (IFRS 17, para. C5).","es":""}},{"id":"D","text":{"fr":"","en":"It goes back to full retrospective application by estimating the missing data","es":""},"correct":false,"feedback":{"fr":"","en":"Impracticability is established: the fallback is the route provided for by the standard (IFRS 17, para. C5).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000125","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.IMPRACTICABILITY_CHOICE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"LIFE","tested_point":"FALLBACK_ORDER_ERRORS","difficulty":"ADVANCED","estimated_time_s":100,"lesson_id":"LS.IFRS17.000015","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"rule-choice"},"references":["IFRS 17 §C5"],"exercise":{"prompt":{"fr":"","en":"An analyst summarises the transition rules. Spot the erroneous statements.","es":""},"explanation":{"fr":"","en":"No preference between the fallback approaches and no combination for the same group; the choice is made group by group (IFRS 17, para. C5).","es":""},"common_error":{"fr":"","en":"Ranking the two approaches.","es":""},"format":"ERROR_SPOT","statements":[{"id":"e1","text":{"fr":"","en":"Impracticability of full application is assessed group by group.","es":""},"erroneous":false},{"id":"e2","text":{"fr":"","en":"The fair value approach must be tried before the modified retrospective approach.","es":""},"erroneous":true,"correction":{"fr":"","en":"No order of preference is established between the two fallback approaches.","es":""}},{"id":"e3","text":{"fr":"","en":"A single group may combine the modified approach and fair value for different items.","es":""},"erroneous":true,"correction":{"fr":"","en":"The two approaches are not combined for the same group.","es":""}},{"id":"e4","text":{"fr":"","en":"Two groups of the same portfolio may follow different fallback approaches.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000126","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.MODIFIED_RETROSPECTIVE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"LIFE","tested_point":"MODIFIED_RETROSPECTIVE_OBJECTIVE","difficulty":"INTERMEDIATE","estimated_time_s":55,"lesson_id":"LS.IFRS17.000015","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"rule-choice"},"references":["IFRS 17 §C6"],"exercise":{"prompt":{"fr":"","en":"What is the objective of the modified retrospective approach?","es":""},"explanation":{"fr":"","en":"The modified retrospective approach aims for the result closest to full application, with reasonable and supportable information available without undue cost (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To apply the same simplifications to all contracts, to limit the cost of transition","es":""},"correct":false,"feedback":{"fr":"","en":"The modified approach aims for the result closest to full application, not a uniform simplification (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"To align the margin with the fair value of the group determined under IFRS 13","es":""},"correct":false,"feedback":{"fr":"","en":"That is the object of the fair value approach, not of the modified approach (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"To come close to full application using reasonable and supportable information","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000127","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.MODIFIED_RETROSPECTIVE"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"LIFE","tested_point":"MODIFIED_RETROSPECTIVE_ANALYSIS","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IFRS17.000015","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"judgment"},"references":["IFRS 17 §C6"],"exercise":{"prompt":{"fr":"","en":"A group falls under the modified retrospective approach. The file proposes a simplification drawn from the information available. Which criterion applies to assess whether the simplification is acceptable?","es":""},"explanation":{"fr":"","en":"Each simplification is judged against the objective of the modified approach: to come close to the full result with reasonable and supportable information (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is acceptable as soon as it reduces the team’s workload","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion is closeness to the full result with supportable information, not convenience (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"It is acceptable if it increases the transition margin","es":""},"correct":false,"feedback":{"fr":"","en":"A favourable effect on the margin is not a criterion; the aim is closeness to the full result (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"It is acceptable if the auditor has already seen it in another group","es":""},"correct":false,"feedback":{"fr":"","en":"Precedents do not replace the assessment on the information of the group concerned (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"It must bring the result closer to that of full application","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000128","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.FAIR_VALUE"],"dimension":"CALCULATION","format":"CALCULATION","context":"LIFE","tested_point":"FAIR_VALUE_MARGIN_CALC","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS17.000015","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"numeric-fv"},"references":["IFRS 17 §C20"],"exercise":{"prompt":{"fr":"","en":"At the transition date, the fair value of a group is €64,000 and its fulfilment cash flows €55,000 (case data). Calculate the margin under the fair value approach.","es":""},"explanation":{"fr":"","en":"Under the fair value approach, the margin at the transition date is the difference between the fair value of the group and its fulfilment cash flows at that date (IFRS 17, para. C20): €64,000 − €55,000 = €9,000.","es":""},"common_error":{"fr":"","en":"Subtracting the other way round: −€9,000.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fair value of the group","es":""},"value":"64000","unit":"EUR"},{"label":{"fr":"","en":"Fulfilment cash flows","es":""},"value":"55000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Margin at the transition date","es":""},"answer":9000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Margin at the transition date","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the group","es":""},"value":64000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fulfilment cash flows","es":""},"value":55000,"unit":"EUR"}],"result":9000,"unit":"EUR"}],"rationale":{"fr":"","en":"Under the fair value approach, the margin at the transition date is the difference between the fair value of the group and its fulfilment cash flows at that date (IFRS 17, para. C20): €64,000 − €55,000 = €9,000.","es":""},"references":["REF.IFRS17.C20"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000129","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.FAIR_VALUE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"LIFE","tested_point":"FAIR_VALUE_DEFINITION","difficulty":"INTERMEDIATE","estimated_time_s":55,"lesson_id":"LS.IFRS17.000015","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"rule-choice"},"references":["IFRS 17 §C20"],"exercise":{"prompt":{"fr":"","en":"Under the fair value approach, how is the margin determined at the transition date?","es":""},"explanation":{"fr":"","en":"Margin = fair value of the group − fulfilment cash flows at the transition date (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"By reconstructing the initial recognition of the group","es":""},"correct":false,"feedback":{"fr":"","en":"That is the full or modified retrospective approach; fair value does not reconstruct the past (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"As the difference between the group’s fair value and the premiums received since inception","es":""},"correct":false,"feedback":{"fr":"","en":"Historical premiums play no part: the margin compares fair value with the fulfilment cash flows (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"As the group’s fair value less the margin of the previous year","es":""},"correct":false,"feedback":{"fr":"","en":"At transition there is no margin of the previous year to deduct: the margin is the difference between fair value and the fulfilment cash flows (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"As the group’s fair value less its fulfilment cash flows","es":""},"correct":true}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS17.000130","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.FAIR_VALUE"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"LIFE","tested_point":"FAIR_VALUE_MINI_CASE","difficulty":"ADVANCED","estimated_time_s":170,"lesson_id":"LS.IFRS17.000015","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"numeric-fv"},"references":["IFRS 17 §C20"],"exercise":{"prompt":{"fr":"","en":"Read the file then answer the three questions.","es":""},"explanation":{"fr":"","en":"The margin at transition is €8,000; a single fallback approach is applied to group F (IFRS 17, para. C5).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"At the transition date, Sérénis Vie cannot apply the full retrospective approach to group F. The entity chooses the fair value approach. Case data: fair value of the group €50,000 (measured under IFRS 13); fulfilment cash flows at the transition date €42,000.","es":""},"exhibits":[{"title":{"fr":"","en":"Exhibit 1: transition data","es":""},"body":{"fr":"","en":"Fair value €50,000; fulfilment cash flows €42,000.","es":""}}],"parts":[{"prompt":{"fr":"","en":"Calculate the margin at the transition date.","es":""},"explanation":{"fr":"","en":"€50,000 − €42,000 = €8,000.","es":""},"common_error":{"fr":"","en":"Reversing the subtraction or adding fulfilment cash flows to fair value: the margin is fair value in excess of those flows.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fair value","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Fulfilment cash flows","es":""},"value":"42000","unit":"EUR"}],"steps":[{"id":"s1","label":{"fr":"","en":"Margin at transition","es":""},"answer":8000,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"s1","meaning":{"fr":"","en":"Margin at transition","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value","es":""},"value":50000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fulfilment cash flows","es":""},"value":42000,"unit":"EUR"}],"result":8000,"unit":"EUR"}],"references":["REF.IFRS17.C20"]}},{"prompt":{"fr":"","en":"The entity must combine the fair value approach for the margin and the modified retrospective approach for the rest of group F.","es":""},"explanation":{"fr":"","en":"The two approaches are not combined for the same group (IFRS 17, para. C5).","es":""},"common_error":{"fr":"","en":"Combining two transition approaches for one group: only one applies per group.","es":""},"format":"TRUE_FALSE","answer":false,"id":"p2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Which justification for choosing fair value is best supported?","es":""},"explanation":{"fr":"","en":"The choice is possible because full application is impracticable; it is justified by the availability of information, with no preference imposed (IFRS 17, para. C5).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The information was not sufficient for the modified approach, and no preference is imposed","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Fair value is always the first-ranking approach when full application is impracticable","es":""},"correct":false,"feedback":{"fr":"","en":"The standard establishes no order of preference (IFRS 17, para. C5).","es":""}},{"id":"C","text":{"fr":"","en":"Fair value always gives a higher margin than the modified retrospective approach, hence the choice","es":""},"correct":false,"feedback":{"fr":"","en":"The effect on the margin is not a criterion of choice and cannot be generalised (IFRS 17).","es":""}}],"id":"p3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000131","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.AMENDMENTS_2020"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"AMENDMENTS_2020_UNCHANGED","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IFRS17.000015","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"rule-amendments"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"The June 2020 amendments to IFRS 17 removed the annual cohort requirement.","es":""},"explanation":{"fr":"","en":"The annual cohort requirement was not amended in 2020; the EU-specific exemption comes from a European regulation (IFRS 17, 2020 amendments).","es":""},"common_error":{"fr":"","en":"Attributing the EU exemption to the IASB amendments.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000132","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.AMENDMENTS_2020"],"dimension":"RECOGNITION","format":"MATCHING","context":"GENERIC","tested_point":"AMENDMENTS_2020_MATCHING","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IFRS17.000015","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"rule-amendments"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"Match each point of the standard with the effect of the June 2020 amendments.","es":""},"explanation":{"fr":"","en":"The 2020 amendments affected acquisition cash flows, reinsurance held and the effective date, without touching annual cohorts (IFRS 17, 2020 amendments).","es":""},"common_error":{"fr":"","en":"Believing the 2020 amendments removed annual cohorts: that requirement was not changed.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Acquisition cash flows","es":""}},{"id":"l2","text":{"fr":"","en":"Reinsurance held","es":""}},{"id":"l3","text":{"fr":"","en":"Effective date","es":""}},{"id":"l4","text":{"fr":"","en":"Annual cohorts","es":""}}],"right":[{"id":"r4","text":{"fr":"","en":"Requirement not amended","es":""}},{"id":"r5","text":{"fr":"","en":"Application of the fair value approach to all groups","es":""}},{"id":"r1","text":{"fr":"","en":"Allocation to future groups and acquisition asset","es":""}},{"id":"r2","text":{"fr":"","en":"Loss-recovery component of reinsurance held","es":""}},{"id":"r3","text":{"fr":"","en":"Deferral to 1 January 2023","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"},{"left":"l4","right":"r4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000133","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.COMPARATIVE_OVERLAY"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"OVERLAY_ELIGIBILITY","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IFRS17.000015","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"rule-overlay"},"references":["IFRS 17 §C28A"],"exercise":{"prompt":{"fr":"","en":"Valdor SA applies IFRS 17 and IFRS 9 for the first time on the same date. Its comparatives for financial assets are not restated under IFRS 9. What may it do?","es":""},"explanation":{"fr":"","en":"In case of simultaneous first application, the entity may present its non-restated comparatives for financial assets as if the IFRS 9 classification requirements had been applied (IFRS 17, December 2021 amendment).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Mandatorily restate all asset comparatives under IFRS 9","es":""},"correct":false,"feedback":{"fr":"","en":"The option allows comparatives to be presented as if IFRS 9 had been applied; it does not require restatement (IFRS 17, December 2021 amendment).","es":""}},{"id":"B","text":{"fr":"","en":"Present no comparatives for its financial assets","es":""},"correct":false,"feedback":{"fr":"","en":"Comparatives are presented; the option changes the way of presenting them (IFRS 17, December 2021 amendment).","es":""}},{"id":"C","text":{"fr":"","en":"Use the classification overlay for these comparatives","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Apply the overlay to insurance liabilities","es":""},"correct":false,"feedback":{"fr":"","en":"The overlay concerns financial assets, not insurance liabilities (IFRS 17, December 2021 amendment).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000134","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.COMPARATIVE_OVERLAY"],"dimension":"RULE_KNOWLEDGE","format":"CLASSIFICATION","context":"GENERIC","tested_point":"OVERLAY_OBJECT","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IFRS17.000015","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"rule-overlay"},"references":["IFRS 17 §C28A"],"exercise":{"prompt":{"fr":"","en":"Classify each item: covered by the classification overlay option, or not covered.","es":""},"explanation":{"fr":"","en":"The option concerns the presentation of comparatives for financial assets not restated; it does not affect the margin or the discount rate (IFRS 17, December 2021 amendment).","es":""},"common_error":{"fr":"","en":"Applying the classification overlay to the margin or discount rate: it covers only financial asset comparatives.","es":""},"format":"CLASSIFICATION","categories":[{"id":"YES","text":{"fr":"","en":"Covered","es":""}},{"id":"NO","text":{"fr":"","en":"Not covered","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Comparatives for financial assets not restated under IFRS 9","es":""},"category":"YES"},{"id":"i2","text":{"fr":"","en":"Contractual service margin of an insurance group","es":""},"category":"NO"},{"id":"i3","text":{"fr":"","en":"Presentation of comparative information as if the IFRS 9 classification requirements had been applied","es":""},"category":"YES"},{"id":"i4","text":{"fr":"","en":"Choice of the discount rate for insurance cash flows","es":""},"category":"NO"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000135","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.INTERACTIONS.IFRS9"],"dimension":"APPLICATION","format":"MATCHING","context":"LIFE","tested_point":"IFRS9_SEPARATED_COMPONENT","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS17.000016","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000016","section_id":"rule-ifrs9"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"Match each component of a life contract with the standard that applies to its accounting.","es":""},"explanation":{"fr":"","en":"The two separable components follow IFRS 9; the death cover that remains follows IFRS 17 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Leaving the derivative or distinct savings in IFRS 17: once separated, they follow IFRS 9.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Embedded derivative indexed to a stock index, to be separated","es":""}},{"id":"l2","text":{"fr":"","en":"Distinct savings account, withdrawable independently of the cover","es":""}},{"id":"l3","text":{"fr":"","en":"Death cover that remains in the contract","es":""}}],"right":[{"id":"r3","text":{"fr":"","en":"IFRS 17","es":""}},{"id":"r4","text":{"fr":"","en":"IFRS 15","es":""}},{"id":"r1","text":{"fr":"","en":"IFRS 9, as a separated derivative","es":""}},{"id":"r2","text":{"fr":"","en":"IFRS 9, as a separated investment component","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000136","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.INTERACTIONS.IFRS9"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"LIFE","tested_point":"IFRS9_BACKING_ASSETS","difficulty":"INTERMEDIATE","estimated_time_s":50,"lesson_id":"LS.IFRS17.000016","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000016","section_id":"rule-ifrs9"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"Which standard governs the classification and measurement of the financial investments the insurer holds against its insurance liabilities?","es":""},"explanation":{"fr":"","en":"The insurer’s investments follow IFRS 9; IFRS 17 governs only insurance contracts (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 9","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"IFRS 17, because the investments cover insurance liabilities","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 17 measures insurance contracts; financial assets follow IFRS 9 (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"IFRS 13 alone, which sets all measurement methods","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 defines the measurement of fair value, but the classification and measurement of financial assets fall under IFRS 9 (IFRS 17).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS17.000137","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.INTERACTIONS.IFRS9"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"LIFE","tested_point":"IFRS9_INVESTMENT_COMPONENT_TF","difficulty":"INTERMEDIATE","estimated_time_s":35,"lesson_id":"LS.IFRS17.000016","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000016","section_id":"rule-ifrs9"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"A distinct investment component of an insurance contract is separated from the contract and accounted for under IFRS 9.","es":""},"explanation":{"fr":"","en":"Distinct investment components are separated and follow IFRS 9; a component that is not distinct remains in the contract (IFRS 17).","es":""},"common_error":{"fr":"","en":"Separating every investment component: only a distinct one is separated; the others stay in the contract.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000138","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.INTERACTIONS.IFRS15"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"IFRS15_WARRANTY_OR_INSURANCE","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS17.000016","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000016","section_id":"rule-ifrs15"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"Électro-Mistral sells a washing machine with a two-year warranty granted by itself, and separately offers an accidental damage insurance contract issued by an insurance company. Which statement is correct?","es":""},"explanation":{"fr":"","en":"The seller’s warranty is excluded from IFRS 17 (it falls under IFRS 15, to which IFRS 17 refers); the insurance contract of a third-party company falls under IFRS 17 for its issuer (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Both fall under IFRS 17, because both cover breakdowns of the same appliance during the period","es":""},"correct":false,"feedback":{"fr":"","en":"The warranty granted by the seller at the time of sale is excluded from IFRS 17 (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"Both are excluded from IFRS 17, because both are sold with or around the sale of the washing machine","es":""},"correct":false,"feedback":{"fr":"","en":"The insurance contract issued by a company transfers insurance risk: it falls under IFRS 17 for the issuer (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"Neither falls under a standard, because the amounts are small","es":""},"correct":false,"feedback":{"fr":"","en":"The amount does not determine the applicable standard (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"The seller’s warranty is excluded from IFRS 17; the insurer’s contract falls under IFRS 17","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000139","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.INTERACTIONS.IFRS15"],"dimension":"RECOGNITION","format":"TRUE_FALSE","context":"LIFE","tested_point":"IFRS15_DISTINCT_SERVICE","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS17.000016","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000016","section_id":"rule-ifrs15"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"A distinct advisory service, included in an insurance contract but also sold on its own to third parties, is separated and accounted for under IFRS 15.","es":""},"explanation":{"fr":"","en":"Promises of distinct goods or services are separated from the insurance contract and follow IFRS 15 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Leaving a distinct service in the insurance contract: it is separated and follows IFRS 15.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000140","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.INTERACTIONS.IFRS15"],"dimension":"ANALYSIS","format":"CLASSIFICATION","context":"ROADSIDE_ASSISTANCE","tested_point":"IFRS15_CHOICE_CASE","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS17.000016","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000016","section_id":"rule-ifrs15"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"Case data for each contract. Classify: choice possible between IFRS 15 and IFRS 17, IFRS 17 mandatory, or excluded from IFRS 17 (other IFRS).","es":""},"explanation":{"fr":"","en":"A single tariff, a benefit in kind and a risk linked to the use of the service open the choice; an individualised price closes it; the seller’s warranty is excluded (IFRS 17).","es":""},"common_error":{"fr":"","en":"Leaving a choice for the contract with an individualised premium.","es":""},"format":"CLASSIFICATION","categories":[{"id":"CH","text":{"fr":"","en":"Choice possible","es":""}},{"id":"I17","text":{"fr":"","en":"IFRS 17 mandatory","es":""}},{"id":"EXCL","text":{"fr":"","en":"Excluded from IFRS 17 (other IFRS)","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Roadside assistance subscription at a single tariff for all, benefit in kind, risk linked to the use of the service","es":""},"category":"CH"},{"id":"i2","text":{"fr":"","en":"Breakdown contract whose premium is set according to each subscriber’s accident history","es":""},"category":"I17"},{"id":"i3","text":{"fr":"","en":"Warranty of proper operation granted by the manufacturer at the time of sale","es":""},"category":"EXCL"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000141","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.INTERACTIONS.IAS37"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"IAS37_BOUNDARY","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IFRS17.000016","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000016","section_id":"rule-others"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"Classify each obligation according to the standard that measures it: IFRS 17 or IAS 37.","es":""},"explanation":{"fr":"","en":"Obligations under an insurance contract within the scope are measured under IFRS 17; the insurer’s other obligations fall under the appropriate standards, including IAS 37 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Applying IFRS 17 to all of the insurer's obligations: only those under in-scope insurance contracts fall within it.","es":""},"format":"CLASSIFICATION","categories":[{"id":"I17","text":{"fr":"","en":"IFRS 17","es":""}},{"id":"I37","text":{"fr":"","en":"IAS 37","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Indemnity due to a policyholder under an insurance policy issued","es":""},"category":"I17"},{"id":"i2","text":{"fr":"","en":"Provision for a commercial dispute with an IT services supplier","es":""},"category":"I37"},{"id":"i3","text":{"fr":"","en":"Incurred claim not yet settled under an insurance contract within the scope","es":""},"category":"I17"},{"id":"i4","text":{"fr":"","en":"Provision for restoring a head office leased by the insurer","es":""},"category":"I37"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000142","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.INTERACTIONS.IAS37"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"IAS37_SCOPE_JUDGMENT","difficulty":"ADVANCED","estimated_time_s":65,"lesson_id":"LS.IFRS17.000016","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000016","section_id":"judgment"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"An insurer receives a claim from a third party unrelated to any policy it has issued (liability for an incident in its offices). Which standard measures the potential obligation?","es":""},"explanation":{"fr":"","en":"The obligation, unrelated to any insurance contract issued, falls under IAS 37 (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 17, because the entity is an insurer","es":""},"correct":false,"feedback":{"fr":"","en":"Being an insurer does not decide: what counts is the source of the obligation, an insurance contract within the scope (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"IAS 37, because the obligation does not arise from an insurance contract within the scope","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IFRS 9, because it is a financial liability","es":""},"correct":false,"feedback":{"fr":"","en":"A claim for an incident on premises is not a financial instrument (IFRS 17).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS17.000143","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.INTERACTIONS.IFRS13_CONTEXT"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"LIFE","tested_point":"IFRS13_ROLE","difficulty":"INTERMEDIATE","estimated_time_s":55,"lesson_id":"LS.IFRS17.000016","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000016","section_id":"rule-others"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"In the fair value transition approach, what is the role of IFRS 13?","es":""},"explanation":{"fr":"","en":"IFRS 13 provides the measurement of the fair value of the group; the margin is the difference from the fulfilment cash flows (IFRS 17).