Contracts excluded from the scope

Learning objectives

• Give examples of contracts excluded from the Standard, including warranties provided by a manufacturer, dealer or retailer in connection with the sale of its goods or services.L1
• Distinguish, in a list of contracts, those excluded from the Standard and the Standard applicable to them.L2

Normative references

• IFRS 17 §7The scope exclusions include: warranties provided by a manufacturer, dealer or retailer in connection with the sale of its goods or services (cross-reference to IFRS 15); financial guarantee contracts, unless the issuer has previously asserted that it regards them as insurance contracts and elects IFRS 17, contract by contract and irrevocably; credit card contracts whose price does not reflect an assessment of the insurance risk of the individual customer, except for the insurance coverage component that IFRS 9 requires to be separated.

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

2 questions

• A company manufactures sofas and grants its customers a warranty on those it sells. How is this warranty treated under IFRS 17?L1
• Which statements about the exclusions from the scope of IFRS 17 are correct? More than one answer is possible.L2