Impracticability and the choice of approach

Learning objectives

• Explain that, if full retrospective application is impracticable for a group, the entity chooses between the modified retrospective approach and the fair value approach for that group.L2
• Justify the choice of approach for a given group.L3

Normative references

• IFRS 17 §C5If, and only if, retrospective application is impracticable for a group, the entity chooses, for that group, the modified retrospective approach (paras. C6 to C19A) or the fair value approach (paras. C20 to C24B); para. C5A also makes the fair value approach available for certain groups with direct participation features.

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

1 question

• On transition, Delmas SA finds that full retrospective application is impracticable for its group G1 and practicable for its group G2 (management's assessments). Which transition approach complies with the rule for each of the two groups?L3