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It sets the discount rate to use in the group’s fulfilment cash flows at transition","es":""},"correct":false,"feedback":{"fr":"","en":"The discount rate for fulfilment cash flows is an IFRS 17 matter; IFRS 13 measures fair value (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"It gives the margin of the group directly, with no comparison with the fulfilment cash flows","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 measures fair value, but the margin is the difference between that fair value and the fulfilment cash flows measured under IFRS 17 (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"It measures the group’s fair value, from which fulfilment cash flows are deducted","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000144","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.INTERACTIONS.IFRS13_CONTEXT"],"dimension":"ANALYSIS","format":"CLASSIFICATION","context":"LIFE","tested_point":"IFRS13_DATA_IDENTIFICATION","difficulty":"ADVANCED","estimated_time_s":65,"lesson_id":"LS.IFRS17.000016","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000016","section_id":"rule-others"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"In the case of fair value transition of a group, classify each item according to whether it comes from IFRS 13 (measurement) or IFRS 17 (calculation of the margin).","es":""},"explanation":{"fr":"","en":"Fair value comes from IFRS 13; the fulfilment cash flows and the margin are IFRS 17 elements (IFRS 17).","es":""},"common_error":{"fr":"","en":"Attributing the margin calculation to IFRS 13: IFRS 13 measures fair value; IFRS 17 computes fulfilment cash flows and the margin.","es":""},"format":"CLASSIFICATION","categories":[{"id":"I13","text":{"fr":"","en":"Measurement under IFRS 13","es":""}},{"id":"I17","text":{"fr":"","en":"Calculation under IFRS 17","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Fair value of the group of €50,000","es":""},"category":"I13"},{"id":"i2","text":{"fr":"","en":"Fulfilment cash flows of the group of €42,000","es":""},"category":"I17"},{"id":"i3","text":{"fr":"","en":"Margin at transition of €8,000","es":""},"category":"I17"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000145","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.INTERACTIONS.TRG_CONTEXT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"TRG_STATUS","difficulty":"INTERMEDIATE","estimated_time_s":35,"lesson_id":"LS.IFRS17.000016","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000016","section_id":"rule-trg"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"A Transition Resource Group paper is a requirement of IFRS 17 on the same footing as the text of the standard.","es":""},"explanation":{"fr":"","en":"Transition Resource Group papers explain the application of the standard; they are never a requirement.","es":""},"common_error":{"fr":"","en":"Treating an explanation as a rule.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS17.000146","source":"V2","standard_id":"IFRS17","concept_ids":["IFRS17.INTERACTIONS.TRG_CONTEXT"],"dimension":"DOCUMENTATION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"TRG_REQUIREMENT_VS_EXPLANATION","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IFRS17.000016","review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000016","section_id":"rule-trg"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"Classify each statement according to whether it is a requirement of the standard, a Transition Resource Group explanation, or an entity practice.","es":""},"explanation":{"fr":"","en":"Equal allocation between units is in the standard; a Resource Group paper sheds light on an application; the sum insured is an entity’s choice (IFRS 17, para. B119).","es":""},"common_error":{"fr":"","en":"Presenting an entity practice or a resource group explanation as a requirement of the standard.","es":""},"format":"CLASSIFICATION","categories":[{"id":"REQ","text":{"fr":"","en":"Requirement of the standard","es":""}},{"id":"TRG","text":{"fr":"","en":"Resource Group explanation","es":""}},{"id":"PRA","text":{"fr":"","en":"Entity practice","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The margin is allocated equally between coverage units provided and expected","es":""},"category":"REQ"},{"id":"i2","text":{"fr":"","en":"A paper discusses how entities might define the coverage unit","es":""},"category":"TRG"},{"id":"i3","text":{"fr":"","en":"Our group adopts the sum insured as the coverage unit for its death contracts","es":""},"category":"PRA"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000001","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.CONTRACTS_IN_SCOPE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000001","tested_point":"QST.IFRS17.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000001","section_id":"understand"},"references":["IFRS 17 §3"],"exercise":{"prompt":{"fr":"","en":"Marelle SA issues investment contracts with discretionary participation features, but it does not issue insurance contracts; these investment contracts fall within IFRS 17.","es":""},"explanation":{"fr":"","en":"The standard applies to insurance contracts (including reinsurance contracts) that the entity issues, to reinsurance contracts that it holds, and to investment contracts with discretionary participation features that it issues if it also issues insurance contracts (IFRS 17, para. 3). Marelle does not meet this condition. Trap: Believing that every investment contract with discretionary participation features falls within the scope of the standard. Rule to remember: Investment contracts with discretionary participation features fall within IFRS 17 if the issuer also issues insurance contracts (IFRS 17, para. 3).","es":""},"common_error":{"fr":"","en":"Extending the scope of the standard to all investment contracts with discretionary participation features, without checking whether the issuer also issues insurance contracts.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000002","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.CONTRACTS_IN_SCOPE"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000002","tested_point":"QST.IFRS17.000002","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000001","section_id":"understand"},"references":["IFRS 17 §3"],"exercise":{"prompt":{"fr":"","en":"Alvéa SA issues insurance contracts. It has also entered into a treaty with a reinsurer that reimburses it for part of the claims of its portfolio. Under the scope of IFRS 17, how should this treaty be analysed from Alvéa's point of view?","es":""},"explanation":{"fr":"","en":"The scope of the standard has three categories: insurance contracts (including reinsurance contracts) issued, reinsurance contracts held and, subject to a condition, investment contracts with discretionary participation features issued (IFRS 17, para. 3). The treaty that Alvéa entered into to be reimbursed for part of its claims is a reinsurance contract held. Trap: Reserving the standard for the issuer of the contract. Rule to remember: Reinsurance contracts held fall within the scope of the standard (IFRS 17, para. 3).","es":""},"common_error":{"fr":"","en":"Reserving the standard for the issuer of the contract and setting aside the reinsurance contract held by the cedant.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is outside the standard: the standard targets the reinsurer that issues the contract, not the cedant that holds it.","es":""},"correct":false,"feedback":{"fr":"","en":"The scope of the standard is not limited to the issuer: it also covers reinsurance contracts held by the entity (IFRS 17, para. 3). Alvéa, which holds the treaty, must therefore analyse it with the standard. Rule to remember: A reinsurance contract held falls within the standard (IFRS 17, para. 3).","es":""}},{"id":"B","text":{"fr":"","en":"It falls within the standard as a reinsurance contract that the entity holds.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It falls within the standard as an insurance contract issued, since it covers claims of Alvéa's portfolio.","es":""},"correct":false,"feedback":{"fr":"","en":"Alvéa does not issue this treaty: the reinsurer issues it and treats it as an insurance contract issued. For Alvéa, the treaty is a reinsurance contract held, a separate category of the scope of the standard (IFRS 17, para. 3). Rule to remember: Held is not the same as issued (IFRS 17, para. 3).","es":""}},{"id":"D","text":{"fr":"","en":"It is outside the standard and follows the rules for derivative financial instruments.","es":""},"correct":false,"feedback":{"fr":"","en":"The treaty transfers insurance risk: classifying it among derivatives loses sight of the fact that it is expressly within the scope of the standard as a reinsurance contract held (IFRS 17, para. 3). Rule to remember: The cession treaty falls within the standard, not within derivatives (IFRS 17, para. 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000003","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000003","tested_point":"QST.IFRS17.000003","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000002","section_id":"rule-exclusions"},"references":["IFRS 17 §7"],"exercise":{"prompt":{"fr":"","en":"A company manufactures sofas and grants its customers a warranty on those it sells. How is this warranty treated under IFRS 17?","es":""},"explanation":{"fr":"","en":"Warranties granted by a manufacturer, dealer or retailer in connection with the sale of its goods or services are excluded from the scope of the standard (IFRS 17, para. 7); other IFRS deal with them (IFRS 15, to which IFRS 17 refers; IFRS 15 applies IAS 37 to a pure assurance-type warranty). The warranty on the sofas sold is such a case. Trap: Calling any warranty that covers a risk insurance. Rule to remember: A warranty granted on the sale of the entity's own goods is excluded from IFRS 17 (IFRS 17).","es":""},"common_error":{"fr":"","en":"Treating the manufacturer's warranty as an insurance contract because it covers a risk.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It falls within IFRS 17, like any contract that covers the risk of a defect in a good sold.","es":""},"correct":false,"feedback":{"fr":"","en":"The risk of a defect in a good sold is not enough to bring a manufacturer's warranty within the standard: that warranty, granted on the sale of its own goods, is expressly excluded (IFRS 17). Rule to remember: The manufacturer's warranty on its own goods is excluded (IFRS 17).","es":""}},{"id":"B","text":{"fr":"","en":"It falls within IFRS 17 because the company bears a risk, even though it does not sell insurance.","es":""},"correct":false,"feedback":{"fr":"","en":"Bearing a risk does not make the warranty an insurance contract within the meaning of the standard: the exclusion targets precisely the warranty granted by the manufacturer on the sale of its goods (IFRS 17). Rule to remember: The exclusion does not depend on whether a risk is borne (IFRS 17).","es":""}},{"id":"C","text":{"fr":"","en":"It is excluded from IFRS 17 but falls under no other IFRS, because it is part of the sale.","es":""},"correct":false,"feedback":{"fr":"","en":"Being excluded from IFRS 17 does not mean escaping every standard: the manufacturer's obligation exists and other IFRS account for it (IFRS 15, to which IFRS 17 refers; IFRS 15 applies IAS 37 to a pure assurance-type warranty) (IFRS 17). Rule to remember: Manufacturer's warranty: excluded from IFRS 17, dealt with by other IFRS (IFRS 17).","es":""}},{"id":"D","text":{"fr":"","en":"It is excluded from the scope of IFRS 17 and falls under other IFRS, depending on its nature.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000004","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000004","tested_point":"QST.IFRS17.000004","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000002","section_id":"rule-exclusions"},"references":["IFRS 17 §7"],"exercise":{"prompt":{"fr":"","en":"Which statements about the exclusions from the scope of IFRS 17 are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"The exclusions from the scope include warranties granted by a manufacturer, dealer or retailer on the sale of its goods or services, and, unless the issuer makes an irrevocable election, financial guarantee contracts (IFRS 17, para. 7). For the seller’s warranty, other IFRS apply (IFRS 15, to which IFRS 17 refers; IFRS 15 applies IAS 37 to a pure assurance-type warranty). Trap: Inventing a duration criterion or allowing a revocable election. Rule to remember: Seller's warranty on its own goods: excluded; financial guarantee: excluded unless an irrevocable election is made (IFRS 17, para. 7).","es":""},"common_error":{"fr":"","en":"Adding a duration condition to the excluded warranties or believing that the election on financial guarantees is renewed.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The issuer of a financial guarantee contract may change every year the standard it applies to it.","es":""},"correct":false,"feedback":{"fr":"","en":"The issuer's election is irrevocable: once made, it cannot be changed from one year to the next to move to the other standard (IFRS 17, para. 7). The annual flexibility described does not exist. Rule to remember: The election on financial guarantees is irrevocable (IFRS 17, para. 7).","es":""}},{"id":"B","text":{"fr":"","en":"A financial guarantee contract is excluded, unless its issuer irrevocably elects to apply IFRS 17.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A retailer that grants a warranty on the sale of its own goods is in the same position as the manufacturer.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A manufacturer's warranty falls within IFRS 17 once its duration exceeds one year.","es":""},"correct":false,"feedback":{"fr":"","en":"The duration of the warranty is not the criterion of the exclusion: it depends on who grants the warranty and on the occasion, the sale of its own goods or services (IFRS 17, para. 7). Rule to remember: The criterion is the grantor and the occasion of the warranty, not its duration (IFRS 17, para. 7).","es":""}},{"id":"E","text":{"fr":"","en":"A warranty granted by a manufacturer on the sale of its goods is excluded from IFRS 17 and falls under other IFRS.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000005","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.OPTIONAL_SCOPE_CHOICES"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000005","tested_point":"QST.IFRS17.000005","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000002","section_id":"rule-choice"},"references":["IFRS 17 §8"],"exercise":{"prompt":{"fr":"","en":"Dépannex SA sells an annual roadside assistance package at the same price to all its customers, whatever their risk profile (case data). When a breakdown occurs, it provides a repair service in kind and pays no cash; the insurance risk arises mainly from the customer's use of the service. What may Dépannex do under the scope of IFRS 17?","es":""},"explanation":{"fr":"","en":"An entity may choose to apply the standard on revenue or IFRS 17 to certain fixed-fee service contracts, if it does not set the price according to the customer's risk, if the contract provides services rather than cash and if the insurance risk arises mainly from the customer's use of the services (IFRS 17, para. 8). These three conditions are met in the case. Trap: Believing that the choice does not exist for a fixed-price contract. Rule to remember: Choice possible if the price does not follow the risk, if the contract provides services and if the risk comes from their use (IFRS 17, para. 8).","es":""},"common_error":{"fr":"","en":"Imposing IFRS 17 or the revenue standard without checking the three conditions of the choice.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Choose to apply to these contracts either the standard on revenue from contracts with customers or IFRS 17.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Apply IFRS 17, the choice being reserved for contracts that provide for settlement in cash.","es":""},"correct":false,"feedback":{"fr":"","en":"The condition concerns the nature of what is provided: the contract must provide services rather than cash. Here the service is provided in kind, which supports the choice (IFRS 17, para. 8). Rule to remember: Services rather than cash (IFRS 17, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"Apply the standard on revenue from contracts with customers, because a fixed price rules out any insurance risk.","es":""},"correct":false,"feedback":{"fr":"","en":"A fixed price does not rule out insurance risk: the standard on the contrary provides a choice for fixed-fee service contracts whose risk arises from the customer's use of the service (IFRS 17, para. 8). Rule to remember: The fixed price is a condition of the choice, not its exclusion (IFRS 17, para. 8).","es":""}},{"id":"D","text":{"fr":"","en":"Choose the standard, provided that the price of each package is set according to the customer's own risk.","es":""},"correct":false,"feedback":{"fr":"","en":"The condition runs the other way: the choice assumes that the entity does not set the price according to the customer's risk (IFRS 17, para. 8). A price varied with the risk profile would take the contract outside the choice regime. Rule to remember: Price not set according to the customer's risk (IFRS 17, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000006","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.INSURANCE_RISK"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000006","tested_point":"QST.IFRS17.000006","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000001","section_id":"rule-definition"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"A contract under which the issuer accepts significant insurance risk from the policyholder by agreeing to compensate the policyholder if a specified uncertain future event adversely affects the policyholder is an insurance contract under IFRS 17.","es":""},"explanation":{"fr":"","en":"An insurance contract is a contract under which one party, the issuer, accepts significant insurance risk from another party, the policyholder, by agreeing to compensate the policyholder if a specified uncertain future event, the insured event, adversely affects the policyholder (IFRS 17, Appendix A). The contract described has every element of the definition. Trap: Looking for another criterion, such as the legal form or the name of the contract. Rule to remember: Significant insurance risk accepted + compensation on an uncertain event = insurance contract (IFRS 17, Appendix A).","es":""},"common_error":{"fr":"","en":"Requiring a criterion foreign to the definition, such as the name of the contract.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000007","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.INSURANCE_RISK"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000007","tested_point":"QST.IFRS17.000007","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000001","section_id":"rule-definition"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"How does the definition of an insurance contract characterise insurance risk?","es":""},"explanation":{"fr":"","en":"Insurance risk is a risk other than financial risk, transferred from the policyholder to the issuer of the contract (IFRS 17, Appendix A). It is the risk linked to the uncertain future event that may adversely affect the policyholder. Trap: Confusing insurance risk with a financial risk or with any risk borne by the issuer. Rule to remember: Insurance risk: other than financial, transferred from the policyholder to the issuer (IFRS 17, Appendix A).","es":""},"common_error":{"fr":"","en":"Equating insurance risk with a financial risk or with any risk weighing on the issuer.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a financial risk linked to prices and rates, transferred from the policyholder to the issuer of the contract.","es":""},"correct":false,"feedback":{"fr":"","en":"The definition says the opposite: insurance risk is a risk other than financial risk. A risk linked to prices and rates is a financial risk, which does not by itself constitute the insurance risk concerned (IFRS 17, Appendix A). Rule to remember: Insurance risk = risk other than financial risk (IFRS 17, Appendix A).","es":""}},{"id":"B","text":{"fr":"","en":"As any risk that the issuer bears, whether or not it comes from the policyholder of the contract.","es":""},"correct":false,"feedback":{"fr":"","en":"Insurance risk is the risk transferred from the policyholder to the issuer. A risk that the issuer bears for other reasons, with no transfer by the policyholder, does not meet the definition (IFRS 17, Appendix A). Rule to remember: The risk must be transferred by the policyholder (IFRS 17, Appendix A).","es":""}},{"id":"C","text":{"fr":"","en":"As a risk other than financial risk, transferred from the policyholder to the issuer of the contract.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"As the risk that the policyholder does not pay premiums to the issuer of the contract.","es":""},"correct":false,"feedback":{"fr":"","en":"Non-payment of premiums is a risk that the issuer bears towards the policyholder, but it is not the risk transferred by the policyholder under the definition (IFRS 17, Appendix A). Rule to remember: Insurance risk is transferred from the policyholder to the issuer (IFRS 17, Appendix A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000008","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.INSURANCE_RISK"],"dimension":"ANALYSIS","context":"V1_QST.IFRS17.000008","tested_point":"QST.IFRS17.000008","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000001","section_id":"rule-definition"},"references":["IFRS 17"],"exercise":{"prompt":{"fr":"","en":"A trainee classifies the risks of a life insurance contract that pays a lump sum on the policyholder's death. The trainee writes: \"The policyholder's death is a financial risk transferred to the issuer, because it results in a cash payment; so there is no insurance risk.\" What is the error in this reasoning?","es":""},"explanation":{"fr":"","en":"Insurance risk is a risk other than financial risk, transferred from the policyholder to the issuer, who agrees to compensate the policyholder if a specified uncertain future event adversely affects the policyholder (IFRS 17, Appendix A). Death is a non-financial event: paying cash does not make it a financial risk. Trap: Deducing the nature of the risk from the means of settlement. Rule to remember: The risk is characterised by the insured event, not by the means of payment (IFRS 17, Appendix A).","es":""},"common_error":{"fr":"","en":"Calling a risk financial because the compensation is paid in cash.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It forgets that the sum paid on death must be discounted before being compared with the premiums.","es":""},"correct":false,"feedback":{"fr":"","en":"The trainee is wrong about the nature of the risk, not about discounting: the question is whether the risk is insurance risk or financial risk, which the definition of insurance risk decides (IFRS 17, Appendix A). Rule to remember: Insurance risk is a risk other than financial risk (IFRS 17, Appendix A).","es":""}},{"id":"B","text":{"fr":"","en":"It confuses the issuer and the policyholder, since the risk of death is borne by the policyholder, not by the issuer.","es":""},"correct":false,"feedback":{"fr":"","en":"The policyholder's death is precisely a risk transferred from the policyholder to the issuer, who agrees to pay the lump sum; the trainee's reasoning does not confuse the parties, it mischaracterises the risk (IFRS 17, Appendix A). Rule to remember: Insurance risk is transferred from the policyholder to the issuer (IFRS 17, Appendix A).","es":""}},{"id":"C","text":{"fr":"","en":"It judges the nature of the risk by the means of payment, whereas death is a non-financial event that creates insurance risk.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It applies the definition of an insurance contract to a certain event, whereas death is not one.","es":""},"correct":false,"feedback":{"fr":"","en":"The definition refers to an uncertain future event; the uncertainty may concern whether it occurs or when. The trainee does not invoke the certainty of the event: the error is to classify the risk as financial (IFRS 17, Appendix A). Rule to remember: The error concerns the nature of the risk (IFRS 17, Appendix A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000009","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.SIGNIFICANT_INSURANCE_RISK"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000009","tested_point":"QST.IFRS17.000009","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000001","section_id":"rule-significant"},"references":["IFRS 17 §B18","IFRS 17 §B19","IFRS 17 §B22"],"exercise":{"prompt":{"fr":"","en":"A savings contract provides that on the policyholder's death the issuer pays the account balance plus an additional lump sum of 50,000 euros. In the scenario studied, which has commercial substance (case assumption), the additional sum clearly exceeds the present value of the fees collected by the issuer, which therefore suffers a loss in present value on this contract. What is concluded about the insurance risk?","es":""},"explanation":{"fr":"","en":"Insurance risk is significant if there is a scenario with commercial substance in which the insured event requires the issuer to pay significant additional amounts, with a loss in present value for this contract (IFRS 17, paras. B18, B19 and B22). The case gives an additional sum of 50,000 that clearly exceeds the present value of the fees: the elements of the rule are met. Professional judgement: the commercial substance of the scenario is a case assumption. Trap: Measuring the loss at nominal value or requiring a majority scenario. Rule to remember: Scenario with commercial substance + significant additional amounts + loss in present value (IFRS 17, paras. B18, B19 and B22).","es":""},"common_error":{"fr":"","en":"Requiring the scenario to be the most likely one or measuring the loss without discounting.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is significant: a scenario with commercial substance requires the issuer to pay significant additional amounts, with a loss in present value.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is not significant: the issuer's possible loss should be measured at nominal value and not at present value, since the additional sum is paid at an uncertain date.","es":""},"correct":false,"feedback":{"fr":"","en":"The relevant loss is a loss in present value for this contract, not at nominal value: that is precisely the criterion of the rule (IFRS 17, paras. B18, B19 and B22). The case does describe a loss in present value. Rule to remember: Loss in present value for this contract (IFRS 17, paras. B18, B19 and B22).","es":""}},{"id":"C","text":{"fr":"","en":"It is not significant, because the death scenario does not occur in most cases and the issuer collects fees every year of the contract.","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion is not frequency: the rule requires a scenario with commercial substance in which the issuer pays significant additional amounts, without requiring that it be the majority case (IFRS 17, paras. B18, B19 and B22). Rule to remember: One scenario is enough, if it has commercial substance (IFRS 17, paras. B18, B19 and B22).","es":""}},{"id":"D","text":{"fr":"","en":"It is significant as soon as an uncertain future event is specified, without examining the additional amounts paid or the issuer's loss.","es":""},"correct":false,"feedback":{"fr":"","en":"Specifying an uncertain future event is not enough: significance requires significant additional amounts in a scenario with commercial substance, with a loss in present value (IFRS 17, paras. B18, B19 and B22). Rule to remember: The amounts and the loss must be examined (IFRS 17, paras. B18, B19 and B22).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000011","standard_id":"IFRS17","concept_ids":["IFRS17.SCOPE.COMBINATION_SEPARATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000011","tested_point":"QST.IFRS17.000011","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000002","section_id":"rule-separation"},"references":["IFRS 17 §9","IFRS 17 §10"],"exercise":{"prompt":{"fr":"","en":"Which statements about combining contracts and separating components are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"A set or series of contracts entered into with the same counterparty or related parties is treated as a whole when the overall commercial effect requires it (IFRS 17, para. 9). An entity separates from an insurance contract embedded derivatives to be separated under IFRS 9, distinct investment components (under IFRS 9) and promises to transfer distinct goods or services (under the revenue standard) (IFRS 17, para. 10). Trap: Leaving in the insurance contract a component that must be separated. Rule to remember: Combine according to the overall effect; separate derivatives, distinct investment components and distinct goods or services (IFRS 17, paras. 9 and 10).","es":""},"common_error":{"fr":"","en":"Keeping a distinct good or service in the insurance contract, or analysing inseparable contracts separately.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Contracts entered into with the same counterparty are each analysed in isolation, even if their overall commercial effect cannot be separated.","es":""},"correct":false,"feedback":{"fr":"","en":"Isolated analysis does not hold where the overall commercial effect can be understood only for the contracts as a whole: the rule then requires the whole to be treated as one (IFRS 17, para. 9). Rule to remember: Overall commercial effect prevails over isolated analysis (IFRS 17, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"An embedded derivative that IFRS 9 requires to be separated is separated from the insurance contract and follows IFRS 9.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A distinct investment component is separated from the insurance contract and follows IFRS 9.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A set or series of contracts entered into with the same counterparty or related parties is treated as a whole when their overall commercial effect requires it.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A promise to transfer distinct goods or services stays in the insurance contract and is measured with the fulfilment cash flows of IFRS 17.","es":""},"correct":false,"feedback":{"fr":"","en":"A promise to transfer distinct goods or services is separated from the insurance contract and falls under the standard on revenue from contracts with customers, not under the fulfilment cash flows of IFRS 17 (IFRS 17, para. 10). Rule to remember: Distinct goods or services are separated (IFRS 17, para. 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000012","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.PORTFOLIOS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000012","tested_point":"QST.IFRS17.000012","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-portfolio"},"references":["IFRS 17 §14"],"exercise":{"prompt":{"fr":"","en":"An insurer places in a single portfolio contracts exposed to very different risks, on the ground that they are managed together by the same department; this construction of the portfolio complies with IFRS 17.","es":""},"explanation":{"fr":"","en":"An entity identifies portfolios of insurance contracts: contracts exposed to similar risks and managed together (IFRS 17, para. 14). The two conditions go together; joint management does not make up for very different risks. Trap: Building portfolios from the internal organisation alone. Rule to remember: Portfolio = similar risks + joint management (IFRS 17, para. 14).","es":""},"common_error":{"fr":"","en":"Grouping contracts by the managing department without checking the similarity of the risks.