Insurance service result, insurance finance expense, choice of disaggregation into other comprehensive income and checklist for the reconciliation of the liability

• Group or portfolio presented, period and composition of the liability

  TextRequired

  INSURANCE_REVENUE_AND_SERVICE_EXPENSES_OF_20X7

• Accounting policy choice for the finance expense of the portfolio

  Text

• Reinsurance contracts held: cover, underlying group, measurement

  Text

• Insurance revenue of the period

  Number

  150,000

• Claims incurred in the period

  Number

  95,000

• Other insurance service expenses of the period

  Number

  25,000

• Opening liability of the group

  Number

• Rate of the period for the accretion (case data)

  Number

• Part of the financial movement disaggregated into other comprehensive income (case assumption)

  Number

• Documents obtained and referenced (statements of the group, accounting policy note, statement of the liability balances)

  EvidenceRequired

IFRS 17 §88

• Points examined: revenue, expenses, finance result, disaggregation and reconciliation

  ChecklistRequired

  • Insurance revenue: provision of services for the consideration expected
  • Insurance service expenses: incurred claims and other insurance expenses
  • Insurance finance result: effect of the time value and of financial risk
  • Choice by portfolio: all in profit or loss or disaggregation between profit or loss and other comprehensive income
  • Opening and closing balances reconciled with the movements

IFRS 17 §88

• Insurance service result (revenue − claims − other expenses)

  Calculation

  30,000

  Insurance revenue of the period ; − Claims incurred in the period ; − Other insurance service expenses of the period

• Insurance finance expense of the period (opening liability × rate of the period)

  Calculation

  Opening liability of the group ; Rate of the period for the accretion (case data)

• Entry of the incurred claims

  Entry

  Account	Debit	Credit
  Insurance service expenses	95,000
  Insurance contract liability		95,000

• Entry of the finance expense in profit or loss

  Entry

  Debit Insurance finance expense ← Insurance finance expense of the period (opening liability × rate of the period) ; Credit Insurance contract liability ← Insurance finance expense of the period (opening liability × rate of the period)

• Entry of the part in other comprehensive income

  Entry

  Debit Other comprehensive income: insurance finance expense ← Part of the financial movement disaggregated into other comprehensive income (case assumption) ; Credit Insurance contract liability ← Part of the financial movement disaggregated into other comprehensive income (case assumption)

IFRS 17 §88

• Choice of disaggregation of the finance expense

  JudgmentRequired

  Not applicable

  Disaggregation between profit or loss and other comprehensive income / All in profit or loss / Not applicable

  Professional judgment: the choice is made by portfolio; the split of the amounts of the period is a case assumption.

• Rationale: policy choice of the portfolio, systematic allocation to profit or loss, amount in other comprehensive income

  Text

• Reinsurance contracts held

  JudgmentRequired

  Not applicable

  Measured separately from the underlying contracts, with a loss-recovery component if the underlying group is onerous / Treatment to revisit / Not applicable

  Professional judgment: the reinsurance contract held is measured separately; the recovered share in the case is a pedagogical assumption.

• Rationale: separate reinsurance contract, underlying group, recovery expected

  Text

IFRS 17 §88

• Information to prepare on the liability and the result

  Checklist

  • Reconciliation of the opening and closing balances of the liability
  • Breakdown of the insurance service result
  • Disaggregation of the finance expense between profit or loss and other comprehensive income

• Effect derived from the entries

  Table

• Normative references cited in this workpaper

  References

• Presentation describedPass
• Choice of disaggregation judged and supportedPass
• Reinsurance held judged and supportedPass
• Claims entry balancedPass
• Finance expense entry balancedNot evaluated
• Other comprehensive income entry balancedNot evaluated

