CERTYNEX IFRS ACADEMY

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?

Expense them as they are incurred, since the coverage period of each contract in the group is one year or less.

Deduct them from the liability for remaining coverage in every case, expensing being excluded under this approach.

Expense them once the coverage period exceeds one year, and not before.

Expense them for this group as for any other, with no condition on the coverage duration.