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000013","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.PORTFOLIOS"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000013","tested_point":"QST.IFRS17.000013","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-portfolio"},"references":["IFRS 17 §14"],"exercise":{"prompt":{"fr":"","en":"Axiome SA manages in a single team two ranges of motor third-party liability contracts whose risks are judged similar, and a range of death cover contracts whose risks differ (case assumptions). Which grouping into portfolios complies with the rule?","es":""},"explanation":{"fr":"","en":"Portfolios comprise contracts exposed to similar risks and managed together (IFRS 17, para. 14). In the case, the two motor ranges meet both conditions and form one portfolio; the death cover range, with different risks, forms another (case assumptions). Trap: Combining all the ranges because a single team manages them. Rule to remember: A portfolio brings together similar risks managed together (IFRS 17, para. 14).","es":""},"common_error":{"fr":"","en":"Building a single portfolio because management is joint, without looking at the similarity of the risks.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A single portfolio, because the three ranges are managed by the same team.","es":""},"correct":false,"feedback":{"fr":"","en":"Joint management is not enough: a portfolio also requires similar risks, and the death cover range has risks different from those of the motor ranges (IFRS 17, para. 14). Rule to remember: Similar risks and joint management (IFRS 17, para. 14).","es":""}},{"id":"B","text":{"fr":"","en":"Three portfolios, one per range, because each range has its own tariffs.","es":""},"correct":false,"feedback":{"fr":"","en":"Tariffs specific to each range do not separate two ranges with similar risks managed together: they belong to the same portfolio (IFRS 17, para. 14). Rule to remember: The tariff is not the criterion of the portfolio (IFRS 17, para. 14).","es":""}},{"id":"C","text":{"fr":"","en":"Two portfolios: the death cover range with one motor range, according to the size of premiums.","es":""},"correct":false,"feedback":{"fr":"","en":"The size of premiums is not a criterion of the rule: contracts exposed to similar risks and managed together are grouped, which separates the death cover range from the motor ranges (IFRS 17, para. 14). Rule to remember: The criterion is the risk, not the amount of premiums (IFRS 17, para. 14).","es":""}},{"id":"D","text":{"fr":"","en":"Two portfolios: the two motor ranges together, the death cover range separately.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000014","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.PROFITABILITY_GROUPS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000014","tested_point":"QST.IFRS17.000014","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-groups"},"references":["IFRS 17 §16"],"exercise":{"prompt":{"fr":"","en":"Into which minimum groups does IFRS 17 require a portfolio of insurance contracts to be divided?","es":""},"explanation":{"fr":"","en":"An entity divides a portfolio into at least three groups: contracts that are onerous on initial recognition, contracts with no significant possibility of becoming onerous afterwards and the remaining contracts (IFRS 17, para. 16). The criterion is expected profitability on initial recognition. Trap: Dividing by duration, premium method or cancellations. Rule to remember: Three minimum groups: onerous, no significant possibility of becoming so, remaining (IFRS 17, para. 16).","es":""},"common_error":{"fr":"","en":"Dividing the portfolio by duration or payment method instead of expected profitability.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Contracts of under one year, contracts of one to three years, and contracts of more than three years of coverage period, according to the coverage period set in the contract.","es":""},"correct":false,"feedback":{"fr":"","en":"The coverage period is not the criterion for dividing into groups: the rule distinguishes contracts according to their expected profitability, on initial recognition and afterwards (IFRS 17, para. 16). Rule to remember: Groups follow expected profitability (IFRS 17, para. 16).","es":""}},{"id":"B","text":{"fr":"","en":"Contracts that are onerous on initial recognition, contracts with no significant possibility of becoming so afterwards, and remaining contracts.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Profitable contracts, onerous contracts, and contracts cancelled before the end of coverage, the latter being dealt with separately.","es":""},"correct":false,"feedback":{"fr":"","en":"The division does not concern cancellations, and it distinguishes three groups according to the possibility of becoming onerous, not two categories, profitable and onerous, alone (IFRS 17, para. 16). Rule to remember: Three minimum groups based on profitability (IFRS 17, para. 16).","es":""}},{"id":"D","text":{"fr":"","en":"Single-premium contracts, regular-premium contracts, and variable-premium contracts.","es":""},"correct":false,"feedback":{"fr":"","en":"The way premiums are paid is not the criterion for the division: the rule uses the expected profitability of contracts on initial recognition (IFRS 17, para. 16). Rule to remember: Profitability, not the premium method, underlies the groups (IFRS 17, para. 16).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000015","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.PROFITABILITY_GROUPS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS17.000015","tested_point":"QST.IFRS17.000015","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-groups"},"references":["IFRS 17 §16"],"exercise":{"prompt":{"fr":"","en":"An analyst writes: \"Contract no. 7 is onerous on initial recognition, but the portfolio as a whole is profitable; I will therefore place it with the remaining contracts.\" What is the error in this reasoning?","es":""},"explanation":{"fr":"","en":"An entity divides a portfolio into at least three groups, including contracts that are onerous on initial recognition (IFRS 17, para. 16). Contract no. 7 is onerous at that point: it belongs to that group, even though the portfolio as a whole is profitable. Trap: Offsetting an onerous contract against the profitability of the other contracts. Rule to remember: A contract that is onerous on initial recognition goes into the onerous group (IFRS 17, para. 16).","es":""},"common_error":{"fr":"","en":"Placing an onerous contract with profitable contracts on the ground that the portfolio is profitable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It forgets that onerous contracts are accounted for according to the profitability of the whole portfolio in which they are issued.","es":""},"correct":false,"feedback":{"fr":"","en":"The rule runs the other way: a contract that is onerous on initial recognition joins the group of onerous contracts, with no offset by the profitability of the portfolio (IFRS 17, para. 16). Rule to remember: No offset by the portfolio (IFRS 17, para. 16).","es":""}},{"id":"B","text":{"fr":"","en":"It creates a group of remaining contracts, whereas an onerous contract is classified after a year of observation.","es":""},"correct":false,"feedback":{"fr":"","en":"No one-year hindsight period is provided for: classification is made on initial recognition, based on the expected profitability of the contract (IFRS 17, para. 16). Rule to remember: Classification is made on initial recognition (IFRS 17, para. 16).","es":""}},{"id":"C","text":{"fr":"","en":"It should have created a fourth group reserved for onerous contracts of an overall profitable portfolio.","es":""},"correct":false,"feedback":{"fr":"","en":"The rule provides for at least three groups, one of which is for contracts that are onerous on initial recognition: contract no. 7 belongs there without any special fourth group (IFRS 17, para. 16). Rule to remember: Onerous contracts already have their own group (IFRS 17, para. 16).","es":""}},{"id":"D","text":{"fr":"","en":"It judges the profitability of the portfolio, whereas onerous contracts form a separate group.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000016","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.PROFITABILITY_GROUPS"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000016","tested_point":"QST.IFRS17.000016","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-groups"},"references":["IFRS 17 §16"],"exercise":{"prompt":{"fr":"","en":"On initial recognition, Norvia SA analyses three contracts of the same portfolio. Contract X: the fulfilment cash flows are a net outflow of 30 euros. Contract Y: positive margin, and the case assumptions show that even a sharp rise in claims would not make it onerous. Contract Z: positive margin, but a plausible rise in claims would make it onerous (case assessment). Which classification complies with the three minimum groups?","es":""},"explanation":{"fr":"","en":"An entity divides a portfolio into at least three groups: contracts that are onerous on initial recognition, contracts with no significant possibility of becoming onerous afterwards and the remaining contracts (IFRS 17, para. 16). X is onerous (net outflow of 30). Y has no significant possibility of becoming so (case data). Z is profitable but may become onerous: it stays in the remaining contracts. Professional judgement: assessing whether the possibility of becoming onerous is significant. Trap: Classifying a merely fragile contract among the onerous ones. Rule to remember: Onerous = onerous from initial recognition (IFRS 17, para. 16).","es":""},"common_error":{"fr":"","en":"Classifying a profitable but fragile contract in the group of onerous contracts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"X in the onerous contracts, Y in the remaining contracts, Z in the contracts with no significant possibility of becoming onerous.","es":""},"correct":false,"feedback":{"fr":"","en":"The last two groups are swapped: Y, which even a sharp rise in claims would not make onerous, is in the group with no significant possibility of becoming onerous; Z, which may become so, is among the remaining contracts (IFRS 17, para. 16). Rule to remember: No significant possibility = Y (IFRS 17, para. 16).","es":""}},{"id":"B","text":{"fr":"","en":"X in the onerous contracts, Y in the contracts with no significant possibility of becoming onerous, Z in the remaining contracts.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"X and Z in the onerous contracts, because any contract with a fragile margin is classified there, Y in the remaining contracts.","es":""},"correct":false,"feedback":{"fr":"","en":"Z is profitable on initial recognition: the group of onerous contracts is reserved for those that are onerous at that point, like X, not for those whose margin is merely fragile (IFRS 17, para. 16). Rule to remember: Onerous on initial recognition (IFRS 17, para. 16).","es":""}},{"id":"D","text":{"fr":"","en":"X, Y and Z in the remaining contracts, since the three contracts belong to the same portfolio.","es":""},"correct":false,"feedback":{"fr":"","en":"The group of remaining contracts does not absorb contracts that are onerous on initial recognition or those with no significant possibility of becoming so: each has its own group (IFRS 17, para. 16). Rule to remember: Three separate minimum groups (IFRS 17, para. 16).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000017","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.ANNUAL_COHORTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000017","tested_point":"QST.IFRS17.000017","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-cohorts"},"references":["IFRS 17 §22"],"exercise":{"prompt":{"fr":"","en":"Under IFRS 17, a single group of contracts does not include contracts issued more than one year apart, and the entity subdivides its groups where necessary to achieve this.","es":""},"explanation":{"fr":"","en":"An entity does not include in the same group contracts issued more than one year apart; it subdivides where necessary the groups already formed by profitability to achieve this (IFRS 17, para. 22). Trap: Believing that the division by profitability is enough to form the groups. Rule to remember: No contracts issued more than one year apart in the same group (IFRS 17, para. 22).","es":""},"common_error":{"fr":"","en":"Forming groups by profitability alone, without limiting the gap between issue dates.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000018","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.ANNUAL_COHORTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000018","tested_point":"QST.IFRS17.000018","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-cohorts"},"references":["IFRS 17 §22"],"exercise":{"prompt":{"fr":"","en":"Mérédis SA issued five contracts of the same profitability group as follows: on 10 January 2024, on 15 June 2024, on 3 September 2024, on 20 March 2025 and on 12 November 2025. Which of these pairs of contracts cannot be included in the same group?","es":""},"explanation":{"fr":"","en":"An entity does not include in the same group contracts issued more than one year apart (IFRS 17, para. 22). Between 10 January 2024 and 20 March 2025 the gap is fourteen months: these two contracts are in different groups. The other pairs are less than one year apart. Trap: Comparing calendar years only instead of the gap between issue dates. Rule to remember: More than one year between two contracts: separate groups (IFRS 17, para. 22).","es":""},"common_error":{"fr":"","en":"Combining in one group contracts whose issue dates are more than one year apart.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The contract of 10 January 2024 and the one of 15 June 2024.","es":""},"correct":false,"feedback":{"fr":"","en":"10 January and 15 June 2024 are about five months apart, less than one year: these two contracts can be included in the same group (IFRS 17, para. 22). Rule to remember: Less than one year apart: same group possible (IFRS 17, para. 22).","es":""}},{"id":"B","text":{"fr":"","en":"The contract of 15 June 2024 and the one of 3 September 2024.","es":""},"correct":false,"feedback":{"fr":"","en":"15 June and 3 September 2024 are less than three months apart: nothing prevents combining them in the same group under the one-year rule (IFRS 17, para. 22). Rule to remember: The obstacle is a gap of more than one year (IFRS 17, para. 22).","es":""}},{"id":"C","text":{"fr":"","en":"The contract of 10 January 2024 and the one of 20 March 2025.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The contract of 20 March 2025 and the one of 12 November 2025.","es":""},"correct":false,"feedback":{"fr":"","en":"20 March and 12 November 2025 are less than eight months apart: the pair respects the one-year limit and can be included in the same group (IFRS 17, para. 22). Rule to remember: A gap of less than one year: possible (IFRS 17, para. 22).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000019","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.ANNUAL_COHORTS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS17.000019","tested_point":"QST.IFRS17.000019","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-cohorts"},"references":["IFRS 17 §22"],"exercise":{"prompt":{"fr":"","en":"An analyst combines in a single group all onerous contracts issued between 2023 and 2026, \"to simplify administration\". What is the error in this grouping?","es":""},"explanation":{"fr":"","en":"An entity does not include in the same group contracts issued more than one year apart; it subdivides groups where necessary to achieve this (IFRS 17, para. 22). A single group for onerous contracts issued from 2023 to 2026 breaches this limit, however convenient for administration. Trap: Sacrificing the one-year limit to administrative simplicity. Rule to remember: No contracts issued more than one year apart in the same group (IFRS 17, para. 22).","es":""},"common_error":{"fr":"","en":"Building a single group of onerous contracts issued over several years to simplify administration.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It places in the same group contracts issued more than one year apart, whereas the group must be subdivided.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It should create one group per issue month, because the rule sets a monthly cohort.","es":""},"correct":false,"feedback":{"fr":"","en":"The rule does not set a monthly cohort: the limit is a gap of one year between issue dates within a group (IFRS 17, para. 22). One group per month would go beyond the requirement. Rule to remember: The limit is one year, not one month (IFRS 17, para. 22).","es":""}},{"id":"C","text":{"fr":"","en":"It measures the one-year limit on the coverage period of each contract, and not on the gap between issue dates.","es":""},"correct":false,"feedback":{"fr":"","en":"The analyst does not reason on the coverage period: she combines contracts of different issue years, and the one-year limit concerns precisely the gap between issue dates (IFRS 17, para. 22). Rule to remember: Issue dates, not coverage period (IFRS 17, para. 22).","es":""}},{"id":"D","text":{"fr":"","en":"It should have distinguished the groups by the year in which claims occur, not by the year of issue.","es":""},"correct":false,"feedback":{"fr":"","en":"Annual cohorts rest on the gap between the issue dates of the contracts, not on the year in which claims occur (IFRS 17, para. 22). Rule to remember: Issue dates, not claim occurrence (IFRS 17, para. 22).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000020","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.EU_COHORT_EXEMPTION","IFRS17.AGGREGATION.ANNUAL_COHORTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000020","tested_point":"QST.IFRS17.000020","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-cohorts"},"references":["IFRS 17","IFRS 17 §22"],"exercise":{"prompt":{"fr":"","en":"Euronia SA, an insurer established in the European Union, applies to a portfolio of contracts pooled across generations the exemption provided by Regulation (EU) 2021/2036. How is this exemption correctly characterised in relation to the annual cohort requirement?","es":""},"explanation":{"fr":"","en":"Under IASB IFRS 17, an entity does not include in the same group contracts issued more than one year apart (IFRS 17, para. 22). Regulation (EU) 2021/2036 adopts IFRS 17 in the Union and makes this requirement optional for contracts pooled across generations and cash-flow matched contracts; the entity that uses it discloses this and identifies the portfolios concerned (Regulation (EU) 2021/2036). It is a regional exception, never an option of IFRS as published by the IASB. Trap: Presenting the European exemption as a general rule of IFRS 17. Rule to remember: Annual cohort requirement for the IASB; optional exemption specific to the EU for certain contracts (Regulation (EU) 2021/2036; IASB base requirement: IFRS 17, para. 22).","es":""},"common_error":{"fr":"","en":"Presenting the European exemption as an option of IFRS 17 open to all entities.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is an option that IFRS 17, as published by the IASB, gives to any entity, whether or not established in the European Union, for the contracts it chooses.","es":""},"correct":false,"feedback":{"fr":"","en":"The annual cohort requirement appears in IFRS 17 with no general option; the exemption comes from European Union law, not from an IASB text (IFRS 17, para. 22). It therefore does not benefit an entity outside the Union. Rule to remember: European exemption, not an IASB option (Regulation (EU) 2021/2036).","es":""}},{"id":"B","text":{"fr":"","en":"It is an exception specific to the European Union for certain pooled or cash-flow matched contracts, with disclosure of the portfolios.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is an exception that removes the annual cohort requirement for all insurance contracts issued by a European entity, with no further condition.","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption is limited to certain contracts: contracts pooled across generations and cash-flow matched contracts, not all the entity's insurance contracts (Regulation (EU) 2021/2036). Rule to remember: Exemption targeted at specific contracts (Regulation (EU) 2021/2036).","es":""}},{"id":"D","text":{"fr":"","en":"It is an exception that replaces the annual cohort with a three-year cohort for the contracts concerned.","es":""},"correct":false,"feedback":{"fr":"","en":"The exemption makes the annual cohort requirement optional for the contracts concerned; it does not replace it with a longer cohort of fixed length (Regulation (EU) 2021/2036; IASB base requirement: IFRS 17, para. 22). Rule to remember: Optional, not replaced by another duration (Regulation (EU) 2021/2036).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000021","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000021","tested_point":"QST.IFRS17.000021","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000004","section_id":"rule-recognition"},"references":["IFRS 17 §25"],"exercise":{"prompt":{"fr":"","en":"Which date is used to recognise a group of insurance contracts issued?","es":""},"explanation":{"fr":"","en":"A group of contracts issued is recognised at the earliest of the following dates: the beginning of the coverage period, the date the first payment from the policyholder is due and the date the group becomes onerous (IFRS 17, para. 25). Trap: Using the last date, the signature date or the year-end. Rule to remember: Recognition at the earliest of the three dates (IFRS 17, para. 25).","es":""},"common_error":{"fr":"","en":"Using the signature date, the year-end or the latest of the dates.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The latest of these three dates (start of coverage, first payment due, group becoming onerous), so as to recognise the group once coverage has actually begun.","es":""},"correct":false,"feedback":{"fr":"","en":"The rule uses the earliest of the three dates, not the latest: waiting for the last would delay the recognition of contracts already committed (IFRS 17, para. 25). Rule to remember: The earliest of the three dates (IFRS 17, para. 25).","es":""}},{"id":"B","text":{"fr":"","en":"The date of signature of the first contract of the group, whatever the start date of coverage or the date of the first payment.","es":""},"correct":false,"feedback":{"fr":"","en":"The signature date is not one of the three dates of the rule: these are the start of coverage, the due date of the first payment and the moment the group becomes onerous (IFRS 17, para. 25). Rule to remember: Three dates, the earliest one (IFRS 17, para. 25).","es":""}},{"id":"C","text":{"fr":"","en":"The earliest of three dates: start of coverage, first payment due from the policyholder, or the group becoming onerous.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The closing date of the financial year in which the first contract of the group is issued.","es":""},"correct":false,"feedback":{"fr":"","en":"The year-end plays no part in the recognition rule: what counts are the three dates linked to coverage, the first payment and the profitability of the group (IFRS 17, para. 25). Rule to remember: The group is recognised at one of the three dates (IFRS 17, para. 25).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000022","standard_id":"IFRS17","concept_ids":["IFRS17.AGGREGATION.RECOGNITION"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000022","tested_point":"QST.IFRS17.000022","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000004","section_id":"rule-recognition"},"references":["IFRS 17 §25"],"exercise":{"prompt":{"fr":"","en":"Cosmea SA signs the contracts of a group on 2 June 2025. The coverage period starts on 1 July 2025; the first payment from a policyholder is due on 15 June 2025; the group is not onerous (case data). On which date is the group recognised?","es":""},"explanation":{"fr":"","en":"The group is recognised at the earliest of the following dates: beginning of the coverage period (1 July 2025), due date of the first payment from the policyholder (15 June 2025) and date the group becomes onerous (not relevant in the case) (IFRS 17, para. 25). The earliest is 15 June 2025. Trap: Using the signature date or the start of coverage without comparing the three dates. Rule to remember: Compare the dates and use the earliest (IFRS 17, para. 25).","es":""},"common_error":{"fr":"","en":"Using the start of coverage or the signature date instead of the earliest of the three dates.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"1 July 2025.","es":""},"correct":false,"feedback":{"fr":"","en":"1 July 2025 is the start of coverage, but the first payment is due earlier, on 15 June: the rule uses the earliest of the dates (IFRS 17, para. 25). Rule to remember: The earliest of the dates (IFRS 17, para. 25).","es":""}},{"id":"B","text":{"fr":"","en":"15 June 2025.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"2 June 2025.","es":""},"correct":false,"feedback":{"fr":"","en":"2 June 2025 is the signature date, which is not among the three dates of the rule (start of coverage, first payment due, group becoming onerous) (IFRS 17, para. 25). Rule to remember: Signature is not one of the three dates (IFRS 17, para. 25).","es":""}},{"id":"D","text":{"fr":"","en":"31 December 2025.","es":""},"correct":false,"feedback":{"fr":"","en":"31 December 2025 is a year-end, foreign to the three dates of the rule for recognising a group (IFRS 17, para. 25). Rule to remember: Just the three dates of the rule count (IFRS 17, para. 25).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000024","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.FULFILMENT_CASH_FLOWS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000024","tested_point":"QST.IFRS17.000024","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"understand"},"references":["IFRS 17 §32"],"exercise":{"prompt":{"fr":"","en":"What are the components of the fulfilment cash flows of a group of insurance contracts?","es":""},"explanation":{"fr":"","en":"The fulfilment cash flows comprise estimates of future cash flows, an adjustment that reflects the time value of money and the associated financial risk, and a risk adjustment for non-financial risk (IFRS 17, para. 32). Trap: Including in them the contractual service margin or past flows. Rule to remember: Fulfilment cash flows = future flows + discounting adjustment + risk adjustment for non-financial risk (IFRS 17, para. 32).","es":""},"common_error":{"fr":"","en":"Adding the contractual service margin to the fulfilment cash flows or confusing them with the flows of the year.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Premiums received, claims paid and the entity's overheads for the past year, as recorded in the general ledger.","es":""},"correct":false,"feedback":{"fr":"","en":"The fulfilment cash flows are forward-looking estimates, not the flows of the past year: they combine future cash flows, a discounting adjustment and a risk adjustment for non-financial risk (IFRS 17, para. 32). Rule to remember: Three forward-looking elements (IFRS 17, para. 32).","es":""}},{"id":"B","text":{"fr":"","en":"Estimates of future cash flows, the contractual service margin and a risk adjustment for non-financial risk of each contract.","es":""},"correct":false,"feedback":{"fr":"","en":"The contractual service margin is not part of the fulfilment cash flows: it is set in addition to them, so that no income arises on initial recognition (IFRS 17, para. 32). Rule to remember: The fulfilment cash flows exclude the margin (IFRS 17, para. 32).","es":""}},{"id":"C","text":{"fr":"","en":"Estimates of future cash flows, the fair value of the assets backing the group and a regulatory solvency margin.","es":""},"correct":false,"feedback":{"fr":"","en":"Neither the fair value of backing assets nor a solvency margin is among the components: the third component is the risk adjustment for non-financial risk (IFRS 17, para. 32). Rule to remember: Future flows, discounting, non-financial risk (IFRS 17, para. 32).","es":""}},{"id":"D","text":{"fr":"","en":"Estimated future cash flows, an adjustment for the time value of money and financial risk, and a risk adjustment for non-financial risk.