Disaggregation between profit or loss and OCI

Learning objectives

• Explain that the entity chooses, portfolio by portfolio, to present all insurance finance income or expenses in profit or loss or to disaggregate them between profit or loss and other comprehensive income.L1, L2
• Record the disaggregation entry to other comprehensive income from given amounts.L3

Normative references

• IFRS 17 §88Unless para. 89 applies, the entity makes an accounting policy choice either to include all insurance finance income or expenses for the period in profit or loss, or to disaggregate them between profit or loss (systematic allocation over the duration of the group) and other comprehensive income; the choice is applied to portfolios (para. B129).

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

2 questions

• What choice does IFRS 17 give the entity for presenting insurance finance income or expenses?L1
• Bélier SA has chosen, for a portfolio, to split its insurance finance expenses between profit or loss and other comprehensive income. The insurance finance expense of the period is {insurance_finance_expense}; the systematic allocation takes {profit_or_loss_part} to profit or loss (case assumption), the balance being recognised in other comprehensive income. Record the entry for the part recognised in other comprehensive income.L3