CERTYNEX IFRS ACADEMY

Under what conditions may an entity use the premium allocation approach for a group of contracts?

When both conditions are met: no significant difference expected from the general model and a coverage period of one year or less.

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.

When the entity chooses it, whatever the coverage duration and the difference from the general measurement model.

When either of two conditions is met: no significant difference expected, or a coverage period of one year or less for each contract.