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000025","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.FULFILMENT_CASH_FLOWS"],"dimension":"CALCULATION","context":"V1_QST.IFRS17.000025","tested_point":"QST.IFRS17.000025","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"understand"},"references":["IFRS 17 §32"],"exercise":{"prompt":{"fr":"","en":"Pavane SA measures a group of contracts on initial recognition. It expects to pay {claims_amount} of claims in two years and to receive {premium_amount} of premiums in one year. Case data, from management's judgement: the discount rate is {discount_rate} (a rate not imposed by the standard) and the risk adjustment for non-financial risk is {risk_adjustment}. Calculate the present value of the outflows, the present value of the inflows and the fulfilment cash flows of the group (a negative amount means a net inflow).","es":""},"explanation":{"fr":"","en":"Method, one flow at a time: outflows 2,205 ÷ 1.05^2 = 2,000; inflows 3,150 ÷ 1.05 = 3,000. Discounted net outflow: 2,000 − 3,000 = −1,000. Fulfilment cash flows: −1,000 + 400 = −600, a net inflow of 600 (IFRS 17, para. 32). The fulfilment cash flows combine the discounted future flows and the risk adjustment for non-financial risk. Trap: Forgetting the risk adjustment or discounting both flows over the same period. Rule to remember: Fulfilment cash flows = discounted net outflow + risk adjustment for non-financial risk (IFRS 17, para. 32).","es":""},"common_error":{"fr":"","en":"Omitting the risk adjustment or discounting the premiums over two years like the claims.","es":""},"format":"CALCULATION","placeholders":[{"id":"claims_amount","value":"2205","unit":"EUR"},{"id":"premium_amount","value":"3150","unit":"EUR"},{"id":"discount_rate","value":"5","unit":"PERCENT"},{"id":"risk_adjustment","value":"400","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Claims to be paid in two years","es":""},"value":"2205","unit":"EUR"},{"label":{"fr":"","en":"Premiums to be received in one year","es":""},"value":"3150","unit":"EUR"},{"label":{"fr":"","en":"Discount rate (case data)","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Risk adjustment for non-financial risk (case data)","es":""},"value":"400","unit":"EUR"}],"steps":[{"id":"PV_OUTFLOW","label":{"fr":"","en":"Present value of the outflows","es":""},"answer":2000,"tolerance":0,"unit":"EUR"},{"id":"PV_INFLOW","label":{"fr":"","en":"Present value of the inflows","es":""},"answer":3000,"tolerance":0,"unit":"EUR"},{"id":"FULFILMENT_CASH_FLOWS","label":{"fr":"","en":"Fulfilment cash flows of the group","es":""},"answer":-600,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PV_OUTFLOW","meaning":{"fr":"","en":"Present value of the outflows","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Claims to be paid in two years","es":""},"value":2205,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate (case data)","es":""},"value":5,"unit":"PERCENT"}],"result":2000,"unit":"EUR"},{"step":"PV_INFLOW","meaning":{"fr":"","en":"Present value of the inflows","es":""},"expression":"a / (1 + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Premiums to be received in one year","es":""},"value":3150,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate (case data)","es":""},"value":5,"unit":"PERCENT"}],"result":3000,"unit":"EUR"}],"rationale":{"fr":"","en":"Fulfilment cash flows = discounted net outflow + risk adjustment for non-financial risk (IFRS 17, para. 32).","es":""},"references":["REF.IFRS17.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000026","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.FULFILMENT_CASH_FLOWS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS17.000026","tested_point":"QST.IFRS17.000026","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"understand"},"references":["IFRS 17 §32"],"exercise":{"prompt":{"fr":"","en":"A trainee calculates the fulfilment cash flows of a group: present value of outflows of 2,000 euros, present value of inflows of 3,000 euros (case data). The trainee writes: \"Fulfilment cash flows = 2,000 − 3,000 = −1,000 euros.\" The group's risk adjustment for non-financial risk is 400 euros (case data). What is the error in this calculation?","es":""},"explanation":{"fr":"","en":"The fulfilment cash flows comprise estimates of future cash flows, an adjustment that reflects the time value of money and the associated financial risk, and a risk adjustment for non-financial risk (IFRS 17, para. 32). The trainee stops at the discounted net outflow (−1,000): adding 400 gives −600. Trap: Stopping at the discounted net outflow. Rule to remember: Fulfilment cash flows = discounted net outflow + risk adjustment for non-financial risk (IFRS 17, para. 32).","es":""},"common_error":{"fr":"","en":"Stopping at the discounted net outflow without adding the risk adjustment for non-financial risk.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It discounts the inflows, although they should not be discounted, so the correct result is −1,000 euros.","es":""},"correct":false,"feedback":{"fr":"","en":"Inflows as well as outflows are adjusted for the time value of money in the fulfilment cash flows: discounting the inflows is not the error (IFRS 17, para. 32). The trainee omits another component. Rule to remember: The time value adjustment applies to all flows (IFRS 17, para. 32).","es":""}},{"id":"B","text":{"fr":"","en":"It omits the risk adjustment for non-financial risk: the correct result is −600 euros.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It forgets to add the contractual service margin, so that the correct result is −600 euros.","es":""},"correct":false,"feedback":{"fr":"","en":"The contractual service margin does not enter the fulfilment cash flows: the component forgotten is the risk adjustment for non-financial risk, not the margin (IFRS 17, para. 32). Rule to remember: The margin is foreign to the fulfilment cash flows (IFRS 17, para. 32).","es":""}},{"id":"D","text":{"fr":"","en":"It compares present values, whereas fulfilment cash flows are calculated on nominal amounts that are not discounted.","es":""},"correct":false,"feedback":{"fr":"","en":"The present values comply with the rule, which provides for an adjustment for the time value of money in the fulfilment cash flows: the error is not there (IFRS 17, para. 32). Rule to remember: The fulfilment cash flows include the time value (IFRS 17, para. 32).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000027","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.FUTURE_CASH_FLOWS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000027","tested_point":"QST.IFRS17.000027","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"rule-estimates"},"references":["IFRS 17 §33"],"exercise":{"prompt":{"fr":"","en":"Which statements about estimates of future cash flows are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"Estimates of future cash flows are explicit, unbiased, probability-weighted, current and limited to the contract boundary (IFRS 17, para. 33). Trap: Substituting a prudent scenario for the probability weighting, or freezing the estimates. Rule to remember: Explicit, unbiased, probability-weighted, current (IFRS 17, para. 33).","es":""},"common_error":{"fr":"","en":"Using a prudent scenario or freezing the estimates at initial recognition.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are current and limited to the contract boundary.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"They use the most prudent scenario rather than a probability weighting.","es":""},"correct":false,"feedback":{"fr":"","en":"Using the most prudent scenario introduces a bias, whereas the rule requires unbiased, probability-weighted estimates (IFRS 17, para. 33). Rule to remember: Unbiased, probability-weighted (IFRS 17, para. 33).","es":""}},{"id":"C","text":{"fr":"","en":"They are unbiased and probability-weighted.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"They remain fixed at the date of initial recognition, with no update.","es":""},"correct":false,"feedback":{"fr":"","en":"Estimates are current: they reflect the conditions at the measurement date, not those of initial recognition frozen once and for all (IFRS 17, para. 33). Rule to remember: Current estimates (IFRS 17, para. 33).","es":""}},{"id":"E","text":{"fr":"","en":"They are explicit.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000028","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.DISCOUNTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000028","tested_point":"QST.IFRS17.000028","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"rule-discounting"},"references":["IFRS 17 §36"],"exercise":{"prompt":{"fr":"","en":"What do the discount rates used for the cash flows of a group of insurance contracts reflect? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"Discount rates reflect the time value of money, the characteristics of the cash flows and the liquidity of the contracts (IFRS 17, para. 36). The level of the rate is case data or a judgement, not an imposed value. Trap: Basing the rate on the return of the assets held or on profit. Rule to remember: Time value + characteristics of the flows + liquidity (IFRS 17, para. 36).","es":""},"common_error":{"fr":"","en":"Basing the rate on the return of the assets held or on a profit target.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The time value of money.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The characteristics of the group's cash flows.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The accounting profit of the year, so as to smooth the rate from one period to the next.","es":""},"correct":false,"feedback":{"fr":"","en":"The profit of the year does not enter into the determination of the rates: they reflect the time value of money, the characteristics of the flows and the liquidity of the contracts (IFRS 17, para. 36). Rule to remember: The rate is not used to smooth profit (IFRS 17, para. 36).","es":""}},{"id":"D","text":{"fr":"","en":"The expected return on the assets that the entity chooses to hold to back the liability.","es":""},"correct":false,"feedback":{"fr":"","en":"The return on the assets chosen by the entity is not an element of the rule: the rates reflect the time value, the characteristics of the flows and the liquidity of the contracts, not the composition of the assets held (IFRS 17, para. 36). Rule to remember: Time value, characteristics of the flows, liquidity (IFRS 17, para. 36).","es":""}},{"id":"E","text":{"fr":"","en":"The liquidity of the contracts.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000029","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.DISCOUNTING"],"dimension":"CALCULATION","context":"V1_QST.IFRS17.000029","tested_point":"QST.IFRS17.000029","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"rule-discounting"},"references":["IFRS 17 §36"],"exercise":{"prompt":{"fr":"","en":"Rivière SA estimates at {claims_amount} the claims it will pay in two years and at {expenses_amount} the administration costs it will pay in one year, on a group of contracts. Case data: the discount rate reflecting the time value of money is {discount_rate} (management's judgement, a rate not imposed by the standard). Calculate the present value of the claims and that of the costs, one flow at a time.","es":""},"explanation":{"fr":"","en":"Method: claims 6,050 ÷ 1.10^2 = 5,000; administration costs 1,100 ÷ 1.10 = 1,000. Each flow is discounted over its own period, at the rate that reflects the time value of money, the characteristics of the flows and the liquidity of the contracts (IFRS 17, para. 36); the 10% level is case data. Trap: Discounting both flows over the same period. Rule to remember: Discount each flow over its own period, at the case rate (IFRS 17, para. 36).","es":""},"common_error":{"fr":"","en":"Applying the same discounting period to flows that are not paid on the same date.","es":""},"format":"CALCULATION","placeholders":[{"id":"claims_amount","value":"6050","unit":"EUR"},{"id":"expenses_amount","value":"1100","unit":"EUR"},{"id":"discount_rate","value":"10","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Claims to be paid in two years","es":""},"value":"6050","unit":"EUR"},{"label":{"fr":"","en":"Administration costs to be paid in one year","es":""},"value":"1100","unit":"EUR"},{"label":{"fr":"","en":"Discount rate (case data)","es":""},"value":"10","unit":"PERCENT"}],"steps":[{"id":"PV_CLAIMS","label":{"fr":"","en":"Present value of the claims","es":""},"answer":5000,"tolerance":0,"unit":"EUR"},{"id":"PV_EXPENSES","label":{"fr":"","en":"Present value of the administration costs","es":""},"answer":1000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PV_CLAIMS","meaning":{"fr":"","en":"Present value of the claims","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Claims to be paid in two years","es":""},"value":6050,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate (case data)","es":""},"value":10,"unit":"PERCENT"}],"result":5000,"unit":"EUR"},{"step":"PV_EXPENSES","meaning":{"fr":"","en":"Present value of the administration costs","es":""},"expression":"a / (1 + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Administration costs to be paid in one year","es":""},"value":1100,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate (case data)","es":""},"value":10,"unit":"PERCENT"}],"result":1000,"unit":"EUR"}],"rationale":{"fr":"","en":"Discount each flow over its own period, at the case rate (IFRS 17, para. 36).","es":""},"references":["REF.IFRS17.36"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000030","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.RISK_ADJUSTMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000030","tested_point":"QST.IFRS17.000030","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"rule-ra"},"references":["IFRS 17 §37"],"exercise":{"prompt":{"fr":"","en":"What does the risk adjustment for non-financial risk represent in the measurement of a group of insurance contracts?","es":""},"explanation":{"fr":"","en":"The risk adjustment for non-financial risk is the compensation that the entity requires for bearing the uncertainty about the amount and timing of cash flows arising from non-financial risk (IFRS 17, para. 37). The calculation technique is not imposed by the rule: the amount is case data. Trap: Confusing it with the profit margin, discounting or financial risk. Rule to remember: Compensation for the uncertainty of flows arising from non-financial risk (IFRS 17, para. 37).","es":""},"common_error":{"fr":"","en":"Equating the risk adjustment with the profit margin or with the effect of financial risk.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The profit that the entity expects from providing services throughout the coverage period of the group of contracts.","es":""},"correct":false,"feedback":{"fr":"","en":"The profit expected from providing services corresponds to the contractual service margin, another element of the measurement, not to the risk adjustment (IFRS 17, para. 37). Rule to remember: The risk adjustment is a compensation, not the profit of the contract (IFRS 17, para. 37).","es":""}},{"id":"B","text":{"fr":"","en":"The effect of the time value of money on future cash flows, calculated at the discount rate used for the group of contracts.","es":""},"correct":false,"feedback":{"fr":"","en":"The effect of the time value of money is dealt with by discounting. The risk adjustment for non-financial risk concerns the uncertainty of the flows, not time (IFRS 17, para. 37). Rule to remember: Time and non-financial risk are two separate adjustments (IFRS 17, para. 37).","es":""}},{"id":"C","text":{"fr":"","en":"A reserve covering the risk of changes in interest rates or prices on the financial markets.","es":""},"correct":false,"feedback":{"fr":"","en":"Changes in interest rates or market prices belong to financial risk, which the risk adjustment for non-financial risk excludes by definition (IFRS 17, para. 37). Rule to remember: The adjustment concerns non-financial risk (IFRS 17, para. 37).","es":""}},{"id":"D","text":{"fr":"","en":"The compensation required for bearing the uncertainty about the amount and timing of flows arising from non-financial risk.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000031","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.RISK_ADJUSTMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000031","tested_point":"QST.IFRS17.000031","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000005","section_id":"rule-ra"},"references":["IFRS 17 §37"],"exercise":{"prompt":{"fr":"","en":"The risk adjustment for non-financial risk of a group of insurance contracts also covers the uncertainty arising from changes in the interest rates applied to future cash flows.","es":""},"explanation":{"fr":"","en":"The risk adjustment for non-financial risk is the compensation that the entity requires for bearing the uncertainty about the amount and timing of cash flows arising from non-financial risk (IFRS 17, para. 37). Changes in interest rates belong to financial risk, taken into account in the adjustment for the time value of money and financial risk, another component of the fulfilment cash flows. Trap: Confusing financial and non-financial risk. Rule to remember: The risk adjustment concerns non-financial risk (IFRS 17, para. 37).","es":""},"common_error":{"fr":"","en":"Having the risk adjustment for non-financial risk cover the effect of interest rates.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000032","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.CSM_INITIAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000032","tested_point":"QST.IFRS17.000032","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000006","section_id":"understand"},"references":["IFRS 17 §38"],"exercise":{"prompt":{"fr":"","en":"On initial recognition of a group of contracts, the contractual service margin is measured at an amount that results in no income or expenses arising from the initial recognition of the fulfilment cash flows, of the cash flows arising at that date and of the derecognition of the asset for acquisition cash flows.","es":""},"explanation":{"fr":"","en":"The contractual service margin is measured on initial recognition of a group at an amount that results in no income or expenses arising from the initial recognition of the fulfilment cash flows, of the cash flows arising at that date and of the derecognition of the asset for acquisition cash flows (IFRS 17, para. 38). For a profitable group, the margin neutralises the net inflow: there is no profit at issue. Trap: Recognising in profit or loss, at issue, the difference between inflows and outflows. Rule to remember: Initial margin = no income or expense on initial recognition (IFRS 17, para. 38).","es":""},"common_error":{"fr":"","en":"Recognising a profit at issue instead of deferring it in the margin.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000033","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.CSM_INITIAL"],"dimension":"CALCULATION","context":"V1_QST.IFRS17.000033","tested_point":"QST.IFRS17.000033","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000006","section_id":"understand"},"references":["IFRS 17 §38"],"exercise":{"prompt":{"fr":"","en":"Nadir SA recognises a group of contracts: it receives {premium_received} of premiums at issue and expects to pay {claims_amount} of claims in one year. Case data, from management's judgement: the discount rate is {discount_rate} (a rate not imposed by the standard) and the risk adjustment for non-financial risk is {risk_adjustment}. Acquisition cash flows and cash flows already occurred are nil. Calculate the net amount of the fulfilment cash flows and the premiums received at issue (a negative amount means a net inflow) and the initial contractual service margin.","es":""},"explanation":{"fr":"","en":"Method: present value of the claims 3,300 ÷ 1.10 = 3,000; discounted net outflow 3,000 − 5,000 = −2,000; net amount −2,000 + 500 = −1,500 (fulfilment cash flows of 3,500, premiums of 5,000 received at that date), a net inflow of 1,500. The margin is set so that no income or expense arises on initial recognition: it equals 1,500 (IFRS 17, para. 38). The group is therefore not onerous. Trap: Recognising the 1,500 in profit or loss at issue. Rule to remember: Initial margin = net inflow of the fulfilment cash flows and the cash flows at that date, with no income or expense at issue (IFRS 17, para. 38).","es":""},"common_error":{"fr":"","en":"Recording in profit or loss at issue the net inflow of the fulfilment cash flows instead of carrying it in the margin.","es":""},"format":"CALCULATION","placeholders":[{"id":"claims_amount","value":"3300","unit":"EUR"},{"id":"premium_received","value":"5000","unit":"EUR"},{"id":"discount_rate","value":"10","unit":"PERCENT"},{"id":"risk_adjustment","value":"500","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Claims to be paid in one year","es":""},"value":"3300","unit":"EUR"},{"label":{"fr":"","en":"Premiums received at issue","es":""},"value":"5000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate (case data)","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Risk adjustment for non-financial risk (case data)","es":""},"value":"500","unit":"EUR"}],"steps":[{"id":"FULFILMENT_CASH_FLOWS","label":{"fr":"","en":"Fulfilment cash flows and premiums received at issue (net amount)","es":""},"answer":-1500,"tolerance":0,"unit":"EUR"},{"id":"CSM","label":{"fr":"","en":"Initial contractual service margin","es":""},"answer":1500,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000035","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.ONEROUS_INITIAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000035","tested_point":"QST.IFRS17.000035","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000006","section_id":"rule-onerous"},"references":["IFRS 17 §47"],"exercise":{"prompt":{"fr":"","en":"When, on initial recognition, the sum of the fulfilment cash flows, the acquisition cash flows previously recognised and the cash flows arising at that date is a net outflow, the group is onerous, the loss is recognised in profit or loss and the contractual service margin is nil.","es":""},"explanation":{"fr":"","en":"A contract is onerous on initial recognition when the sum of the fulfilment cash flows, the acquisition cash flows previously recognised and the cash flows arising at that date is a net outflow; such contracts form a separate group; the loss is recognised in profit or loss, the liability is brought to the fulfilment cash flows and the margin is nil (IFRS 17, para. 47). Trap: Spreading the initial loss through a negative margin. Rule to remember: Net outflow at inception = immediate loss in profit or loss and nil margin (IFRS 17, para. 47).","es":""},"common_error":{"fr":"","en":"Deferring the loss of an onerous group instead of recognising it in profit or loss.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000036","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.ONEROUS_INITIAL"],"dimension":"CALCULATION","context":"V1_QST.IFRS17.000036","tested_point":"QST.IFRS17.000036","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000006","section_id":"rule-onerous"},"references":["IFRS 17 §47"],"exercise":{"prompt":{"fr":"","en":"Sablier SA recognises a group of contracts: it receives {premium_received} of premiums at issue and expects to pay {claims_amount} of claims in two years. Case data, from management's judgement: the discount rate is {discount_rate} (a rate not imposed by the standard) and the risk adjustment for non-financial risk is {risk_adjustment}. Calculate the present value of the claims, the net amount of the fulfilment cash flows and the premiums received at issue, and the loss on initial recognition.","es":""},"explanation":{"fr":"","en":"Method: present value of the claims 4,840 ÷ 1.10^2 = 4,000; discounted net outflow 4,000 − 3,500 = 500; net amount 500 + 300 = 800 (fulfilment cash flows of 4,300, premiums of 3,500 received at that date), a net outflow. The group is onerous: the loss of 800 is recognised in profit or loss and the margin is nil (IFRS 17, para. 47). Trap: Forgetting the risk adjustment or deferring the loss in a negative margin. Rule to remember: Net outflow of the fulfilment cash flows and the cash flows at that date = immediate loss of the same amount (IFRS 17, para. 47).","es":""},"common_error":{"fr":"","en":"Omitting the risk adjustment or deferring the loss of the onerous group.","es":""},"format":"CALCULATION","placeholders":[{"id":"claims_amount","value":"4840","unit":"EUR"},{"id":"premium_received","value":"3500","unit":"EUR"},{"id":"discount_rate","value":"10","unit":"PERCENT"},{"id":"risk_adjustment","value":"300","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Claims to be paid in two years","es":""},"value":"4840","unit":"EUR"},{"label":{"fr":"","en":"Premiums received at issue","es":""},"value":"3500","unit":"EUR"},{"label":{"fr":"","en":"Discount rate (case data)","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Risk adjustment for non-financial risk (case data)","es":""},"value":"300","unit":"EUR"}],"steps":[{"id":"PV_OUTFLOW","label":{"fr":"","en":"Present value of the claims","es":""},"answer":4000,"tolerance":0,"unit":"EUR"},{"id":"FULFILMENT_CASH_FLOWS","label":{"fr":"","en":"Fulfilment cash flows and premiums received at issue (net amount)","es":""},"answer":800,"tolerance":0,"unit":"EUR"},{"id":"LOSS","label":{"fr":"","en":"Loss on initial recognition","es":""},"answer":800,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PV_OUTFLOW","meaning":{"fr":"","en":"Present value of the claims","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Claims to be paid in two years","es":""},"value":4840,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate (case data)","es":""},"value":10,"unit":"PERCENT"}],"result":4000,"unit":"EUR"},{"step":"FULFILMENT_CASH_FLOWS","meaning":{"fr":"","en":"Fulfilment cash flows and premiums received at issue (net amount)","es":""},"expression":"(a - b) + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Present value of the claims","es":""},"value":4000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Premiums received at issue","es":""},"value":3500,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Risk adjustment for non-financial risk (case data)","es":""},"value":300,"unit":"EUR"}],"result":800,"unit":"EUR"}],"rationale":{"fr":"","en":"Net outflow of the fulfilment cash flows and the cash flows at that date = immediate loss of the same amount (IFRS 17, para. 47).","es":""},"references":["REF.IFRS17.47"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000038","standard_id":"IFRS17","concept_ids":["IFRS17.GMM.ACQUISITION_CASH_FLOWS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000038","tested_point":"QST.IFRS17.000038","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000006","section_id":"rule-acquisition"},"references":["IFRS 17 §28A"],"exercise":{"prompt":{"fr":"","en":"The acquisition cash flows of a group cannot give rise to an asset before the group to which they relate has been recognised.","es":""},"explanation":{"fr":"","en":"Insurance acquisition cash flows are allocated to groups using a systematic and rational method, including to future groups (IFRS 17, para. 28A); if they are paid before the group to which they relate is recognised, an entity that does not expense them recognises an asset in the meantime. Trap: Believing that the asset can arise only with the group. Rule to remember: An asset may precede the recognition of the group.","es":""},"common_error":{"fr":"","en":"Refusing any asset for acquisition cash flows until the group is recognised.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000039","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.LRC_LIC"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000039","tested_point":"QST.IFRS17.000039","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000007","section_id":"rule-lrc-lic"},"references":["IFRS 17 §40"],"exercise":{"prompt":{"fr":"","en":"How is the carrying amount of a group of insurance contracts made up at the end of a period?","es":""},"explanation":{"fr":"","en":"The carrying amount of a group at the end of a period is the sum of the liability for remaining coverage and the liability for incurred claims (IFRS 17, para. 40). Trap: Subtracting one liability from the other or starting from cash movements. Rule to remember: Carrying amount = liability for remaining coverage + liability for incurred claims (IFRS 17, para. 40).","es":""},"common_error":{"fr":"","en":"Subtracting one liability from the other or reasoning on cash flows.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Of the sum of the liability for remaining coverage and the liability for incurred claims.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Of the liability for remaining coverage, less the liability for incurred claims.","es":""},"correct":false,"feedback":{"fr":"","en":"The two liabilities are added: deducting the liability for incurred claims from the liability for remaining coverage has no basis in the rule (IFRS 17, para. 40). Rule to remember: The two liabilities are added (IFRS 17, para. 40).","es":""}},{"id":"C","text":{"fr":"","en":"Of the sum of premiums received and claims paid since the group was issued.","es":""},"correct":false,"feedback":{"fr":"","en":"Premiums received and claims paid are cash movements, not components of the carrying amount: it combines two liabilities (IFRS 17, para. 40). Rule to remember: Two liabilities, not cash movements (IFRS 17, para. 40).","es":""}},{"id":"D","text":{"fr":"","en":"Of the contractual service margin, plus the risk adjustment for non-financial risk.","es":""},"correct":false,"feedback":{"fr":"","en":"The margin and the risk adjustment are measurement elements contained in the liabilities, not the two components of the carrying amount itself (IFRS 17, para. 40). Rule to remember: The carrying amount adds the two liabilities (IFRS 17, para. 40).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000040","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.LRC_LIC"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000040","tested_point":"QST.IFRS17.000040","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000007","section_id":"rule-lrc-lic"},"references":["IFRS 17 §40"],"exercise":{"prompt":{"fr":"","en":"At the closing date, Harmonie SA reports for a group a liability for remaining coverage of 700 euros and a liability for incurred claims of 300 euros (case data). What is the carrying amount of the group?","es":""},"explanation":{"fr":"","en":"The carrying amount of a group at the end of a period is the sum of the liability for remaining coverage and the liability for incurred claims: 700 + 300 = 1,000 euros (IFRS 17, para. 40). Trap: Subtracting the two liabilities or keeping just one. Rule to remember: Carrying amount = liability for remaining coverage + liability for incurred claims (IFRS 17, para. 40).","es":""},"common_error":{"fr":"","en":"Subtracting one liability from the other or keeping only the liability for remaining coverage.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"400 euros.","es":""},"correct":false,"feedback":{"fr":"","en":"400 euros results from the subtraction 700 − 300: the rule adds the two liabilities instead of deducting one from the other (IFRS 17, para. 40). Rule to remember: The two liabilities are added (IFRS 17, para. 40).","es":""}},{"id":"B","text":{"fr":"","en":"700 euros.","es":""},"correct":false,"feedback":{"fr":"","en":"700 euros is the liability for remaining coverage alone: the carrying amount also includes the liability for incurred claims of 300 euros (IFRS 17, para. 40). Rule to remember: The carrying amount combines the two liabilities (IFRS 17, para. 40).","es":""}},{"id":"C","text":{"fr":"","en":"1,000 euros.