Assets

0

Liabilities

95,000

Profit or loss

-95,000

OCI

0

Equity

-95,000

• Group or portfolio presented, period and composition of the liability

  TextRequired

  OPENING_LIABILITY_OF_THE_PORTFOLIO_AND_FINANCE_EXPENSE_OF_20X7

• Accounting policy choice for the finance expense of the portfolio

  Text

  POLICY_CHOICE_OF_THE_PORTFOLIO_TO_DISAGGREGATE_BETWEEN_PROFIT_OR_LOSS_AND_OCI

• Reinsurance contracts held: cover, underlying group, measurement

  Text

• Insurance revenue of the period

  Number

• Claims incurred in the period

  Number

• Other insurance service expenses of the period

  Number

• Opening liability of the group

  Number

  400,000

• Rate of the period for the accretion (case data)

  Number

  5 %

• Part of the financial movement disaggregated into other comprehensive income (case assumption)

  Number

  4,000

• Documents obtained and referenced (statements of the group, accounting policy note, statement of the liability balances)

  EvidenceRequired

IFRS 17 §88

• Points examined: revenue, expenses, finance result, disaggregation and reconciliation

  ChecklistRequired

  • Insurance revenue: provision of services for the consideration expected
  • Insurance service expenses: incurred claims and other insurance expenses
  • Insurance finance result: effect of the time value and of financial risk
  • Choice by portfolio: all in profit or loss or disaggregation between profit or loss and other comprehensive income
  • Opening and closing balances reconciled with the movements

IFRS 17 §88

• Insurance service result (revenue − claims − other expenses)

  Calculation

  0

  Insurance revenue of the period ; − Claims incurred in the period ; − Other insurance service expenses of the period

• Insurance finance expense of the period (opening liability × rate of the period)

  Calculation

  20,000

  Opening liability of the group ; Rate of the period for the accretion (case data)

• Entry of the incurred claims

  Entry

  Debit Insurance service expenses ← Claims incurred in the period ; Credit Insurance contract liability ← Claims incurred in the period

• Entry of the finance expense in profit or loss

  Entry

  Account	Debit	Credit
  Insurance finance expense	20,000
  Insurance contract liability		20,000

• Entry of the part in other comprehensive income

  Entry

  Account	Debit	Credit
  Other comprehensive income: insurance finance expense	4,000
  Insurance contract liability		4,000

IFRS 17 §88

• Choice of disaggregation of the finance expense

  JudgmentRequired

  Disaggregation between profit or loss and other comprehensive income

  Disaggregation between profit or loss and other comprehensive income / All in profit or loss / Not applicable

  Professional judgment: the choice is made by portfolio; the split of the amounts of the period is a case assumption.

• Rationale: policy choice of the portfolio, systematic allocation to profit or loss, amount in other comprehensive income

  Text

  THE_PORTFOLIO_CHOSE_TO_DISAGGREGATE_AND_THE_PART_DUE_TO_THE_RATE_CHANGE_GOES_TO_OCI

• Reinsurance contracts held

  JudgmentRequired

  Not applicable

  Measured separately from the underlying contracts, with a loss-recovery component if the underlying group is onerous / Treatment to revisit / Not applicable

  Professional judgment: the reinsurance contract held is measured separately; the recovered share in the case is a pedagogical assumption.

• Rationale: separate reinsurance contract, underlying group, recovery expected

  Text

IFRS 17 §88

• Information to prepare on the liability and the result

  Checklist

  • Reconciliation of the opening and closing balances of the liability
  • Breakdown of the insurance service result
  • Disaggregation of the finance expense between profit or loss and other comprehensive income

• Effect derived from the entries

  Table

• Normative references cited in this workpaper

  References

• Presentation describedPass
• Choice of disaggregation judged and supportedPass
• Reinsurance held judged and supportedPass
• Claims entry balancedNot evaluated
• Finance expense entry balancedPass
• Other comprehensive income entry balancedPass

