CERTYNEX IFRS ACADEMY

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?

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.

It is an exception specific to the European Union for certain pooled or cash-flow matched contracts, with disclosure of the portfolios.

It is an exception that removes the annual cohort requirement for all insurance contracts issued by a European entity, with no further condition.

It is an exception that replaces the annual cohort with a three-year cohort for the contracts concerned.