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"1,400 euros.","es":""},"correct":false,"feedback":{"fr":"","en":"1,400 euros doubles the liability for remaining coverage, 700 + 700, instead of adding the liability for incurred claims: the correct calculation is 700 + 300 (IFRS 17, para. 40). Rule to remember: Remaining coverage + incurred claims (IFRS 17, para. 40).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000041","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.CSM_ROLLFORWARD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000041","tested_point":"QST.IFRS17.000041","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000007","section_id":"rule-rollforward"},"references":["IFRS 17 §44"],"exercise":{"prompt":{"fr":"","en":"Which movements appear in the reconciliation of the contractual service margin of a group between opening and closing? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"The closing margin of a group equals the opening margin adjusted for new contracts, for interest accretion at the group's original rate, for changes in cash flows relating to future service, for currency exchange differences and for the amount released for services provided (IFRS 17, para. 44). Trap: Using the current rate or omitting exchange differences. Rule to remember: New contracts, interest at the original rate, future service, exchange, release (IFRS 17, para. 44).","es":""},"common_error":{"fr":"","en":"Calculating interest at the current rate or ignoring exchange differences in the reconciliation.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The effect of new contracts added to the group.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Interest accretion, calculated at the current discount rate at the closing date.","es":""},"correct":false,"feedback":{"fr":"","en":"The current rate is not the rate of the rule: accretion is calculated at the group's original rate, set on initial recognition (IFRS 17, para. 44). Rule to remember: Accretion at the original rate (IFRS 17, para. 44).","es":""}},{"id":"C","text":{"fr":"","en":"Interest accretion, calculated at the group's original rate.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The amount released to profit or loss for services provided.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The group's currency exchange differences, which are left out of the reconciliation.","es":""},"correct":false,"feedback":{"fr":"","en":"Currency exchange differences are among the movements listed by the rule: they are not left out of the reconciliation (IFRS 17, para. 44). Rule to remember: Exchange differences are a movement of the margin (IFRS 17, para. 44).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000042","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.CSM_ROLLFORWARD"],"dimension":"CALCULATION","context":"V1_QST.IFRS17.000042","tested_point":"QST.IFRS17.000042","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000007","section_id":"rule-rollforward"},"references":["IFRS 17 §44"],"exercise":{"prompt":{"fr":"","en":"The group of contracts of Cassiopée SA has an opening contractual service margin of {opening_csm}. During the period, new contracts add {new_contracts} to the margin; accretion is calculated at the group's original rate of {original_rate} (case data); a revision of estimates relating to future service decreases the margin by {future_service_decrease}. The share of the margin released for services provided is {release_percent} of the margin before release (fraction derived from coverage units: case data). Calculate the interest, the margin before release and the closing margin.","es":""},"explanation":{"fr":"","en":"Method: interest 10,000 × 4% = 400; margin before release 10,000 + 1,500 + 400 − 900 = 11,000; release 11,000 × 20% = 2,200; closing margin 11,000 − 2,200 = 8,800. The closing margin is the opening margin adjusted for new contracts, for accretion at the original rate, for changes relating to future service and for the amount released for services provided (IFRS 17, para. 44). Trap: Calculating interest at the current rate or applying the release to the opening margin. Rule to remember: Interest follows the original rate and the release applies to the margin before release (IFRS 17, para. 44).","es":""},"common_error":{"fr":"","en":"Applying the current rate to the interest or the released fraction to the opening margin.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_csm","value":"10000","unit":"EUR"},{"id":"new_contracts","value":"1500","unit":"EUR"},{"id":"original_rate","value":"4","unit":"PERCENT"},{"id":"future_service_decrease","value":"900","unit":"EUR"},{"id":"release_percent","value":"20","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Opening margin","es":""},"value":"10000","unit":"EUR"},{"label":{"fr":"","en":"Effect of new contracts","es":""},"value":"1500","unit":"EUR"},{"label":{"fr":"","en":"Original rate of the group (case data)","es":""},"value":"4","unit":"PERCENT"},{"label":{"fr":"","en":"Decrease due to future service","es":""},"value":"900","unit":"EUR"},{"label":{"fr":"","en":"Share released for services provided (case data)","es":""},"value":"20","unit":"PERCENT"}],"steps":[{"id":"INTEREST","label":{"fr":"","en":"Interest accretion for the period","es":""},"answer":400,"tolerance":0,"unit":"EUR"},{"id":"CSM_BEFORE_RELEASE","label":{"fr":"","en":"Margin before release","es":""},"answer":11000,"tolerance":0,"unit":"EUR"},{"id":"CSM_CLOSING","label":{"fr":"","en":"Closing margin","es":""},"answer":8800,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTEREST","meaning":{"fr":"","en":"Interest accretion for the period","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening margin","es":""},"value":10000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Original rate of the group (case data)","es":""},"value":4,"unit":"PERCENT"}],"result":400,"unit":"EUR"},{"step":"CSM_BEFORE_RELEASE","meaning":{"fr":"","en":"Margin before release","es":""},"expression":"a + b + c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening margin","es":""},"value":10000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Effect of new contracts","es":""},"value":1500,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Interest accretion for the period","es":""},"value":400,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Decrease due to future service","es":""},"value":900,"unit":"EUR"}],"result":11000,"unit":"EUR"},{"step":"CSM_CLOSING","meaning":{"fr":"","en":"Closing margin","es":""},"expression":"a - (a * b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Margin before release","es":""},"value":11000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share released for services provided (case data)","es":""},"value":20,"unit":"PERCENT"}],"result":8800,"unit":"EUR"}],"rationale":{"fr":"","en":"Interest follows the original rate and the release applies to the margin before release (IFRS 17, para. 44).","es":""},"references":["REF.IFRS17.44"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000043","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.CSM_ROLLFORWARD"],"dimension":"ANALYSIS","context":"V1_QST.IFRS17.000043","tested_point":"QST.IFRS17.000043","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000007","section_id":"rule-rollforward"},"references":["IFRS 17 §44"],"exercise":{"prompt":{"fr":"","en":"An analyst increases an opening margin of 5,000 euros by interest accretion of 300 euros, calculated at 6%, the current market rate at the closing date. The group's original rate is 3% (case data). What is the error in this calculation?","es":""},"explanation":{"fr":"","en":"The closing margin equals the opening margin adjusted, among other things, for interest accretion at the group's original rate (IFRS 17, para. 44). Here: 5,000 × 3% = 150 euros; the analyst used 300 euros at the current rate of 6%. Trap: Accreting the margin at the current market rate. Rule to remember: Interest on the margin at the group's original rate (IFRS 17, para. 44).","es":""},"common_error":{"fr":"","en":"Calculating the accretion of the margin at the current market rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It increases the margin by interest, whereas interest accretion is not a movement of the margin of this group.","es":""},"correct":false,"feedback":{"fr":"","en":"Interest accretion is among the movements of the margin: the analyst is right to add it, the error concerns the rate used (IFRS 17, para. 44). Rule to remember: Accretion is a movement of the margin, at the original rate (IFRS 17, para. 44).","es":""}},{"id":"B","text":{"fr":"","en":"It calculates the interest on the opening margin, whereas the correct base is the closing margin before release.","es":""},"correct":false,"feedback":{"fr":"","en":"The rule starts from the opening margin and accretion at the original rate: taking the closing margin as the base would be circular, and the gap comes not from the base but from the rate (IFRS 17, para. 44). Rule to remember: The original rate is the key (IFRS 17, para. 44).","es":""}},{"id":"C","text":{"fr":"","en":"It applies the current rate at the closing date, whereas accretion is made at the group's original rate: 150 euros.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It applies the right rate, but it should have decreased the opening margin by that interest: 4,700 euros.","es":""},"correct":false,"feedback":{"fr":"","en":"Accretion increases the opening margin, it does not decrease it: the direction is right, it is the rate applied, current instead of original, that is wrong (IFRS 17, para. 44). Rule to remember: Accretion added, at the original rate (IFRS 17, para. 44).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000044","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.CSM_ADJUSTMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000044","tested_point":"QST.IFRS17.000044","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000007","section_id":"rule-adjustments"},"references":["IFRS 17 §B96"],"exercise":{"prompt":{"fr":"","en":"At the closing date, Elvire SA identifies two changes for a group. C1: the administration costs expected for the remaining coverage period are revised upwards by 200 euros. C2: the claims of the year exceed by 80 euros those that were expected for that year (current service). Which treatment complies with the rule?","es":""},"explanation":{"fr":"","en":"Changes in fulfilment cash flows relating to future service (non-financial assumptions, experience adjustments for future cash flows) adjust the margin, whereas changes relating to past or current service go to profit or loss (IFRS 17, para. B96). C1 relates to the remaining coverage: the margin is adjusted. C2 relates to the current year: profit or loss. Professional judgement: attaching each change to future or current service. Trap: Treating all changes in estimates in the same way. Rule to remember: Future service: margin; past or current service: profit or loss (IFRS 17, para. B96).","es":""},"common_error":{"fr":"","en":"Taking all changes in estimates to the margin, or all of them to profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"C1 adjusts the contractual service margin; C2 goes to profit or loss.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"C1 goes to profit or loss; C2 adjusts the contractual service margin.","es":""},"correct":false,"feedback":{"fr":"","en":"The two treatments are swapped: the revision of expected costs over the remaining coverage relates to future service and adjusts the margin, whereas the difference in claims for the year relates to current service (IFRS 17, para. B96). Rule to remember: Future: margin; current: profit or loss (IFRS 17, para. B96).","es":""}},{"id":"C","text":{"fr":"","en":"C1 and C2 both adjust the contractual service margin.","es":""},"correct":false,"feedback":{"fr":"","en":"Only C1 relates to future service: the difference in claims for the year concerns current service, which the rule sends to profit or loss and not to the margin (IFRS 17, para. B96). Rule to remember: Current service goes to profit or loss (IFRS 17, para. B96).","es":""}},{"id":"D","text":{"fr":"","en":"C1 and C2 both go to profit or loss of the year.","es":""},"correct":false,"feedback":{"fr":"","en":"The revision of costs expected over the remaining coverage relates to future service: it adjusts the margin and is not taken to profit or loss of the year (IFRS 17, para. B96). Rule to remember: Changes relating to future service go to the margin (IFRS 17, para. B96).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000045","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.COVERAGE_UNITS_RELEASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000045","tested_point":"QST.IFRS17.000045","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000008","section_id":"rule-release"},"references":["IFRS 17 §B119"],"exercise":{"prompt":{"fr":"","en":"How is the contractual service margin at the end of a period spread across periods?","es":""},"explanation":{"fr":"","en":"The margin at the end of the period is allocated equally between the coverage units provided in the period and expected in the future, and the amount allocated to the period is recognised in profit or loss; the number of units reflects the quantity of benefits and the expected coverage duration (IFRS 17, para. B119). Trap: Allocating in proportion to time alone or releasing the margin in one step. Rule to remember: Margin allocated equally between coverage units provided and expected (IFRS 17, para. B119).","es":""},"common_error":{"fr":"","en":"Releasing the margin in proportion to time without considering the quantity of benefits, or in one step.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In proportion to the time elapsed, without regard to the quantity of benefits provided in each coverage period.","es":""},"correct":false,"feedback":{"fr":"","en":"The number of units reflects the quantity of benefits and the expected coverage duration: an allocation in proportion to time alone ignores the quantity of benefits, which counts under the rule (IFRS 17, para. B119). Rule to remember: Units reflect quantity and duration (IFRS 17, para. B119).","es":""}},{"id":"B","text":{"fr":"","en":"Entirely to profit or loss from the first coverage period, the margin being regarded as earned at the issue of the contract.","es":""},"correct":false,"feedback":{"fr":"","en":"The margin is allocated between the coverage units provided and expected, not released in a single step: recognising it entirely in the first period would run against the rule (IFRS 17, para. B119). Rule to remember: Allocation between coverage units (IFRS 17, para. B119).","es":""}},{"id":"C","text":{"fr":"","en":"Between the coverage units expected in the future, without counting those of the elapsed period.","es":""},"correct":false,"feedback":{"fr":"","en":"The units of the elapsed period enter the allocation: leaving them out would deprive the period of the share of margin that belongs to it (IFRS 17, para. B119). Rule to remember: Units provided and units expected (IFRS 17, para. B119).","es":""}},{"id":"D","text":{"fr":"","en":"Equally between the coverage units provided and expected; the share of the period goes to profit or loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000046","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.COVERAGE_UNITS_RELEASE"],"dimension":"CALCULATION","context":"V1_QST.IFRS17.000046","tested_point":"QST.IFRS17.000046","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000008","section_id":"rule-release"},"references":["IFRS 17 §B119"],"exercise":{"prompt":{"fr":"","en":"The group of contracts of Aurore SA has a contractual service margin of {csm_before_release} before release. Management uses the number of contracts covered as the coverage unit (management's judgement: a choice not imposed by the standard). The group provided {units_period} coverage units in the period and will provide {units_future} in the future (case data). Calculate the amount released to profit or loss for the period and the closing margin.","es":""},"explanation":{"fr":"","en":"Method: units provided and expected 150 + 600 = 750; share of the period 150 ÷ 750 = 20%; release 9,000 × 20% = 1,800; closing margin 9,000 − 1,800 = 7,200. The margin is allocated equally between the coverage units provided in the period and expected in the future, and the share of the period is recognised in profit or loss (IFRS 17, para. B119). The choice of units is management's judgement, not a rule of the standard. Trap: Dividing the units of the period by the future units alone (150 ÷ 600). Rule to remember: The share of the period is calculated on the total of units provided and expected (IFRS 17, para. B119).","es":""},"common_error":{"fr":"","en":"Dividing the units of the period by the future units alone, instead of the total units.","es":""},"format":"CALCULATION","placeholders":[{"id":"csm_before_release","value":"9000","unit":"EUR"},{"id":"units_period","value":"150","unit":"UNITS"},{"id":"units_future","value":"600","unit":"UNITS"}],"data":[{"label":{"fr":"","en":"Margin before release","es":""},"value":"9000","unit":"EUR"},{"label":{"fr":"","en":"Coverage units provided in the period","es":""},"value":"150","unit":"UNITS"},{"label":{"fr":"","en":"Coverage units expected in the future","es":""},"value":"600","unit":"UNITS"}],"steps":[{"id":"RELEASE_AMOUNT","label":{"fr":"","en":"Amount released to profit or loss for the period","es":""},"answer":1800,"tolerance":0,"unit":"EUR"},{"id":"CSM_CLOSING","label":{"fr":"","en":"Closing margin","es":""},"answer":7200,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CSM_CLOSING","meaning":{"fr":"","en":"Closing margin","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Margin before release","es":""},"value":9000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Amount released to profit or loss for the period","es":""},"value":1800,"unit":"EUR"}],"result":7200,"unit":"EUR"}],"rationale":{"fr":"","en":"The share of the period is calculated on the total of units provided and expected (IFRS 17, para. B119).","es":""},"references":["REF.IFRS17.B119"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000048","standard_id":"IFRS17","concept_ids":["IFRS17.SUBSEQUENT.ONEROUS_SUBSEQUENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000048","tested_point":"QST.IFRS17.000048","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000008","section_id":"rule-loss-component"},"references":["IFRS 17 §49"],"exercise":{"prompt":{"fr":"","en":"How does the loss component of the liability for remaining coverage of an onerous group work after initial recognition?","es":""},"explanation":{"fr":"","en":"A loss component of the liability for remaining coverage tracks the losses recognised on an onerous group; it is allocated systematically and reversed when the group becomes profitable again before a margin is rebuilt (IFRS 17, para. 49; allocation and reversal: paras. 50 to 52). Trap: Offsetting the loss against other groups or removing it at the closing date. Rule to remember: Loss component specific to the onerous group, reversed before any rebuilding of margin (IFRS 17, para. 49; allocation and reversal: paras. 50 to 52).","es":""},"common_error":{"fr":"","en":"Offsetting the loss against the margin of other groups or making it disappear at the next closing date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is removed at the next closing date, the loss then being definitively earned in profit or loss of the year and no longer tracked.","es":""},"correct":false,"feedback":{"fr":"","en":"The component is not removed at the next closing date: it tracks the losses of the group and is reversed only when the group becomes profitable again (IFRS 17, para. 49; allocation and reversal: paras. 50 to 52). Rule to remember: It remains until reversed (IFRS 17, para. 49; allocation and reversal: paras. 50 to 52).","es":""}},{"id":"B","text":{"fr":"","en":"It tracks the group's losses, is allocated systematically and reversed when the group becomes profitable again, before any margin.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is recalculated at each closing date from the remaining margin of the other profitable groups of the same portfolio of contracts.","es":""},"correct":false,"feedback":{"fr":"","en":"The component concerns the onerous group itself: it is not calculated from the other groups of the portfolio (IFRS 17, para. 49; allocation and reversal: paras. 50 to 52). Rule to remember: One component per onerous group (IFRS 17, para. 49; allocation and reversal: paras. 50 to 52).","es":""}},{"id":"D","text":{"fr":"","en":"It is offset against the margin of a profitable group of the same portfolio to bring the loss of the onerous group to zero.","es":""},"correct":false,"feedback":{"fr":"","en":"No offset against the margin of another group is provided for: the loss remains recognised on the onerous group, tracked by its loss component (IFRS 17, para. 49; allocation and reversal: paras. 50 to 52). Rule to remember: No offset between groups (IFRS 17, para. 49; allocation and reversal: paras. 50 to 52).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000049","standard_id":"IFRS17","concept_ids":["IFRS17.PAA.ELIGIBILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000049","tested_point":"QST.IFRS17.000049","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000009","section_id":"rule-eligibility"},"references":["IFRS 17 §53"],"exercise":{"prompt":{"fr":"","en":"Under what conditions may an entity use the premium allocation approach for a group of contracts?","es":""},"explanation":{"fr":"","en":"The premium allocation approach may be used for a group if, at its inception, the entity reasonably expects that the liability for remaining coverage will not differ materially from that of the general model, or if the coverage period of each contract in the group is one year or less (IFRS 17, para. 53). Trap: Requiring both conditions or leaving the choice free. Rule to remember: Eligibility: either condition is enough (IFRS 17, para. 53).","es":""},"common_error":{"fr":"","en":"Requiring both conditions together, or believing the entity's choice is enough without a condition.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"When both conditions are met: no significant difference expected from the general model and a coverage period of one year or less.","es":""},"correct":false,"feedback":{"fr":"","en":"The two conditions are not cumulative: either is enough to allow the premium allocation approach (IFRS 17, para. 53). Requiring both restricts access unnecessarily. Rule to remember: One of the two conditions is enough (IFRS 17, para. 53).","es":""}},{"id":"B","text":{"fr":"","en":"When the coverage period of each contract is one year or less; a non-significant difference from the general model does not open access to the approach.","es":""},"correct":false,"feedback":{"fr":"","en":"A coverage period of one year or less is one of the two conditions, but the other, no significant difference expected from the general model, also opens access to the approach for longer contracts (IFRS 17, para. 53). Rule to remember: Two routes of access (IFRS 17, para. 53).","es":""}},{"id":"C","text":{"fr":"","en":"When the entity chooses it, whatever the coverage duration and the difference from the general measurement model.","es":""},"correct":false,"feedback":{"fr":"","en":"The approach assumes one of the two conditions: the entity's choice is not enough on its own when neither the absence of a significant difference nor a coverage period of one year or less is established (IFRS 17, para. 53). Rule to remember: One condition is necessary (IFRS 17, para. 53).","es":""}},{"id":"D","text":{"fr":"","en":"When either of two conditions is met: no significant difference expected, or a coverage period of one year or less for each contract.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000050","standard_id":"IFRS17","concept_ids":["IFRS17.PAA.ELIGIBILITY"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000050","tested_point":"QST.IFRS17.000050","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000009","section_id":"rule-eligibility"},"references":["IFRS 17 §53"],"exercise":{"prompt":{"fr":"","en":"Fidèle SA reviews three groups of contracts at inception. Group A: six-month contracts. Group B: three-year contracts, for which the entity reasonably expects a liability for remaining coverage that does not differ materially from that of the general model (management's judgement). Group C: three-year contracts, for which the expected difference from the general model is significant. Which groups may use the premium allocation approach?","es":""},"explanation":{"fr":"","en":"The premium allocation approach may be used for a group if, at its inception, the entity reasonably expects that the liability for remaining coverage will not differ materially from that of the general model, or if the coverage period of each contract in the group is one year or less (IFRS 17, para. 53). Group A: six-month period. Group B: no significant difference expected (management's judgement). Group C: neither. Trap: Reserving the approach for short contracts. Rule to remember: One condition is enough, each group is checked separately (IFRS 17, para. 53).","es":""},"common_error":{"fr":"","en":"Reserving the approach for short contracts alone, forgetting the condition of no significant difference.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Group A, but neither group B nor group C.","es":""},"correct":false,"feedback":{"fr":"","en":"Group B is also eligible: despite its three-year duration, the entity reasonably expects a liability close to that of the general model, which is enough (IFRS 17, para. 53). Rule to remember: No significant difference opens access (IFRS 17, para. 53).","es":""}},{"id":"B","text":{"fr":"","en":"Groups A and B, but not group C.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Groups B and C, but not group A.","es":""},"correct":false,"feedback":{"fr":"","en":"Group A is eligible thanks to its coverage period of one year or less, and group C meets neither condition: this answer reverses the cases (IFRS 17, para. 53). Rule to remember: Check each group against both conditions (IFRS 17, para. 53).","es":""}},{"id":"D","text":{"fr":"","en":"All three groups A, B and C.","es":""},"correct":false,"feedback":{"fr":"","en":"Group C has three-year contracts and a significant expected difference: neither condition is met, so it stays with the general model (IFRS 17, para. 53). Rule to remember: With no condition met, no premium allocation approach (IFRS 17, para. 53).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000051","standard_id":"IFRS17","concept_ids":["IFRS17.PAA.ELIGIBILITY"],"dimension":"ANALYSIS","context":"V1_QST.IFRS17.000051","tested_point":"QST.IFRS17.000051","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000009","section_id":"rule-eligibility"},"references":["IFRS 17 §53"],"exercise":{"prompt":{"fr":"","en":"An analyst rules out the premium allocation approach for a group of nine-month contracts, writing: \"The liability for remaining coverage could differ significantly from that of the general model; the approach is therefore excluded.\" What is the error in this reasoning?","es":""},"explanation":{"fr":"","en":"The premium allocation approach may be used for a group if the entity reasonably expects, at inception, no significant difference from the general model, or if the coverage period of each contract in the group is one year or less (IFRS 17, para. 53). The nine-month group meets the second condition: a possible difference from the general model does not prevent it. Trap: Requiring both conditions. Rule to remember: A coverage period of one year or less is enough (IFRS 17, para. 53).","es":""},"common_error":{"fr":"","en":"Making the approach depend on the absence of any difference from the general model even for short contracts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It forgets that the approach is mandatory for any group whose coverage period is under one year.","es":""},"correct":false,"feedback":{"fr":"","en":"The approach is not mandatory: the rule says that the entity may use it when either condition is met (IFRS 17, para. 53). The analyst's error is requiring a superfluous condition. Rule to remember: The approach is permitted, not imposed (IFRS 17, para. 53).","es":""}},{"id":"B","text":{"fr":"","en":"It confuses the coverage period with the claims settlement period of the group.","es":""},"correct":false,"feedback":{"fr":"","en":"The analyst does not speak of claims settlement: the reasoning is about the difference from the general model, and what counts in the duration condition is the coverage period of the contracts (IFRS 17, para. 53). Rule to remember: Coverage period of each contract (IFRS 17, para. 53).","es":""}},{"id":"C","text":{"fr":"","en":"It requires no significant difference, whereas coverage of one year or less per contract is enough.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It compares the liability with the general model at the closing date, whereas the comparison is made at the inception of the group.","es":""},"correct":false,"feedback":{"fr":"","en":"The analyst did not set a comparison date: the time of assessment is indeed the inception of the group, but the error lies elsewhere, in requiring an additional condition (IFRS 17, para. 53). Rule to remember: One condition is enough (IFRS 17, para. 53).