Assets

0

Liabilities

24,000

Profit or loss

-20,000

OCI

-4,000

Equity

-24,000

• Group or portfolio presented, period and composition of the liability

  TextRequired

  GROUP_P_LIABILITY_AND_SERVICE_RESULT_OF_THE_QUARTER

• Accounting policy choice for the finance expense of the portfolio

  Text

  POLICY_OF_THE_PORTFOLIO_TO_RECOGNISE_THE_FINANCE_EXPENSE_IN_PROFIT_OR_LOSS

• Reinsurance contracts held: cover, underlying group, measurement

  Text

• Insurance revenue of the period

  Number

  30,000

• Claims incurred in the period

  Number

  11,000

• Other insurance service expenses of the period

  Number

  12,000

• Opening liability of the group

  Number

• Rate of the period for the accretion (case data)

  Number

• Part of the financial movement disaggregated into other comprehensive income (case assumption)

  Number

• Documents obtained and referenced (statements of the group, accounting policy note, statement of the liability balances)

  EvidenceRequired

IFRS 17 §88

• Points examined: revenue, expenses, finance result, disaggregation and reconciliation

  ChecklistRequired

  • Insurance revenue: provision of services for the consideration expected
  • Insurance service expenses: incurred claims and other insurance expenses
  • Insurance finance result: effect of the time value and of financial risk
  • Choice by portfolio: all in profit or loss or disaggregation between profit or loss and other comprehensive income
  • Opening and closing balances reconciled with the movements

IFRS 17 §88

• Insurance service result (revenue − claims − other expenses)

  Calculation

  7,000

  Insurance revenue of the period ; − Claims incurred in the period ; − Other insurance service expenses of the period

• Insurance finance expense of the period (opening liability × rate of the period)

  Calculation

  Opening liability of the group ; Rate of the period for the accretion (case data)

• Entry of the incurred claims

  Entry

  Account	Debit	Credit
  Insurance service expenses	11,000
  Insurance contract liability		11,000

• Entry of the finance expense in profit or loss

  Entry

  Debit Insurance finance expense ← Insurance finance expense of the period (opening liability × rate of the period) ; Credit Insurance contract liability ← Insurance finance expense of the period (opening liability × rate of the period)

• Entry of the part in other comprehensive income

  Entry

  Debit Other comprehensive income: insurance finance expense ← Part of the financial movement disaggregated into other comprehensive income (case assumption) ; Credit Insurance contract liability ← Part of the financial movement disaggregated into other comprehensive income (case assumption)

IFRS 17 §88

• Choice of disaggregation of the finance expense

  JudgmentRequired

  All in profit or loss

  Disaggregation between profit or loss and other comprehensive income / All in profit or loss / Not applicable

  Professional judgment: the choice is made by portfolio; the split of the amounts of the period is a case assumption.

• Rationale: policy choice of the portfolio, systematic allocation to profit or loss, amount in other comprehensive income

  Text

  SHORT_TERM_GROUP_WITH_NO_DISAGGREGATION_INTO_OCI

• Reinsurance contracts held

  JudgmentRequired

  Not applicable

  Measured separately from the underlying contracts, with a loss-recovery component if the underlying group is onerous / Treatment to revisit / Not applicable

  Professional judgment: the reinsurance contract held is measured separately; the recovered share in the case is a pedagogical assumption.

• Rationale: separate reinsurance contract, underlying group, recovery expected

  Text

IFRS 17 §88

• Information to prepare on the liability and the result

  Checklist

  • Reconciliation of the opening and closing balances of the liability
  • Breakdown of the insurance service result
  • Disaggregation of the finance expense between profit or loss and other comprehensive income

• Effect derived from the entries

  Table

• Normative references cited in this workpaper

  References

• Presentation describedPass
• Choice of disaggregation judged and supportedPass
• Reinsurance held judged and supportedPass
• Claims entry balancedPass
• Finance expense entry balancedNot evaluated
• Other comprehensive income entry balancedNot evaluated

