Net expense (income) reinsurance contract held
Hi !
I have a question regarding the Battle quiz question "Identification of the category of the financial statement item" regarding the item ".
For the item "Net finance income (expense) from reinsurance contract held, why do we say that it is in the category "NIR (Net income result)" ? I do not see this item in the NIR...
Comments
I am looking into this and will get back to you
Line 320 = Expand the Excel cell
Ah ok thank you !
Hi, I have a follow-up question on this one:
In https://pwc.com/id/en/publications/assurance/ifrs-17-insurance-contracts.pdf
ISR = TIR - ISE - NRE
However, the battle page is
ISR = TIR - ISE + NRE
I personally think NRE is an expense and should be subtracted from ISR, but would like to confirm this. Thank you!
Nope the formula is correct. See question 10 of the published ifrs17 sample questions and the following discussion https://battleactsmain.ca/vanillaforum/discussion/comment/4703#Comment_4703
It is important to not get hooked up on the signs and think logically about what is happening on the income statement. I personally prefer it to just be ISR = TIR - ISE + NRE and then letting the signs vary in the income statement like what Intact does but that is not what is being published