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000052","standard_id":"IFRS17","concept_ids":["IFRS17.PAA.MEASUREMENT"],"dimension":"CALCULATION","context":"V1_QST.IFRS17.000052","tested_point":"QST.IFRS17.000052","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000009","section_id":"rule-measurement"},"references":["IFRS 17 §55"],"exercise":{"prompt":{"fr":"","en":"Zénith SA issues a group of twelve-month contracts eligible for the premium allocation approach. It receives {premium_received} of premiums at issue and pays {acquisition_cash_flows} of acquisition cash flows, which it deducts from the liability (it does not use the option to expense them). Case convention: insurance revenue and the amortisation of acquisition cash flows follow the time elapsed; {months_elapsed} have elapsed. Calculate the initial liability for remaining coverage, the revenue of the period and the closing liability.","es":""},"explanation":{"fr":"","en":"Method: initial liability 1,200 − 120 = 1,080; insurance revenue in proportion to time (case convention) 1,200 × 3 ÷ 12 = 300; amortisation of acquisition cash flows 120 × 3 ÷ 12 = 30; closing liability 1,080 + 30 − 300 = 810. Under the premium allocation approach, the liability is initially the premium received less the acquisition cash flows; it then increases by the amortisation of those cash flows recognised as an expense and decreases by the revenue recognised (IFRS 17, para. 55). Trap: Deducting the revenue from the gross premium instead of the liability net of acquisition cash flows. Rule to remember: Closing liability = premium − acquisition cash flows + their amortisation − revenue recognised (IFRS 17, para. 55).","es":""},"common_error":{"fr":"","en":"Deducting the revenue from the gross premium without having deducted the acquisition cash flows from the liability.","es":""},"format":"CALCULATION","placeholders":[{"id":"premium_received","value":"1200","unit":"EUR"},{"id":"acquisition_cash_flows","value":"120","unit":"EUR"},{"id":"months_elapsed","value":"3","unit":"MONTHS"}],"data":[{"label":{"fr":"","en":"Premiums received at issue","es":""},"value":"1200","unit":"EUR"},{"label":{"fr":"","en":"Acquisition cash flows deducted from the liability","es":""},"value":"120","unit":"EUR"},{"label":{"fr":"","en":"Months elapsed since issue","es":""},"value":"3","unit":"MONTHS"}],"steps":[{"id":"INITIAL_LIABILITY","label":{"fr":"","en":"Initial liability for remaining coverage","es":""},"answer":1080,"tolerance":0,"unit":"EUR"},{"id":"REVENUE","label":{"fr":"","en":"Insurance revenue of the period","es":""},"answer":300,"tolerance":0,"unit":"EUR"},{"id":"CLOSING_LIABILITY","label":{"fr":"","en":"Closing liability for remaining coverage","es":""},"answer":810,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INITIAL_LIABILITY","meaning":{"fr":"","en":"Initial liability for remaining coverage","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Premiums received at issue","es":""},"value":1200,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Acquisition cash flows deducted from the liability","es":""},"value":120,"unit":"EUR"}],"result":1080,"unit":"EUR"},{"step":"REVENUE","meaning":{"fr":"","en":"Insurance revenue of the period","es":""},"expression":"a * b / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Premiums received at issue","es":""},"value":1200,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Months elapsed since issue","es":""},"value":3,"unit":"MONTHS"}],"result":300,"unit":"EUR"},{"step":"CLOSING_LIABILITY","meaning":{"fr":"","en":"Closing liability for remaining coverage","es":""},"expression":"a + (b * c / 12) - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Initial liability for remaining coverage","es":""},"value":1080,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Acquisition cash flows deducted from the liability","es":""},"value":120,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Months elapsed since issue","es":""},"value":3,"unit":"MONTHS"},{"symbol":"d","meaning":{"fr":"","en":"Insurance revenue of the period","es":""},"value":300,"unit":"EUR"}],"result":810,"unit":"EUR"}],"rationale":{"fr":"","en":"Closing liability = premium − acquisition cash flows + their amortisation − revenue recognised (IFRS 17, para. 55).","es":""},"references":["REF.IFRS17.55"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000054","standard_id":"IFRS17","concept_ids":["IFRS17.PAA.ACQUISITION_CASH_FLOWS"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000054","tested_point":"QST.IFRS17.000054","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000009","section_id":"rule-acquisition"},"references":["IFRS 17 §59"],"exercise":{"prompt":{"fr":"","en":"Tellis SA applies the premium allocation approach to a group whose contracts each have a coverage period of nine months. It has incurred 100 euros of acquisition cash flows. What may it do with these flows?","es":""},"explanation":{"fr":"","en":"The entity may expense the acquisition cash flows as they are incurred, if the coverage period of each contract in the group is one year or less (IFRS 17, para. 59). Tellis's contracts have nine months of coverage: the option is open. It is a faculty, not an obligation. Trap: Believing the option applies with no duration condition or that it is excluded. Rule to remember: Expensing is possible if the coverage of each contract is one year or less (IFRS 17, para. 59).","es":""},"common_error":{"fr":"","en":"Extending expensing to groups with more than one year of coverage or refusing it to short groups.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Expense them as they are incurred, since the coverage period of each contract in the group is one year or less.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Deduct them from the liability for remaining coverage in every case, expensing being excluded under this approach.","es":""},"correct":false,"feedback":{"fr":"","en":"Expensing is not excluded: the rule opens it precisely to groups whose coverage period is one year or less, which is the case here with nine months (IFRS 17, para. 59). Rule to remember: Option open to groups with short coverage (IFRS 17, para. 59).","es":""}},{"id":"C","text":{"fr":"","en":"Expense them once the coverage period exceeds one year, and not before.","es":""},"correct":false,"feedback":{"fr":"","en":"The condition is reversed: it is a coverage period of one year or less that opens the option, not a period exceeding one year (IFRS 17, para. 59). Rule to remember: One year or less (IFRS 17, para. 59).","es":""}},{"id":"D","text":{"fr":"","en":"Expense them for this group as for any other, with no condition on the coverage duration.","es":""},"correct":false,"feedback":{"fr":"","en":"The option is subject to duration: it assumes a coverage period of one year or less for each contract, it is not open to every group (IFRS 17, para. 59). Rule to remember: Option subject to a duration condition (IFRS 17, para. 59).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000055","standard_id":"IFRS17","concept_ids":["IFRS17.VFA.DIRECT_PARTICIPATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000055","tested_point":"QST.IFRS17.000055","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000010","section_id":"rule-criteria"},"references":["IFRS 17 §B101"],"exercise":{"prompt":{"fr":"","en":"An insurance contract is a contract with direct participation features as soon as its terms provide for participation in a clearly identified pool of underlying items.","es":""},"explanation":{"fr":"","en":"A contract with direct participation features is an insurance contract whose terms provide for participation in a clearly identified pool of underlying items, the expectation of a substantial share of the fair value returns, and the expectation that a substantial proportion of the changes in the amounts paid will vary with the fair value of the underlying items (IFRS 17, para. B101). The three criteria are cumulative. Trap: Stopping at the first criterion. Rule to remember: Three criteria met together: identified pool, substantial share of returns, substantial proportion of changes aligned (IFRS 17, para. B101).","es":""},"common_error":{"fr":"","en":"Classifying the contract as direct participation on the sole basis of the identified underlying pool.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000056","standard_id":"IFRS17","concept_ids":["IFRS17.VFA.DIRECT_PARTICIPATION"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000056","tested_point":"QST.IFRS17.000056","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000010","section_id":"rule-criteria"},"references":["IFRS 17 §B101"],"exercise":{"prompt":{"fr":"","en":"Quartz SA reviews three contracts. Contract 1: the terms provide for participation in a clearly identified fund; the policyholder expects 90% of the fund's returns at fair value, and the amounts paid to the policyholder vary mostly with the fair value of the fund. Contract 2: participation in a clearly identified fund, but the policyholder is entitled to only 5% of the returns, and the amounts paid vary very little with fair value. Contract 3: guaranteed fixed return, with no identified underlying pool. The assessments of \"substantial\" are case data. Which contracts are contracts with direct participation features?","es":""},"explanation":{"fr":"","en":"A contract with direct participation features meets three criteria: participation in a clearly identified pool of underlying items, the expectation of a substantial share of the fair value returns, and the expectation that a substantial proportion of the changes in the amounts paid will vary with fair value (IFRS 17, para. B101). Contract 1 meets them; contract 2 meets only one; contract 3 meets none. Professional judgement: assessing what is substantial (given by the case). Trap: Concluding from the identified pool alone. Rule to remember: The three criteria must be met together (IFRS 17, para. B101).","es":""},"common_error":{"fr":"","en":"Retaining a contract that meets only the identified underlying pool criterion.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Contracts 1 and 2, but not contract 3.","es":""},"correct":false,"feedback":{"fr":"","en":"Contract 2 meets the identified pool criterion, but neither the substantial share of returns (5%) nor the aligned changes: it does not meet all three criteria (IFRS 17, para. B101). Rule to remember: The three criteria are cumulative (IFRS 17, para. B101).","es":""}},{"id":"B","text":{"fr":"","en":"Contract 1, but neither contract 2 nor contract 3.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Contract 2, but neither contract 1 nor contract 3.","es":""},"correct":false,"feedback":{"fr":"","en":"Contract 1 meets the three criteria, whereas contract 2 meets only one: this answer reverses the cases (IFRS 17, para. B101). Rule to remember: Check the three criteria for each contract (IFRS 17, para. B101).","es":""}},{"id":"D","text":{"fr":"","en":"All three contracts 1, 2 and 3.","es":""},"correct":false,"feedback":{"fr":"","en":"Contract 3 has no identified underlying pool and its return is fixed: none of the three criteria is met (IFRS 17, para. B101). Rule to remember: No identified pool, no direct participation (IFRS 17, para. B101).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000058","standard_id":"IFRS17","concept_ids":["IFRS17.REINSURANCE.GENERAL_MODEL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000058","tested_point":"QST.IFRS17.000058","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000011","section_id":"rule-model"},"references":["IFRS 17 §60"],"exercise":{"prompt":{"fr":"","en":"A reinsurance contract held by a cedant is measured together with the underlying insurance contracts it covers, as a single set of cash flows.","es":""},"explanation":{"fr":"","en":"The requirements of the standard apply to reinsurance contracts held with the modifications of paras. 61 to 70A (IFRS 17, para. 60): those contracts form their own portfolios and groups and are measured separately from the underlying contracts. Trap: Merging the reinsurance contract and the underlying contracts in a single measurement. Rule to remember: Separate measurement of the reinsurance contract held (IFRS 17, para. 60).","es":""},"common_error":{"fr":"","en":"Measuring the reinsurance contract held together with the underlying contracts it covers.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000059","standard_id":"IFRS17","concept_ids":["IFRS17.REINSURANCE.LOSS_RECOVERY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000059","tested_point":"QST.IFRS17.000059","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000011","section_id":"rule-recovery"},"references":["IFRS 17 §66A"],"exercise":{"prompt":{"fr":"","en":"A reinsurance contract held, entered into before the underlying contracts were recognised, covers proportionally an onerous underlying group. What does the loss-recovery component introduced by the June 2020 amendments provide for?","es":""},"explanation":{"fr":"","en":"When the entity recognises the loss of an onerous underlying group covered by a reinsurance contract held entered into no later than that time, it adjusts the margin of the reinsurance group and recognises income, tracked by a loss-recovery component: the expected recovery is recognised at the same time as the loss (IFRS 17, para. 66A). Proportionate cover is not a condition. This rule comes from the June 2020 amendments. Trap: Postponing the recovery until claims are settled. Rule to remember: Loss-recovery component: recovery recognised at the same time as the loss (IFRS 17, para. 66A).","es":""},"common_error":{"fr":"","en":"Recognising the recovery only when the claims of the underlying group are settled.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The expected recovery is recognised after the claims of the onerous underlying group are paid, at the actual settlement date of each claim.","es":""},"correct":false,"feedback":{"fr":"","en":"The recovery does not wait for claims to be settled: the component recognises the expected recovery at the same time as the loss of the underlying group (IFRS 17, para. 66A). Rule to remember: Recovery and loss are recognised together (IFRS 17, para. 66A).","es":""}},{"id":"B","text":{"fr":"","en":"The loss of the underlying group is cancelled, the reinsurer bearing the risk of that group in place of the cedant for all future claims of the group.","es":""},"correct":false,"feedback":{"fr":"","en":"The loss of the underlying group is not cancelled: it stays recognised, and it is the expected recovery under the reinsurance contract that is recognised alongside it (IFRS 17, para. 66A). Rule to remember: Two separate amounts recognised at the same time (IFRS 17, para. 66A).","es":""}},{"id":"C","text":{"fr":"","en":"The margin of the reinsurance contract is adjusted and a loss-recovery component recognises the expected recovery with the loss.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The reinsurance contract is itself onerous and its loss is recognised in place of that of the underlying group.","es":""},"correct":false,"feedback":{"fr":"","en":"The loss of the onerous underlying group stays recognised on that group: the reinsurance contract does not take its place, it recognises the expected recovery (IFRS 17, para. 66A). Rule to remember: The reinsurance contract held recognises a recovery (IFRS 17, para. 66A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000060","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.REVENUE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000060","tested_point":"QST.IFRS17.000060","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000012","section_id":"rule-revenue"},"references":["IFRS 17 §83"],"exercise":{"prompt":{"fr":"","en":"What does insurance revenue presented in profit or loss for groups of contracts issued reflect?","es":""},"explanation":{"fr":"","en":"The entity presents in profit or loss the insurance revenue of the groups of contracts issued, which reflects the provision of services for an amount representing the consideration expected (IFRS 17, para. 83). Trap: Equating revenue with premiums received. Rule to remember: Insurance revenue = services provided for the expected consideration (IFRS 17, para. 83).","es":""},"common_error":{"fr":"","en":"Presenting premiums received as revenue rather than the consideration for services provided.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The premiums received during the period, whether or not they cover services already provided.","es":""},"correct":false,"feedback":{"fr":"","en":"Premiums received are cash flows, not revenue: insurance revenue reflects the provision of services, whatever the timing of receipts (IFRS 17, para. 83). Rule to remember: Revenue follows the services provided (IFRS 17, para. 83).","es":""}},{"id":"B","text":{"fr":"","en":"The provision of services, for an amount that represents the consideration expected for those services.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The incurred claims reimbursed to policyholders during the period, net of premiums.","es":""},"correct":false,"feedback":{"fr":"","en":"Incurred claims belong to insurance service expenses, not to revenue: revenue represents the consideration for services provided (IFRS 17, para. 83). Rule to remember: Revenue = consideration for services (IFRS 17, para. 83).","es":""}},{"id":"D","text":{"fr":"","en":"The return on the investments backing the contracts, for the part belonging to the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"The return on investments is not part of insurance revenue: it reflects the provision of services for the consideration expected (IFRS 17, para. 83). Rule to remember: Insurance revenue excludes the return on investments (IFRS 17, para. 83).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000061","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.REVENUE"],"dimension":"CALCULATION","context":"V1_QST.IFRS17.000061","tested_point":"QST.IFRS17.000061","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000012","section_id":"rule-revenue"},"references":["IFRS 17 §83"],"exercise":{"prompt":{"fr":"","en":"Lagune SA applies the premium allocation approach to a group of twelve-month contracts that brings it {annual_premium} of premiums. Case convention: the provision of services is spread in proportion to the time elapsed. Calculate the insurance revenue of the first {months_first} months, then the cumulative revenue at the end of the first {months_second} months.","es":""},"explanation":{"fr":"","en":"Method: revenue of the first three months 3,600 × 3 ÷ 12 = 900; cumulative revenue of the first nine months 3,600 × 9 ÷ 12 = 2,700. Insurance revenue reflects the provision of services for the consideration expected (IFRS 17, para. 83); the spread in proportion to time is a case convention. Trap: Presenting the premiums received as revenue. Rule to remember: Revenue follows the provision of services, here spread in proportion to time (IFRS 17, para. 83).","es":""},"common_error":{"fr":"","en":"Recognising the annual premium as revenue as soon as it is received instead of spreading it.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_premium","value":"3600","unit":"EUR"},{"id":"months_first","value":"3","unit":"MONTHS"},{"id":"months_second","value":"9","unit":"MONTHS"}],"data":[{"label":{"fr":"","en":"Premiums of the group for twelve months","es":""},"value":"3600","unit":"EUR"},{"label":{"fr":"","en":"First months (short period)","es":""},"value":"3","unit":"MONTHS"},{"label":{"fr":"","en":"First months (long period)","es":""},"value":"9","unit":"MONTHS"}],"steps":[{"id":"REVENUE_FIRST","label":{"fr":"","en":"Insurance revenue of the first period","es":""},"answer":900,"tolerance":0,"unit":"EUR"},{"id":"REVENUE_SECOND","label":{"fr":"","en":"Cumulative insurance revenue of the second period","es":""},"answer":2700,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"REVENUE_FIRST","meaning":{"fr":"","en":"Insurance revenue of the first period","es":""},"expression":"a * b / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Premiums of the group for twelve months","es":""},"value":3600,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"First months (short period)","es":""},"value":3,"unit":"MONTHS"}],"result":900,"unit":"EUR"},{"step":"REVENUE_SECOND","meaning":{"fr":"","en":"Cumulative insurance revenue of the second period","es":""},"expression":"a * b / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Premiums of the group for twelve months","es":""},"value":3600,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"First months (long period)","es":""},"value":9,"unit":"MONTHS"}],"result":2700,"unit":"EUR"}],"rationale":{"fr":"","en":"Revenue follows the provision of services, here spread in proportion to time (IFRS 17, para. 83).","es":""},"references":["REF.IFRS17.83"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000062","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.REVENUE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS17.000062","tested_point":"QST.IFRS17.000062","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000012","section_id":"rule-revenue"},"references":["IFRS 17 §83"],"exercise":{"prompt":{"fr":"","en":"An analyst presents as insurance revenue of the year the whole premium of 3,600 euros received at the issue of a three-year contract, writing: \"The premium is received, so it is revenue for the year.\" What is the error in this reasoning?","es":""},"explanation":{"fr":"","en":"Insurance revenue reflects the provision of services for an amount representing the expected consideration (IFRS 17, para. 83). For a three-year contract, the revenue of the year corresponds to the services provided during the year, not to the whole premium received. Trap: Presenting the whole premium as revenue as soon as it is received. Rule to remember: Revenue follows the provision of services, not receipt (IFRS 17, para. 83).","es":""},"common_error":{"fr":"","en":"Recognising as revenue the whole of a multi-year premium as soon as it is received.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It should have presented these premiums in insurance service expenses, because they are due to the insurer.","es":""},"correct":false,"feedback":{"fr":"","en":"Premiums are not expenses: they contribute to the consideration for services, and the analyst's error is to present them as revenue on receipt rather than as services are provided (IFRS 17, para. 83). Rule to remember: Revenue = services provided (IFRS 17, para. 83).","es":""}},{"id":"B","text":{"fr":"","en":"It should have waited for the end of the contract to present the revenue, the consideration not being earned until then.","es":""},"correct":false,"feedback":{"fr":"","en":"Revenue is not deferred to the end of the contract: it reflects the provision of services over the coverage, hence year by year (IFRS 17, para. 83). Rule to remember: Revenue as services are provided (IFRS 17, para. 83).","es":""}},{"id":"C","text":{"fr":"","en":"It confuses insurance revenue and finance income: premiums received are insurance finance income.","es":""},"correct":false,"feedback":{"fr":"","en":"Insurance finance income or expenses come from the time value of money and financial risk, not from the receipt of premiums; this classification does not answer the error made (IFRS 17, para. 83). Rule to remember: Premiums are not finance income (IFRS 17, para. 83).","es":""}},{"id":"D","text":{"fr":"","en":"It links revenue to receipt, whereas revenue reflects the provision of services for the expected consideration during the year.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000063","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.SERVICE_EXPENSES"],"dimension":"CALCULATION","context":"V1_QST.IFRS17.000063","tested_point":"QST.IFRS17.000063","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000012","section_id":"rule-expenses"},"references":["IFRS 17 §84"],"exercise":{"prompt":{"fr":"","en":"Mosaïque SA reports for the period insurance revenue of {insurance_revenue}, incurred claims of {incurred_claims} and other insurance expenses of {other_expenses} (case data). It also repaid {investment_component_repaid} to policyholders in respect of an investment component. Calculate the insurance service result.","es":""},"explanation":{"fr":"","en":"Method: insurance service expenses 7,200 + 1,100 = 8,300; result 12,000 − 8,300 = 3,700. Insurance service expenses comprise incurred claims, excluding repayments of investment components, and other insurance expenses (IFRS 17, para. 84): the 600 repaid in respect of the investment component are not included. Trap: Also deducting the repayment of the investment component. Rule to remember: Repayments of investment components are not expenses (IFRS 17, para. 84).","es":""},"common_error":{"fr":"","en":"Including in expenses the repayment of an investment component.","es":""},"format":"CALCULATION","placeholders":[{"id":"insurance_revenue","value":"12000","unit":"EUR"},{"id":"incurred_claims","value":"7200","unit":"EUR"},{"id":"other_expenses","value":"1100","unit":"EUR"},{"id":"investment_component_repaid","value":"600","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Insurance revenue","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Incurred claims","es":""},"value":"7200","unit":"EUR"},{"label":{"fr":"","en":"Other insurance expenses","es":""},"value":"1100","unit":"EUR"},{"label":{"fr":"","en":"Repayments of investment components","es":""},"value":"600","unit":"EUR"}],"steps":[{"id":"INSURANCE_SERVICE_RESULT","label":{"fr":"","en":"Insurance service result","es":""},"answer":3700,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INSURANCE_SERVICE_RESULT","meaning":{"fr":"","en":"Insurance service result","es":""},"expression":"a - (b + c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Insurance revenue","es":""},"value":12000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Incurred claims","es":""},"value":7200,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Other insurance expenses","es":""},"value":1100,"unit":"EUR"}],"result":3700,"unit":"EUR"}],"rationale":{"fr":"","en":"Repayments of investment components are not expenses (IFRS 17, para. 84).","es":""},"references":["REF.IFRS17.84"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000064","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.FINANCE_INCOME_EXPENSE"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000064","tested_point":"QST.IFRS17.000064","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000012","section_id":"rule-finance"},"references":["IFRS 17 §87"],"exercise":{"prompt":{"fr":"","en":"The carrying amount of a group of contracts increases by 550 euros during the period: 150 euros come from the effect of the time value of money on the liability (unwinding) and 400 euros from an excess of incurred claims over expected claims (case data). Which part of the increase is an insurance finance expense?","es":""},"explanation":{"fr":"","en":"Insurance finance income or expenses are the change in the carrying amount of the group that results from the effect of the time value of money and financial risk (IFRS 17, para. 87). The 150 euros of unwinding are the effect of time value; the excess claims of 400 euros are not an effect of time value or of financial risk. Trap: Classifying the whole change in the liability as a finance expense. Rule to remember: Financial = effect of time value and financial risk on the carrying amount (IFRS 17, para. 87).","es":""},"common_error":{"fr":"","en":"Presenting the whole change in the carrying amount of the group as finance expense.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The 550 euros, since every change in the carrying amount of the group is financial.","es":""},"correct":false,"feedback":{"fr":"","en":"Not every change in the carrying amount is financial: the rule retains only the change that results from the time value of money and financial risk. The excess claims do not result from them (IFRS 17, para. 87). Rule to remember: Only the part due to time value and financial risk is financial (IFRS 17, para. 87).","es":""}},{"id":"B","text":{"fr":"","en":"The 150 euros of unwinding; the 400 euros are not insurance finance expenses.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The 400 euros of excess claims; the 150 euros of unwinding are not financial.","es":""},"correct":false,"feedback":{"fr":"","en":"The answer reverses the two amounts: unwinding is the effect of the time value of money, hence financial, whereas excess claims are not an effect of time or of financial risk (IFRS 17, para. 87). Rule to remember: Time value = financial (IFRS 17, para. 87).","es":""}},{"id":"D","text":{"fr":"","en":"Neither the 150 euros nor the 400 euros: finance results come from the assets held, not from the liability.","es":""},"correct":false,"feedback":{"fr":"","en":"The rule concerns the change in the carrying amount of the group, that is, of the liability: the unwinding of the liability is included. The source of the finance result is not limited to the assets held (IFRS 17, para. 87). Rule to remember: The change in the liability due to time value is financial (IFRS 17, para. 87).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000065","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.OCI_DISAGGREGATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000065","tested_point":"QST.IFRS17.000065","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000013","section_id":"rule-oci"},"references":["IFRS 17 §88"],"exercise":{"prompt":{"fr":"","en":"What choice does IFRS 17 give the entity for presenting insurance finance income or expenses?","es":""},"explanation":{"fr":"","en":"The entity chooses, portfolio by portfolio, to recognise all insurance finance income or expenses in profit or loss or to split them between profit or loss, by systematic allocation, and other comprehensive income (IFRS 17, para. 88). Trap: Choosing for the whole entity or according to the profitability of a group. Rule to remember: Choice per portfolio between everything in profit or loss and a split with other comprehensive income (IFRS 17, para. 88).","es":""},"common_error":{"fr":"","en":"Applying the choice to the whole entity or tying it to the profitability of a group.