Insurance acquisition cash flows

Learning objectives

• Explain that insurance acquisition cash flows are allocated to groups and may give rise to an asset before the group is recognised.L2
• Identify, in a case, the acquisition cash flows to be allocated and the group to which they relate.L3

Normative references

• IFRS 17 §28AThe entity allocates insurance acquisition cash flows to groups of contracts using a systematic and rational method (paras. B35A and B35B), unless it recognises them as expenses under para. 59(a); the asset recognised before the group is dealt with in para. 28B (2020 amendments).

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• The acquisition cash flows of a group cannot give rise to an asset before the group to which they relate has been recognised.L2