Assets

0

Liabilities

11,000

Profit or loss

-11,000

OCI

0

Equity

-11,000

• Group or portfolio presented, period and composition of the liability

  TextRequired

  QUOTA_SHARE_TREATY_OF_40_PERCENT_ON_THE_ONEROUS_GROUP_S

• Accounting policy choice for the finance expense of the portfolio

  Text

• Reinsurance contracts held: cover, underlying group, measurement

  Text

  QUOTA_SHARE_OF_40_PERCENT_ON_THE_GROUP_S_WITH_A_LOSS_OF_10000

• Insurance revenue of the period

  Number

• Claims incurred in the period

  Number

• Other insurance service expenses of the period

  Number

• Opening liability of the group

  Number

• Rate of the period for the accretion (case data)

  Number

• Part of the financial movement disaggregated into other comprehensive income (case assumption)

  Number

• Documents obtained and referenced (statements of the group, accounting policy note, statement of the liability balances)

  EvidenceRequired

IFRS 17 §88

• Points examined: revenue, expenses, finance result, disaggregation and reconciliation

  ChecklistRequired

  • Insurance revenue: provision of services for the consideration expected
  • Insurance service expenses: incurred claims and other insurance expenses
  • Insurance finance result: effect of the time value and of financial risk
  • Choice by portfolio: all in profit or loss or disaggregation between profit or loss and other comprehensive income
  • Opening and closing balances reconciled with the movements

IFRS 17 §88

• Insurance service result (revenue − claims − other expenses)

  Calculation

  0

  Insurance revenue of the period ; − Claims incurred in the period ; − Other insurance service expenses of the period

• Insurance finance expense of the period (opening liability × rate of the period)

  Calculation

  Opening liability of the group ; Rate of the period for the accretion (case data)

• Entry of the incurred claims

  Entry

  Debit Insurance service expenses ← Claims incurred in the period ; Credit Insurance contract liability ← Claims incurred in the period

• Entry of the finance expense in profit or loss

  Entry

  Debit Insurance finance expense ← Insurance finance expense of the period (opening liability × rate of the period) ; Credit Insurance contract liability ← Insurance finance expense of the period (opening liability × rate of the period)

• Entry of the part in other comprehensive income

  Entry

  Debit Other comprehensive income: insurance finance expense ← Part of the financial movement disaggregated into other comprehensive income (case assumption) ; Credit Insurance contract liability ← Part of the financial movement disaggregated into other comprehensive income (case assumption)

IFRS 17 §88

• Choice of disaggregation of the finance expense

  JudgmentRequired

  Not applicable

  Disaggregation between profit or loss and other comprehensive income / All in profit or loss / Not applicable

  Professional judgment: the choice is made by portfolio; the split of the amounts of the period is a case assumption.

• Rationale: policy choice of the portfolio, systematic allocation to profit or loss, amount in other comprehensive income

  Text

• Reinsurance contracts held

  JudgmentRequired

  Measured separately from the underlying contracts, with a loss-recovery component if the underlying group is onerous

  Measured separately from the underlying contracts, with a loss-recovery component if the underlying group is onerous / Treatment to revisit / Not applicable

  Professional judgment: the reinsurance contract held is measured separately; the recovered share in the case is a pedagogical assumption.

• Rationale: separate reinsurance contract, underlying group, recovery expected

  Text

  THE_TREATY_IS_MEASURED_SEPARATELY_AND_COVERS_AN_ONEROUS_UNDERLYING_GROUP_PROPORTIONALLY

IFRS 17 §88

• Information to prepare on the liability and the result

  Checklist

  • Reconciliation of the opening and closing balances of the liability
  • Breakdown of the insurance service result
  • Disaggregation of the finance expense between profit or loss and other comprehensive income

• Effect derived from the entries

  Table

• Normative references cited in this workpaper

  References

• Presentation describedPass
• Choice of disaggregation judged and supportedPass
• Reinsurance held judged and supportedPass
• Claims entry balancedNot evaluated
• Finance expense entry balancedNot evaluated
• Other comprehensive income entry balancedNot evaluated

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0