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To choose once for the whole entity, without distinguishing portfolios, between profit or loss and other comprehensive income, for the whole period.","es":""},"correct":false,"feedback":{"fr":"","en":"The choice is made portfolio by portfolio, not once for the whole entity: two portfolios of the same entity may follow different options (IFRS 17, para. 88). Rule to remember: Choice per portfolio (IFRS 17, para. 88).","es":""}},{"id":"B","text":{"fr":"","en":"To recognise everything in other comprehensive income, with no possibility of taking part of it to profit or loss for the period.","es":""},"correct":false,"feedback":{"fr":"","en":"Other comprehensive income receives only a part split by systematic allocation, the other part going to profit or loss: taking everything to other comprehensive income is not the option described (IFRS 17, para. 88). Rule to remember: Split between profit or loss and other comprehensive income (IFRS 17, para. 88).","es":""}},{"id":"C","text":{"fr":"","en":"To choose group by group, according to the profitability of each group, between profit or loss and other comprehensive income for the period.","es":""},"correct":false,"feedback":{"fr":"","en":"The level of the choice is the portfolio, not the group, and the criterion is not profitability: it is a presentation option (IFRS 17, para. 88). Rule to remember: Option per portfolio, not per group (IFRS 17, para. 88).","es":""}},{"id":"D","text":{"fr":"","en":"To choose, per portfolio, between all in profit or loss and a split with other comprehensive income (systematic allocation).","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000067","standard_id":"IFRS17","concept_ids":["IFRS17.PRESENTATION.DISCLOSURES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000067","tested_point":"QST.IFRS17.000067","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000013","section_id":"rule-disclosures"},"references":["IFRS 17 §100","IFRS 17 §117","IFRS 17 §78"],"exercise":{"prompt":{"fr":"","en":"Which statements about presentation and disclosure under IFRS 17 are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"The entity presents separately in the statement of financial position the portfolios of contracts issued that are assets and those that are liabilities (IFRS 17, para. 78), provides reconciliations of the opening and closing balances of the liability for remaining coverage, the loss components and the liability for incurred claims (IFRS 17, para. 100), and information about significant judgements and their changes (IFRS 17, para. 117). Trap: Confusing the reconciliation of balances with net profit, or keeping judgements internal. Rule to remember: Separate presentation, reconciliations of balances, significant judgements (IFRS 17, paras. 78, 100 and 117).","es":""},"common_error":{"fr":"","en":"Limiting the information to net profit or considering that significant judgements need not be communicated.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity presents separately in the statement of financial position the portfolios of contracts issued that are assets and those that are liabilities.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The reconciliation required concerns the net profit of the year, not the balances of the liabilities.","es":""},"correct":false,"feedback":{"fr":"","en":"The reconciliations required concern the opening and closing balances of the liabilities, not the net profit of the year (IFRS 17, para. 100). Rule to remember: Reconciliation of liability balances (IFRS 17, para. 100).","es":""}},{"id":"C","text":{"fr":"","en":"The entity provides reconciliations of the opening and closing balances of the liability for remaining coverage, the loss components and the liability for incurred claims.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The entity provides information about significant judgements made in applying the standard and changes in those judgements.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Management's judgements remain internal to the entity and are not communicated in the financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"Significant judgements are subject to disclosure, including their changes: they do not remain internal to the entity (IFRS 17, para. 117). Rule to remember: Information about significant judgements (IFRS 17, para. 117).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000068","standard_id":"IFRS17","concept_ids":["IFRS17.MODIFICATION.MODIFICATION_DERECOGNITION"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000068","tested_point":"QST.IFRS17.000068","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000014","section_id":"rule-modification"},"references":["IFRS 17 §72","IFRS 17 §74"],"exercise":{"prompt":{"fr":"","en":"The parties to an insurance contract of Tilleul SA change its terms. Had these new terms existed from inception, the contract would have been excluded from the scope of IFRS 17 (case fact). Which treatment applies to the modified contract?","es":""},"explanation":{"fr":"","en":"A modification that, had its terms existed at inception, would have excluded the contract from the scope, changed the separation, substantially changed the contract boundary or changed the group, or that changes the direct participation status or removes eligibility for the premium allocation approach, leads to derecognition of the original contract and recognition of a new contract (IFRS 17, para. 72). An entity derecognises an insurance contract when, and only when, it is extinguished or when a condition of paragraph 72 applies (IFRS 17, para. 74). Professional judgement: assessing whether the new terms would have excluded the contract at inception. Trap: Treating the modification as a simple adjustment of the margin. Rule to remember: Modification that would have excluded the contract at inception = derecognition and new contract (IFRS 17, paras. 72 and 74).","es":""},"common_error":{"fr":"","en":"Treating as a margin adjustment a modification that would have excluded the contract from the scope.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Derecognise the original contract and recognise a new contract.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Keep the original contract and adjust its margin for the difference in cash flows due to the modification.","es":""},"correct":false,"feedback":{"fr":"","en":"The rule does not provide for a simple adjustment of the margin in this case: the modification that would have excluded the contract from the scope leads to derecognition of the original contract (IFRS 17, para. 72). Rule to remember: Derecognition and new contract (IFRS 17, para. 72).","es":""}},{"id":"C","text":{"fr":"","en":"Keep the original contract unchanged until it is extinguished and treat the new terms separately.","es":""},"correct":false,"feedback":{"fr":"","en":"Keeping the original contract until it is extinguished ignores the effect of the modification: a condition of paragraph 72 applies and calls for derecognition (IFRS 17, para. 74). Rule to remember: A condition of paragraph 72 leads to derecognition (IFRS 17, para. 74).","es":""}},{"id":"D","text":{"fr":"","en":"Derecognise the original contract without recognising a new contract.","es":""},"correct":false,"feedback":{"fr":"","en":"Derecognition comes with the recognition of a new contract: the entity does not make the modified commitment disappear without recognising it under its new terms (IFRS 17, para. 72). Rule to remember: New contract recognised (IFRS 17, para. 72).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000069","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.FULL_RETROSPECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000069","tested_point":"QST.IFRS17.000069","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"rule-retrospective"},"references":["IFRS 17 §C3"],"exercise":{"prompt":{"fr":"","en":"On transition, the entity applies IFRS 17 retrospectively in full for each group of contracts, unless that application is impracticable.","es":""},"explanation":{"fr":"","en":"On transition, the entity applies the standard retrospectively in full, unless that is impracticable (within the meaning of IAS 8), for each group of contracts (IFRS 17, para. C3). Trap: Choosing a simplified approach without having established impracticability. Rule to remember: Full retrospective first; another approach only if impracticable (IFRS 17, para. C3).","es":""},"common_error":{"fr":"","en":"Adopting a simplified approach without having established that full retrospective application is impracticable.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000070","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.IMPRACTICABILITY_CHOICE","IFRS17.TRANSITION.FULL_RETROSPECTIVE"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000070","tested_point":"QST.IFRS17.000070","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"rule-retrospective"},"references":["IFRS 17 §C5","IFRS 17 §C3"],"exercise":{"prompt":{"fr":"","en":"On transition, Delmas SA finds that full retrospective application is impracticable for its group G1 and practicable for its group G2 (management's assessments). Which transition approach complies with the rule for each of the two groups?","es":""},"explanation":{"fr":"","en":"On transition, the entity applies the standard retrospectively in full, unless that is impracticable, for each group (IFRS 17, para. C3). If it is impracticable for a group, the entity chooses between the modified retrospective approach and the fair value approach; no order of preference is set between the two and they are not combined for the same group (IFRS 17, para. C5). Professional judgement: assessing impracticability group by group. Trap: Imposing one approach or combining the two. Rule to remember: Impracticable: choice between the two approaches, one per group (IFRS 17, para. C5).","es":""},"common_error":{"fr":"","en":"Imposing one approach on an impracticable group or combining the two approaches for the same group.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"G1: fair value approach imposed, the modified retrospective approach being excluded; G2: full retrospective application.","es":""},"correct":false,"feedback":{"fr":"","en":"No order of preference is set between the modified retrospective approach and the fair value approach: the entity chooses, and the modified approach is not excluded (IFRS 17, para. C5). Rule to remember: Choice between the two approaches, no preference (IFRS 17, para. C5).","es":""}},{"id":"B","text":{"fr":"","en":"G1: combination of the two approaches for the same group; G2: full retrospective application.","es":""},"correct":false,"feedback":{"fr":"","en":"The two approaches are not combined for the same group: the entity uses one or the other for G1, according to its own assessment (IFRS 17, para. C5). Rule to remember: One approach per group (IFRS 17, para. C5).","es":""}},{"id":"C","text":{"fr":"","en":"G1: choice between the modified retrospective approach and the fair value approach; G2: full retrospective application.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"G1: choice between the two approaches; G2: free choice between the three approaches.","es":""},"correct":false,"feedback":{"fr":"","en":"For G2, full retrospective application is practicable: it is required, with no free choice among three approaches (IFRS 17, para. C3). Rule to remember: Full retrospective when practicable (IFRS 17, para. C3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000071","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.MODIFIED_RETROSPECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000071","tested_point":"QST.IFRS17.000071","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"rule-choice"},"references":["IFRS 17 §C6"],"exercise":{"prompt":{"fr":"","en":"What is the objective of the modified retrospective approach on transition?","es":""},"explanation":{"fr":"","en":"The modified retrospective approach aims at the outcome closest to full retrospective application, using reasonable and supportable information available without undue cost (IFRS 17, para. C6). Trap: Confusing it with the fair value approach or with an unlimited simplification. Rule to remember: Modified approach = outcome closest to full retrospective, using reasonable information (IFRS 17, para. C6).","es":""},"common_error":{"fr":"","en":"Confusing the modified retrospective approach with the fair value approach.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To reproduce full retrospective application exactly by rebuilding all the historical cash flows of the group since issue, whatever the cost.","es":""},"correct":false,"feedback":{"fr":"","en":"The modified approach does not rebuild all historical cash flows: it relies on reasonable and supportable information available without undue cost, while aiming at an outcome close to full application (IFRS 17, para. C6). Rule to remember: Close outcome, reasonable information (IFRS 17, para. C6).","es":""}},{"id":"B","text":{"fr":"","en":"To take as the margin the difference between the fair value of the group and its fulfilment cash flows at the transition date, with no historical restatement.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference between fair value and fulfilment cash flows describes the fair value approach, another transition approach, not the modified retrospective approach (IFRS 17, para. C6). Rule to remember: Do not confuse the two approaches (IFRS 17, para. C6).","es":""}},{"id":"C","text":{"fr":"","en":"To aim at the outcome closest to full retrospective application, using reasonable and supportable information available without undue cost.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"To apply any simplification that reduces the cost of preparation, even if the outcome departs from full application.","es":""},"correct":false,"feedback":{"fr":"","en":"The modified approach does not tolerate any simplification: it aims at the outcome closest to full application, which limits simplifications to those that come closer to it (IFRS 17, para. C6). Rule to remember: The aim is proximity to full application (IFRS 17, para. C6).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000072","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.FAIR_VALUE"],"dimension":"CALCULATION","context":"V1_QST.IFRS17.000072","tested_point":"QST.IFRS17.000072","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"rule-choice"},"references":["IFRS 17 §C20"],"exercise":{"prompt":{"fr":"","en":"At the transition date, Ondine SA applies the fair value approach to a group. The fair value of the group is {fair_value} (case data). Future flows are claims of {claims_amount} payable in two years and premiums of {premiums_amount} receivable in one year; the discount rate is {discount_rate} and the risk adjustment for non-financial risk is {risk_adjustment} (case data, management's judgement). Calculate the fulfilment cash flows of the group and the margin at the transition date.","es":""},"explanation":{"fr":"","en":"Method: present value of claims 4,840 ÷ 1.10^2 = 4,000; present value of premiums 1,100 ÷ 1.10 = 1,000; discounted net outflow 4,000 − 1,000 = 3,000; fulfilment cash flows 3,000 + 200 = 3,200; margin 4,500 − 3,200 = 1,300. Under the fair value approach, the margin is the difference between the fair value of the group and its fulfilment cash flows at the transition date (IFRS 17, para. C20). The fair value is case data here. Trap: Deducting the discounted net outflow from the fair value without adding the risk adjustment. Rule to remember: Transition margin = fair value − fulfilment cash flows (IFRS 17, para. C20).","es":""},"common_error":{"fr":"","en":"Omitting the risk adjustment from the fulfilment cash flows deducted from the fair value.","es":""},"format":"CALCULATION","placeholders":[{"id":"claims_amount","value":"4840","unit":"EUR"},{"id":"premiums_amount","value":"1100","unit":"EUR"},{"id":"discount_rate","value":"10","unit":"PERCENT"},{"id":"risk_adjustment","value":"200","unit":"EUR"},{"id":"fair_value","value":"4500","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Claims to be paid in two years","es":""},"value":"4840","unit":"EUR"},{"label":{"fr":"","en":"Premiums to be received in one year","es":""},"value":"1100","unit":"EUR"},{"label":{"fr":"","en":"Discount rate (case data)","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Risk adjustment for non-financial risk (case data)","es":""},"value":"200","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the group (case data)","es":""},"value":"4500","unit":"EUR"}],"steps":[{"id":"FULFILMENT_CASH_FLOWS","label":{"fr":"","en":"Fulfilment cash flows of the group","es":""},"answer":3200,"tolerance":0,"unit":"EUR"},{"id":"CSM","label":{"fr":"","en":"Margin at the transition date","es":""},"answer":1300,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CSM","meaning":{"fr":"","en":"Margin at the transition date","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the group (case data)","es":""},"value":4500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fulfilment cash flows of the group","es":""},"value":3200,"unit":"EUR"}],"result":1300,"unit":"EUR"}],"rationale":{"fr":"","en":"Transition margin = fair value − fulfilment cash flows (IFRS 17, para. C20).","es":""},"references":["REF.IFRS17.C20"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000073","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.AMENDMENTS_2020","IFRS17.AGGREGATION.ANNUAL_COHORTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000073","tested_point":"QST.IFRS17.000073","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000003","section_id":"rule-cohorts"},"references":["IFRS 17","IFRS 17 §22"],"exercise":{"prompt":{"fr":"","en":"What is to be remembered about the June 2020 amendments to IFRS 17?","es":""},"explanation":{"fr":"","en":"The June 2020 amendments to IFRS 17 cover the scope (credit cards, loans), acquisition cash flows, the loss-recovery component of reinsurance contracts held and the deferral of the effective date to 1 January 2023 (June 2020 amendments); the annual cohort requirement (IFRS 17, para. 22) is not changed by these amendments. Trap: forgetting one of the themes or believing that the 2020 amendments relaxed annual cohorts. Rule to remember: 2020: scope, acquisition cash flows, loss recovery, effective date 2023; cohorts unchanged (June 2020 amendments).","es":""},"common_error":{"fr":"","en":"Forgetting a theme of the 2020 amendments or attributing to them a relaxation of annual cohorts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They touch the scope, acquisition cash flows and the effective date (1 January 2023), but not reinsurance contracts held, without changing annual cohorts.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer forgets reinsurance contracts held: the June 2020 amendments include the loss-recovery component of the reinsurance contract held (June 2020 amendments). Rule to remember: 2020 also touches reinsurance held (June 2020 amendments).","es":""}},{"id":"B","text":{"fr":"","en":"They touch the scope, acquisition cash flows, reinsurance contracts held and the effective date (1 January 2023), without changing annual cohorts.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"They touch the scope, acquisition cash flows, reinsurance contracts held and the effective date (1 January 2023), and also make annual cohorts optional.","es":""},"correct":false,"feedback":{"fr":"","en":"The June 2020 amendments did not make annual cohorts optional: the requirement remains, and the only existing exemption is specific to the European Union and comes from a separate regulation (June 2020 amendments). Rule to remember: no IASB option on cohorts (June 2020 amendments).","es":""}},{"id":"D","text":{"fr":"","en":"They touch the scope, reinsurance contracts held and the effective date (1 January 2023), but not acquisition cash flows, without changing annual cohorts.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer forgets acquisition cash flows: the June 2020 amendments include the allocation of acquisition cash flows and the related asset (June 2020 amendments). Rule to remember: 2020 also touches acquisition cash flows (June 2020 amendments).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000074","standard_id":"IFRS17","concept_ids":["IFRS17.TRANSITION.COMPARATIVE_OVERLAY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000074","tested_point":"QST.IFRS17.000074","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"rule-overlay"},"references":["IFRS 17 §C28A"],"exercise":{"prompt":{"fr":"","en":"An entity that applies IFRS 17 and IFRS 9 at the same time may, for financial assets whose comparatives are not restated, present comparative information as if the classification and measurement requirements of IFRS 9 had been applied.","es":""},"explanation":{"fr":"","en":"An entity that applies IFRS 17 and IFRS 9 at the same time may, for financial assets whose comparatives are not restated, present comparative information as if the classification and measurement requirements of IFRS 9 had been applied: this is the classification overlay (IFRS 17, para. C28A, December 2021 amendment). Trap: Believing that comparatives must always be restated under IFRS 9. Rule to remember: Classification overlay available for the comparatives of financial assets not restated (IFRS 17, para. C28A).","es":""},"common_error":{"fr":"","en":"Requiring the restatement of the comparatives of financial assets when the classification overlay is available.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000075","standard_id":"IFRS17","concept_ids":["IFRS17.INTERACTIONS.IFRS9","IFRS17.SCOPE.COMBINATION_SEPARATION"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000075","tested_point":"QST.IFRS17.000075","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000002","section_id":"rule-separation"},"references":["IFRS 17 §10","IFRS 17"],"exercise":{"prompt":{"fr":"","en":"An insurance contract of Solène SA contains an embedded derivative that must be separated and a distinct investment component (case facts). Under which standard is each of these two components accounted for after separation?","es":""},"explanation":{"fr":"","en":"An insurance contract may contain components that fall under other standards, which the standard has separated under its paras. 11 to 13 (IFRS 17, para. 10): embedded derivatives and distinct investment components under IFRS 9, distinct goods or services under IFRS 15. Here, the derivative and the investment component both follow IFRS 9; this point is an interaction with IFRS 9, whose own rules are not detailed here. Trap: Leaving in IFRS 17 a component that must be separated. Rule to remember: Embedded derivative and distinct investment component: IFRS 9 (IFRS 17, para. 10).","es":""},"common_error":{"fr":"","en":"Leaving the derivative or the investment component in the measurement of the insurance contract.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Both remain measured under IFRS 17, with the fulfilment cash flows of the contract.","es":""},"correct":false,"feedback":{"fr":"","en":"Both components are separated from the insurance contract: they do not stay measured with the fulfilment cash flows of IFRS 17 but follow IFRS 9 (IFRS 17, para. 10). Rule to remember: Separated, hence accounted for under IFRS 9 (IFRS 17, para. 10).","es":""}},{"id":"B","text":{"fr":"","en":"The derivative follows IFRS 17 and the investment component follows IFRS 9.","es":""},"correct":false,"feedback":{"fr":"","en":"The embedded derivative is separated and accounted for under IFRS 9, not IFRS 17, and the distinct investment component also follows IFRS 9: the allocation proposed mixes the two (IFRS 17, para. 10). Rule to remember: IFRS 9 for both components (IFRS 17, para. 10).","es":""}},{"id":"C","text":{"fr":"","en":"The derivative follows IFRS 9 and the investment component follows IFRS 15.","es":""},"correct":false,"feedback":{"fr":"","en":"The distinct investment component follows IFRS 9, not IFRS 15: IFRS 15 concerns promises to transfer distinct goods or services, a third type of component (IFRS 17, para. 10). Rule to remember: Investment component: IFRS 9 (IFRS 17, para. 10).","es":""}},{"id":"D","text":{"fr":"","en":"Both are accounted for under IFRS 9.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000076","standard_id":"IFRS17","concept_ids":["IFRS17.INTERACTIONS.IFRS15","IFRS17.SCOPE.COMBINATION_SEPARATION"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000076","tested_point":"QST.IFRS17.000076","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000002","section_id":"rule-separation"},"references":["IFRS 17 §10","IFRS 17"],"exercise":{"prompt":{"fr":"","en":"Mistral SA offers, with an insurance contract, an equipment maintenance service that the case describes as a distinct good or service (case assumption). How should this service be treated?","es":""},"explanation":{"fr":"","en":"The standard has promises to transfer distinct goods or services separated under its paras. 11 to 13, to which para. 10 refers, and accounted for under the standard on revenue from contracts with customers (IFRS 17, para. 10). The maintenance service, judged distinct in the case, follows that standard; this point is an interaction with IFRS 15, whose own rules are not detailed here. Trap: Keeping a distinct service in the insurance contract. Rule to remember: Distinct goods or services: separated and accounted for under the revenue standard (IFRS 17, para. 10).","es":""},"common_error":{"fr":"","en":"Keeping a distinct service in the measurement of the insurance contract.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Keep it in the insurance contract, measured with the fulfilment cash flows of IFRS 17.","es":""},"correct":false,"feedback":{"fr":"","en":"The distinct service is separated from the insurance contract: it does not stay in the IFRS 17 measurement with the fulfilment cash flows (IFRS 17, para. 10). Rule to remember: The distinct service is separated (IFRS 17, para. 10).","es":""}},{"id":"B","text":{"fr":"","en":"Separate it from the insurance contract and account for it under the standard on revenue from contracts with customers (IFRS 15).","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Separate it from the insurance contract and account for it under IFRS 9 as a financial instrument.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 9 covers embedded derivatives and distinct investment components; a maintenance service is not a financial instrument (IFRS 17, para. 10). Rule to remember: Distinct service: revenue standard, not IFRS 9 (IFRS 17, para. 10).","es":""}},{"id":"D","text":{"fr":"","en":"Separate it from the insurance contract and account for it under the standard on provisions (IAS 37).","es":""},"correct":false,"feedback":{"fr":"","en":"The standard on provisions is not the one that the rule designates for a promise of distinct services: that falls under the standard on revenue from contracts with customers (IFRS 17, para. 10). Rule to remember: Distinct service: IFRS 15 (IFRS 17, para. 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000077","standard_id":"IFRS17","concept_ids":["IFRS17.INTERACTIONS.IAS37","IFRS17.SCOPE.CONTRACTS_IN_SCOPE"],"dimension":"APPLICATION","context":"V1_QST.IFRS17.000077","tested_point":"QST.IFRS17.000077","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000001","section_id":"understand"},"references":["IFRS 17 §3","IFRS 17"],"exercise":{"prompt":{"fr":"","en":"Opaline SA has issued an insurance contract that falls within the scope of IFRS 17. A covered claim has occurred and is not yet settled. How is the obligation to settle that claim measured?","es":""},"explanation":{"fr":"","en":"The standard applies to insurance contracts that the entity issues (IFRS 17, para. 3): the resulting liabilities are measured under IFRS 17 and not as IAS 37 provisions, the boundary between the two running through the scope. This point is an interaction with IAS 37, whose own rules are not detailed here. Trap: Providing under IAS 37 for an obligation arising from an insurance contract issued. Rule to remember: Insurance contract issued = liability measured under IFRS 17 (IFRS 17, para. 3).","es":""},"common_error":{"fr":"","en":"Providing under IAS 37 for an obligation arising from an insurance contract issued.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an IAS 37 provision, at the best estimate of the outflow of resources.","es":""},"correct":false,"feedback":{"fr":"","en":"The contract falls within IFRS 17 (IFRS 17, para. 3): the obligation to settle the claim is part of the insurance contract liability, measured under the standard, and not of an IAS 37 provision. Rule to remember: Insurance contract liabilities are measured under IFRS 17 (IFRS 17, para. 3).","es":""}},{"id":"B","text":{"fr":"","en":"As a financial liability at amortised cost, under IFRS 9.","es":""},"correct":false,"feedback":{"fr":"","en":"An insurance contract issued is not measured as a financial instrument at amortised cost: it falls under the standard on insurance contracts (IFRS 17, para. 3). Rule to remember: The scope of IFRS 17 includes insurance contracts issued (IFRS 17, para. 3).","es":""}},{"id":"C","text":{"fr":"","en":"As an IAS 37 contingent liability, mentioned in the notes without being recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The obligation is certain in principle since the claim has occurred: it is recognised in the insurance contract liability, not mentioned as a contingent liability (IFRS 17, para. 3). Rule to remember: The contract liability is recognised (IFRS 17, para. 3).","es":""}},{"id":"D","text":{"fr":"","en":"As an insurance contract liability, measured under IFRS 17.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS17.000078","standard_id":"IFRS17","concept_ids":["IFRS17.INTERACTIONS.IFRS13_CONTEXT","IFRS17.TRANSITION.FAIR_VALUE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS17.000078","tested_point":"QST.IFRS17.000078","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS17","lesson_id":"LS.IFRS17.000015","section_id":"rule-choice"},"references":["IFRS 17 §C20","IFRS 17"],"exercise":{"prompt":{"fr":"","en":"In the fair value approach on transition, which standard governs the measurement of the fair value of the group of contracts used as the reference?","es":""},"explanation":{"fr":"","en":"Under the fair value approach, the contractual service margin is the difference between the fair value of the group (IFRS 13) and its fulfilment cash flows at the transition date (IFRS 17, para. C20). The fair value itself falls under IFRS 13; this point is an interaction, whose own rules are not detailed here. Trap: Looking for the definition of fair value in IFRS 9 or IAS 36. Rule to remember: The fair value of the transition approach refers to IFRS 13 (IFRS 17, para. C20).","es":""},"common_error":{"fr":"","en":"Looking for the definition of fair value in a standard other than IFRS 13.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 9, which deals with the measurement of financial instruments.