IFRS 17 categorization of assets
Hello Graham,
Most of the material covered in IFRS 17 leads us to calculate the LIC, LRC and the liability portion of insurance contracts for statement of financial position. However, the text does not (to my knowledge) go into detail about how to calculate the "Insurance Contract Assets".
In current practice, the assets related to insurance contracts are receivables from reinsurers (ceded apv of unpaid and ceded unearned premium), so by that logic, is this account similar to the LRC/LIC calculated accounts but on ceded losses/ceded premium? Having some sort of "Asset Remaining coverage" and "Assets for incurred claims"?
fyi @willm7
Comments
What you stated above seems logical, but if it isn't discussed anywhere in the readings, then you should not have to know it for the the exam. I would hesitate to try to give you a definitive answer because all of this is so new and I only know what's in the syllabus readings. I have never worked with it in a practical setting.
There are also more syllabus changes related to IFRS 17 for the 2021 Fall exam, so that tells me this material is still very much in flux. Hopefully that won't be of any concern to you however!