CERTYNEX IFRS ACADEMY

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?

Derecognise the original contract and recognise a new contract.

Keep the original contract and adjust its margin for the difference in cash flows due to the modification.

Keep the original contract unchanged until it is extinguished and treat the new terms separately.

Derecognise the original contract without recognising a new contract.