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 9 does not govern the fair value of a group of insurance contracts: the reference in the fair value approach points to IFRS 13 (IFRS 17, para. C20). Rule to remember: Fair value of the group: IFRS 13 (IFRS 17, para. C20).","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 13, which defines fair value measurement.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IAS 36, which deals with the recoverable amount of assets.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 36 concerns the recoverable amount of assets, not the measurement of the fair value of a group of insurance contracts for the transition margin (IFRS 17, para. C20). Rule to remember: IFRS 13 governs fair value (IFRS 17, para. C20).","es":""}},{"id":"D","text":{"fr":"","en":"IFRS 15, which deals with revenue from contracts with customers.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 15 deals with revenue from contracts with customers and does not govern the fair value used for the transition margin, which refers to IFRS 13 (IFRS 17, para. C20). Rule to remember: Fair value refers to IFRS 13 (IFRS 17, para. C20).","es":""}}]},"scope":"CORE_STUDENT"}],"reviewTitles":{"LX.IFRS17.000001":"The insurance contract: scope, risk and significance — Understand: which contracts does IFRS 17 apply to?","LX.IFRS17.000002":"The insurance contract: scope, risk and significance — Understand: which contracts does IFRS 17 apply to?","LX.IFRS17.000003":"The insurance contract: scope, risk and significance — Understand: which contracts does IFRS 17 apply to?","LX.IFRS17.000004":"The insurance contract: scope, risk and significance — The rule: significant insurance risk is transferred","LX.IFRS17.000005":"The insurance contract: scope, risk and significance — The rule: significant insurance risk is transferred","LX.IFRS17.000006":"The insurance contract: scope, risk and significance — The rule: significant insurance risk is transferred","LX.IFRS17.000007":"The insurance contract: scope, risk and significance — Significant risk: the scenario with commercial substance","LX.IFRS17.000008":"The insurance contract: scope, risk and significance — Significant risk: the scenario with commercial substance","LX.IFRS17.000009":"The insurance contract: scope, risk and significance — Significant risk: the scenario with commercial substance","LX.IFRS17.000010":"The insurance contract: scope, risk and significance — Why this definition?","LX.IFRS17.000011":"Exclusions, choice of standard and separation of components — The main exclusions and the standard that deals with them","LX.IFRS17.000012":"Exclusions, choice of standard and separation of components — Understand: a contract that looks like insurance is not always insurance","LX.IFRS17.000013":"Exclusions, choice of standard and separation of components — The main exclusions and the standard that deals with them","LX.IFRS17.000014":"Exclusions, choice of standard and separation of components — The choice between IFRS 15 and IFRS 17 for fixed-fee services","LX.IFRS17.000015":"Exclusions, choice of standard and separation of components — The choice between IFRS 15 and IFRS 17 for fixed-fee services","LX.IFRS17.000016":"Exclusions, choice of standard and separation of components — Professional judgment: choosing the standard and documenting the separation","LX.IFRS17.000017":"Exclusions, choice of standard and separation of components — Combining contracts and separating components","LX.IFRS17.000018":"Exclusions, choice of standard and separation of components — Combining contracts and separating components","LX.IFRS17.000019":"Exclusions, choice of standard and separation of components — Professional judgment: choosing the standard and documenting the separation","LX.IFRS17.000020":"Portfolios, profitability groups and annual cohorts — The portfolio: similar risks, common management","LX.IFRS17.000021":"Portfolios, profitability groups and annual cohorts — The portfolio: similar risks, common management","LX.IFRS17.000022":"Portfolios, profitability groups and annual cohorts — Understand: why group contracts before measuring them?","LX.IFRS17.000023":"Portfolios, profitability groups and annual cohorts — The three profitability groups","LX.IFRS17.000024":"Portfolios, profitability groups and annual cohorts — The three profitability groups","LX.IFRS17.000025":"Portfolios, profitability groups and annual cohorts — The three profitability groups","LX.IFRS17.000026":"Portfolios, profitability groups and annual cohorts — Annual cohorts","LX.IFRS17.000027":"Portfolios, profitability groups and annual cohorts — Annual cohorts","LX.IFRS17.000028":"Portfolios, profitability groups and annual cohorts — Annual cohorts","LX.IFRS17.000029":"Portfolios, profitability groups and annual cohorts — European Union context: the annual cohort exemption","LX.IFRS17.000030":"Portfolios, profitability groups and annual cohorts — European Union context: the annual cohort exemption","LX.IFRS17.000031":"Portfolios, profitability groups and annual cohorts — European Union context: the annual cohort exemption","LX.IFRS17.000032":"Recognition date of the group and contract boundary — Understand: on what date is a group recognised in the balance sheet?","LX.IFRS17.000033":"Recognition date of the group and contract boundary — The rule applied to dates","LX.IFRS17.000034":"Recognition date of the group and contract boundary — The rule applied to dates","LX.IFRS17.000035":"Recognition date of the group and contract boundary — The contract boundary: which future cash flows to include?","LX.IFRS17.000036":"Recognition date of the group and contract boundary — The contract boundary: which future cash flows to include?","LX.IFRS17.000037":"Recognition date of the group and contract boundary — Professional judgment: reassessing the risk and setting the price","LX.IFRS17.000038":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — Understand: how much will it cost to fulfil the contract?","LX.IFRS17.000039":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — Numerical example: the fulfilment cash flows of group A","LX.IFRS17.000040":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — The adjustment for non-financial risk","LX.IFRS17.000041":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — Estimating future cash flows: explicit, unbiased, weighted","LX.IFRS17.000042":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — Estimating future cash flows: explicit, unbiased, weighted","LX.IFRS17.000043":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — Discounting: the rate reflects the liability, not the assets","LX.IFRS17.000044":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — Discounting: the rate reflects the liability, not the assets","LX.IFRS17.000045":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — Professional judgment: discount rate and risk adjustment","LX.IFRS17.000046":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — The adjustment for non-financial risk","LX.IFRS17.000047":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — The adjustment for non-financial risk","LX.IFRS17.000048":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — Numerical example: the fulfilment cash flows of group A","LX.IFRS17.000049":"The contractual service margin, the onerous group and acquisition cash flows — Numerical example: the initial margin of group A","LX.IFRS17.000050":"The contractual service margin, the onerous group and acquisition cash flows — Numerical example: the initial margin of group A","LX.IFRS17.000051":"The contractual service margin, the onerous group and acquisition cash flows — Understand: no profit on the first day","LX.IFRS17.000052":"The contractual service margin, the onerous group and acquisition cash flows — The onerous group: the loss straight away","LX.IFRS17.000053":"The contractual service margin, the onerous group and acquisition cash flows — The onerous group: the loss straight away","LX.IFRS17.000054":"The contractual service margin, the onerous group and acquisition cash flows — The initial recognition entries","LX.IFRS17.000055":"The contractual service margin, the onerous group and acquisition cash flows — Insurance acquisition cash flows","LX.IFRS17.000056":"The contractual service margin, the onerous group and acquisition cash flows — Insurance acquisition cash flows","LX.IFRS17.000057":"The contractual service margin, the onerous group and acquisition cash flows — Professional judgment: identifying an onerous group and allocating acquisition cash flows","LX.IFRS17.000058":"Liabilities for remaining coverage and for incurred claims, margin reconciliation — Understand: two liabilities within a single group","LX.IFRS17.000059":"Liabilities for remaining coverage and for incurred claims, margin reconciliation — What remaining coverage and incurred claims contain","LX.IFRS17.000060":"Liabilities for remaining coverage and for incurred claims, margin reconciliation — What remaining coverage and incurred claims contain","LX.IFRS17.000061":"Liabilities for remaining coverage and for incurred claims, margin reconciliation — The margin reconciliation: movements and order","LX.IFRS17.000062":"Liabilities for remaining coverage and for incurred claims, margin reconciliation — The margin reconciliation: movements and order","LX.IFRS17.000063":"Liabilities for remaining coverage and for incurred claims, margin reconciliation — Numerical example: a full reconciliation","LX.IFRS17.000064":"Liabilities for remaining coverage and for incurred claims, margin reconciliation — Which changes in estimates adjust the margin?","LX.IFRS17.000065":"Liabilities for remaining coverage and for incurred claims, margin reconciliation — Which changes in estimates adjust the margin?","LX.IFRS17.000066":"Liabilities for remaining coverage and for incurred claims, margin reconciliation — Which changes in estimates adjust the margin?","LX.IFRS17.000067":"Releasing the margin through coverage units and the loss component — The release in three steps","LX.IFRS17.000068":"Releasing the margin through coverage units and the loss component — The margin release entry","LX.IFRS17.000069":"Releasing the margin through coverage units and the loss component — Numerical example: a declining coverage","LX.IFRS17.000070":"Releasing the margin through coverage units and the loss component — Professional judgment: choosing the coverage unit","LX.IFRS17.000071":"Releasing the margin through coverage units and the loss component — When the group becomes onerous: the loss component","LX.IFRS17.000072":"Releasing the margin through coverage units and the loss component — When the group becomes onerous: the loss component","LX.IFRS17.000073":"Releasing the margin through coverage units and the loss component — When the group becomes onerous: the loss component","LX.IFRS17.000074":"Releasing the margin through coverage units and the loss component — When the group becomes onerous: the loss component","LX.IFRS17.000075":"The premium allocation approach: eligibility, measurement and acquisition cash flows — Eligibility: two conditions, either one","LX.IFRS17.000076":"The premium allocation approach: eligibility, measurement and acquisition cash flows — Eligibility: two conditions, either one","LX.IFRS17.000077":"The premium allocation approach: eligibility, measurement and acquisition cash flows — Professional judgment: “no significant difference” and the risk pattern","LX.IFRS17.000078":"The premium allocation approach: eligibility, measurement and acquisition cash flows — Measurement: the unearned premium, and the onerous test","LX.IFRS17.000079":"The premium allocation approach: eligibility, measurement and acquisition cash flows — Numerical example: an annual policy tracked over three months","LX.IFRS17.000080":"The premium allocation approach: eligibility, measurement and acquisition cash flows — Numerical example: an annual policy tracked over three months","LX.IFRS17.000081":"The premium allocation approach: eligibility, measurement and acquisition cash flows — The entries of the period","LX.IFRS17.000082":"The premium allocation approach: eligibility, measurement and acquisition cash flows — Measurement: the unearned premium, and the onerous test","LX.IFRS17.000083":"The premium allocation approach: eligibility, measurement and acquisition cash flows — Acquisition cash flows: deduct or expense?","LX.IFRS17.000084":"The premium allocation approach: eligibility, measurement and acquisition cash flows — Acquisition cash flows: deduct or expense?","LX.IFRS17.000085":"The premium allocation approach: eligibility, measurement and acquisition cash flows — The entries of the period","LX.IFRS17.000086":"Contracts with direct participation features and the variable fee approach — The three criteria, assessed at inception","LX.IFRS17.000087":"Contracts with direct participation features and the variable fee approach — Example: two contracts of Sérénis Vie","LX.IFRS17.000088":"Contracts with direct participation features and the variable fee approach — The three criteria, assessed at inception","LX.IFRS17.000089":"Contracts with direct participation features and the variable fee approach — The margin of a contract with direct participation","LX.IFRS17.000090":"Contracts with direct participation features and the variable fee approach — The margin of a contract with direct participation","LX.IFRS17.000091":"Contracts with direct participation features and the variable fee approach — The margin of a contract with direct participation","LX.IFRS17.000092":"Reinsurance held: separate measurement and loss recovery — Example: two treatments that do not offset each other","LX.IFRS17.000093":"Reinsurance held: separate measurement and loss recovery — What changes for the cedant","LX.IFRS17.000094":"Reinsurance held: separate measurement and loss recovery — Example: two treatments that do not offset each other","LX.IFRS17.000095":"Reinsurance held: separate measurement and loss recovery — Underlying loss and loss-recovery component","LX.IFRS17.000096":"Reinsurance held: separate measurement and loss recovery — Underlying loss and loss-recovery component","LX.IFRS17.000097":"Reinsurance held: separate measurement and loss recovery — Professional judgment: treaty date and the underlying group","LX.IFRS17.000098":"Insurance revenue, insurance service expenses and finance result — Understand: an income statement on two levels","LX.IFRS17.000099":"Insurance revenue, insurance service expenses and finance result — Insurance revenue: what is it made of?","LX.IFRS17.000100":"Insurance revenue, insurance service expenses and finance result — Insurance revenue: what is it made of?","LX.IFRS17.000101":"Insurance revenue, insurance service expenses and finance result — Insurance service expenses","LX.IFRS17.000102":"Insurance revenue, insurance service expenses and finance result — Numerical example: from revenue to the result of the period","LX.IFRS17.000103":"Insurance revenue, insurance service expenses and finance result — Insurance service expenses","LX.IFRS17.000104":"Insurance revenue, insurance service expenses and finance result — Insurance finance income and expenses","LX.IFRS17.000105":"Insurance revenue, insurance service expenses and finance result — Insurance finance income and expenses","LX.IFRS17.000106":"Insurance revenue, insurance service expenses and finance result — Understand: an income statement on two levels","LX.IFRS17.000107":"Insurance revenue, insurance service expenses and finance result — Numerical example: from revenue to the result of the period","LX.IFRS17.000108":"Disaggregation into other comprehensive income and disclosures — Understand: dampening the volatility of rates in profit or loss","LX.IFRS17.000109":"Disaggregation into other comprehensive income and disclosures — Numerical example: disaggregating the finance expense","LX.IFRS17.000110":"Disaggregation into other comprehensive income and disclosures — Numerical example: disaggregating the finance expense","LX.IFRS17.000111":"Disaggregation into other comprehensive income and disclosures — The policy choice: what it implies","LX.IFRS17.000112":"Disaggregation into other comprehensive income and disclosures — Presentation in the balance sheet and disclosures","LX.IFRS17.000113":"Disaggregation into other comprehensive income and disclosures — Presentation in the balance sheet and disclosures","LX.IFRS17.000114":"Disaggregation into other comprehensive income and disclosures — Professional judgment: systematic allocation and judgments to document","LX.IFRS17.000115":"Disaggregation into other comprehensive income and disclosures — Presentation in the balance sheet and disclosures","LX.IFRS17.000116":"Modification and derecognition of the contract — The modification test: conditions for derecognition","LX.IFRS17.000117":"Modification and derecognition of the contract — Understand: the contract changes along the way","LX.IFRS17.000118":"Modification and derecognition of the contract — The modification test: conditions for derecognition","LX.IFRS17.000119":"Modification and derecognition of the contract — Example: two endorsements at Assurances Navarre","LX.IFRS17.000120":"Transition: full approach, fallback, fair value and recent amendments — Understand: moving to IFRS 17 as if the standard had always existed","LX.IFRS17.000121":"Transition: full approach, fallback, fair value and recent amendments — The full retrospective approach in practice","LX.IFRS17.000122":"Transition: full approach, fallback, fair value and recent amendments — The full retrospective approach in practice","LX.IFRS17.000123":"Transition: full approach, fallback, fair value and recent amendments — If full retrospective is impracticable: the choice between two approaches","LX.IFRS17.000124":"Transition: full approach, fallback, fair value and recent amendments — Professional judgment: impracticability and choice of approach","LX.IFRS17.000125":"Transition: full approach, fallback, fair value and recent amendments — If full retrospective is impracticable: the choice between two approaches","LX.IFRS17.000126":"Transition: full approach, fallback, fair value and recent amendments — If full retrospective is impracticable: the choice between two approaches","LX.IFRS17.000127":"Transition: full approach, fallback, fair value and recent amendments — Professional judgment: impracticability and choice of approach","LX.IFRS17.000128":"Transition: full approach, fallback, fair value and recent amendments — Numerical example: the margin at fair value","LX.IFRS17.000129":"Transition: full approach, fallback, fair value and recent amendments — If full retrospective is impracticable: the choice between two approaches","LX.IFRS17.000130":"Transition: full approach, fallback, fair value and recent amendments — Numerical example: the margin at fair value","LX.IFRS17.000131":"Transition: full approach, fallback, fair value and recent amendments — The June 2020 amendments","LX.IFRS17.000132":"Transition: full approach, fallback, fair value and recent amendments — The June 2020 amendments","LX.IFRS17.000133":"Transition: full approach, fallback, fair value and recent amendments — The December 2021 amendment: the classification overlay","LX.IFRS17.000134":"Transition: full approach, fallback, fair value and recent amendments — The December 2021 amendment: the classification overlay","LX.IFRS17.000135":"Links with IFRS 9, IFRS 15, IAS 37 and IFRS 13, and the weight of Resource Group explanations — IFRS 9: derivatives, investment components and investments","LX.IFRS17.000136":"Links with IFRS 9, IFRS 15, IAS 37 and IFRS 13, and the weight of Resource Group explanations — IFRS 9: derivatives, investment components and investments","LX.IFRS17.000137":"Links with IFRS 9, IFRS 15, IAS 37 and IFRS 13, and the weight of Resource Group explanations — IFRS 9: derivatives, investment components and investments","LX.IFRS17.000138":"Links with IFRS 9, IFRS 15, IAS 37 and IFRS 13, and the weight of Resource Group explanations — Seller’s warranties, distinct services and IFRS 15","LX.IFRS17.000139":"Links with IFRS 9, IFRS 15, IAS 37 and IFRS 13, and the weight of Resource Group explanations — Seller’s warranties, distinct services and IFRS 15","LX.IFRS17.000140":"Links with IFRS 9, IFRS 15, IAS 37 and IFRS 13, and the weight of Resource Group explanations — Seller’s warranties, distinct services and IFRS 15","LX.IFRS17.000141":"Links with IFRS 9, IFRS 15, IAS 37 and IFRS 13, and the weight of Resource Group explanations — IAS 37 and IFRS 13: two other boundaries","LX.IFRS17.000142":"Links with IFRS 9, IFRS 15, IAS 37 and IFRS 13, and the weight of Resource Group explanations — Professional judgment: placing the boundary between standards","LX.IFRS17.000143":"Links with IFRS 9, IFRS 15, IAS 37 and IFRS 13, and the weight of Resource Group explanations — IAS 37 and IFRS 13: two other boundaries","LX.IFRS17.000144":"Links with IFRS 9, IFRS 15, IAS 37 and IFRS 13, and the weight of Resource Group explanations — IAS 37 and IFRS 13: two other boundaries","LX.IFRS17.000145":"Links with IFRS 9, IFRS 15, IAS 37 and IFRS 13, and the weight of Resource Group explanations — The Transition Resource Group: explanations, not standards","LX.IFRS17.000146":"Links with IFRS 9, IFRS 15, IAS 37 and IFRS 13, and the weight of Resource Group explanations — The Transition Resource Group: explanations, not standards","QST.IFRS17.000001":"The insurance contract: scope, risk and significance — Understand: which contracts does IFRS 17 apply to?","QST.IFRS17.000002":"The insurance contract: scope, risk and significance — Understand: which contracts does IFRS 17 apply to?","QST.IFRS17.000003":"Exclusions, choice of standard and separation of components — The main exclusions and the standard that deals with them","QST.IFRS17.000004":"Exclusions, choice of standard and separation of components — The main exclusions and the standard that deals with them","QST.IFRS17.000005":"Exclusions, choice of standard and separation of components — The choice between IFRS 15 and IFRS 17 for fixed-fee services","QST.IFRS17.000006":"The insurance contract: scope, risk and significance — The rule: significant insurance risk is transferred","QST.IFRS17.000007":"The insurance contract: scope, risk and significance — The rule: significant insurance risk is transferred","QST.IFRS17.000008":"The insurance contract: scope, risk and significance — The rule: significant insurance risk is transferred","QST.IFRS17.000009":"The insurance contract: scope, risk and significance — Significant risk: the scenario with commercial substance","QST.IFRS17.000011":"Exclusions, choice of standard and separation of components — Combining contracts and separating components","QST.IFRS17.000012":"Portfolios, profitability groups and annual cohorts — The portfolio: similar risks, common management","QST.IFRS17.000013":"Portfolios, profitability groups and annual cohorts — The portfolio: similar risks, common management","QST.IFRS17.000014":"Portfolios, profitability groups and annual cohorts — The three profitability groups","QST.IFRS17.000015":"Portfolios, profitability groups and annual cohorts — The three profitability groups","QST.IFRS17.000016":"Portfolios, profitability groups and annual cohorts — The three profitability groups","QST.IFRS17.000017":"Portfolios, profitability groups and annual cohorts — Annual cohorts","QST.IFRS17.000018":"Portfolios, profitability groups and annual cohorts — Annual cohorts","QST.IFRS17.000019":"Portfolios, profitability groups and annual cohorts — Annual cohorts","QST.IFRS17.000020":"Portfolios, profitability groups and annual cohorts — Annual cohorts","QST.IFRS17.000021":"Recognition date of the group and contract boundary — The rule applied to dates","QST.IFRS17.000022":"Recognition date of the group and contract boundary — The rule applied to dates","QST.IFRS17.000024":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — Understand: how much will it cost to fulfil the contract?","QST.IFRS17.000025":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — Understand: how much will it cost to fulfil the contract?","QST.IFRS17.000026":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — Understand: how much will it cost to fulfil the contract?","QST.IFRS17.000027":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — Estimating future cash flows: explicit, unbiased, weighted","QST.IFRS17.000028":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — Discounting: the rate reflects the liability, not the assets","QST.IFRS17.000029":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — Discounting: the rate reflects the liability, not the assets","QST.IFRS17.000030":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — The adjustment for non-financial risk","QST.IFRS17.000031":"Fulfilment cash flows: future cash flows, discounting and risk adjustment — The adjustment for non-financial risk","QST.IFRS17.000032":"The contractual service margin, the onerous group and acquisition cash flows — Understand: no profit on the first day","QST.IFRS17.000033":"The contractual service margin, the onerous group and acquisition cash flows — Understand: no profit on the first day","QST.IFRS17.000035":"The contractual service margin, the onerous group and acquisition cash flows — The onerous group: the loss straight away","QST.IFRS17.000036":"The contractual service margin, the onerous group and acquisition cash flows — The onerous group: the loss straight away","QST.IFRS17.000038":"The contractual service margin, the onerous group and acquisition cash flows — Insurance acquisition cash flows","QST.IFRS17.000039":"Liabilities for remaining coverage and for incurred claims, margin reconciliation — What remaining coverage and incurred claims contain","QST.IFRS17.000040":"Liabilities for remaining coverage and for incurred claims, margin reconciliation — What remaining coverage and incurred claims contain","QST.IFRS17.000041":"Liabilities for remaining coverage and for incurred claims, margin reconciliation — The margin reconciliation: movements and order","QST.IFRS17.000042":"Liabilities for remaining coverage and for incurred claims, margin reconciliation — The margin reconciliation: movements and order","QST.IFRS17.000043":"Liabilities for remaining coverage and for incurred claims, margin reconciliation — The margin reconciliation: movements and order","QST.IFRS17.000044":"Liabilities for remaining coverage and for incurred claims, margin reconciliation — Which changes in estimates adjust the margin?","QST.IFRS17.000045":"Releasing the margin through coverage units and the loss component — The release in three steps","QST.IFRS17.000046":"Releasing the margin through coverage units and the loss component — The release in three steps","QST.IFRS17.000048":"Releasing the margin through coverage units and the loss component — When the group becomes onerous: the loss component","QST.IFRS17.000049":"The premium allocation approach: eligibility, measurement and acquisition cash flows — Eligibility: two conditions, either one","QST.IFRS17.000050":"The premium allocation approach: eligibility, measurement and acquisition cash flows — Eligibility: two conditions, either one","QST.IFRS17.000051":"The premium allocation approach: eligibility, measurement and acquisition cash flows — Eligibility: two conditions, either one","QST.IFRS17.000052":"The premium allocation approach: eligibility, measurement and acquisition cash flows — Measurement: the unearned premium, and the onerous test","QST.IFRS17.000054":"The premium allocation approach: eligibility, measurement and acquisition cash flows — Acquisition cash flows: deduct or expense?","QST.IFRS17.000055":"Contracts with direct participation features and the variable fee approach — The three criteria, assessed at inception","QST.IFRS17.000056":"Contracts with direct participation features and the variable fee approach — The three criteria, assessed at inception","QST.IFRS17.000058":"Reinsurance held: separate measurement and loss recovery — What changes for the cedant","QST.IFRS17.000059":"Reinsurance held: separate measurement and loss recovery — Underlying loss and loss-recovery component","QST.IFRS17.000060":"Insurance revenue, insurance service expenses and finance result — Insurance revenue: what is it made of?","QST.IFRS17.000061":"Insurance revenue, insurance service expenses and finance result — Insurance revenue: what is it made of?","QST.IFRS17.000062":"Insurance revenue, insurance service expenses and finance result — Insurance revenue: what is it made of?","QST.IFRS17.000063":"Insurance revenue, insurance service expenses and finance result — Insurance service expenses","QST.IFRS17.000064":"Insurance revenue, insurance service expenses and finance result — Insurance finance income and expenses","QST.IFRS17.000065":"Disaggregation into other comprehensive income and disclosures — The policy choice: what it implies","QST.IFRS17.000067":"Disaggregation into other comprehensive income and disclosures — Presentation in the balance sheet and disclosures","QST.IFRS17.000068":"Modification and derecognition of the contract — The modification test: conditions for derecognition","QST.IFRS17.000069":"Transition: full approach, fallback, fair value and recent amendments — The full retrospective approach in practice","QST.IFRS17.000070":"Transition: full approach, fallback, fair value and recent amendments — The full retrospective approach in practice","QST.IFRS17.000071":"Transition: full approach, fallback, fair value and recent amendments — If full retrospective is impracticable: the choice between two approaches","QST.IFRS17.000072":"Transition: full approach, fallback, fair value and recent amendments — If full retrospective is impracticable: the choice between two approaches","QST.IFRS17.000073":"Portfolios, profitability groups and annual cohorts — Annual cohorts","QST.IFRS17.000074":"Transition: full approach, fallback, fair value and recent amendments — The December 2021 amendment: the classification overlay","QST.IFRS17.000075":"Exclusions, choice of standard and separation of components — Combining contracts and separating components","QST.IFRS17.000076":"Exclusions, choice of standard and separation of components — Combining contracts and separating components","QST.IFRS17.000077":"The insurance contract: scope, risk and significance — Understand: which contracts does IFRS 17 apply to?","QST.IFRS17.000078":"Transition: full approach, fallback, fair value and recent amendments — If full retrospective is impracticable: the choice between two approaches"}}