Approaches

evelynleoevelynleo
in CIA.IFRS17-IC

I noticed that there are several approaches:
1. Full Retrospective Approach, Modified Retrospective Approach, Fair Value Approach
2. PAA, GMM, VFA

Can you explain the different between these 2 group of approaches?

Comments

  • Staff-T1Staff-T1
    1. You're describing IFRS transition approaches when moving from IFRS 4 to IFRS 17. I had some explanation here : https://www.battleactsmain.ca/vanillaforum/discussion/906/transition-to-ifrs17#latest
    2. I wouldn't bother about VFA. That is more for life insurance. At a high-level, PAA and GMM are methods that are used to measure insurance contract liabilities. PAA is a simplification of GMM. I'd recommend reading the LRC wiki and it will be clearer since while this is the first paper, it does assume you have some very basic knowledge of IFRS17 which is covered in other papers :)
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