IFRS 17 CAS Sample Question #8 vs #12
Hi
Solution on Q12 indicated " Segment based on measurement model (Para. 18)" is an consideration.
In Q8, #1 is eligible for PAA but #2 is not, is the reason they are grouped together because we want the "fewest" group possible?
And measurement model is not as big as a concern compare to similar risks, management structure?
Thanks!
Comments
For Q12: Measurement model is THE most important consideration for making groupings - period. You cannot a group of contracts measured under GMM and another group of contracts measured under PAA under any circumstances
So in Q8, since we decide to group #1 and #2 together, we would have to use GMA for both. If we decide to use PAA for #1, then they have to be group separately?
For question 8 did they make a typo? The answer said group 2 combines the old group 3 and 5. Group 3 is the old group 4 since its onerous.
But actually Group 5 is onerous and group 4 is non onerous.
They meat to say group the old 3 and old 4 together to be the new group 2 right?