Sample 8 and Sample 12 - combining portfolios
Just wondering if this material is still relevant to the current syllabus?
I see a mentioning of a reading "IFRS17 Insurance Contracts p.104" in the answer key but this does not seem to be in the current syllabus?
I recall material on classifying contracts into portfolios under "level of aggregation" in the IFRS17 Comparison reading - but this section does not go into the level of detail present in the answer key for these two Sample Qs.
Thanks in advance!
Comments
FYI!
While that paper may no longer be on the syllabus, this is still covered briefly in section 3 of IFRS17- LRC so it's fair game imo
Question 8:
(54)... think you meant 55* in the comments (unless version changed).
line 52 "Group #1 and #2 do not have coverage difference of more than one year => Combine" - I think they meant the TERM are within a year apart, so they are grouping together?
Group 1 and 2 has to use the different measurement models, I guess this doesn't matter when grouping if one is PAA other fails PAA?
Yes you are right, I meant 55.
For line 52, I think that is a possible interpretation, but is still incorrect and you can't group them together without first validating whether they are both PAA eligible, which they have shown in part (a) that group 2 and this answers your last question. You can't group groups that have to use different measurement models together
Okay, you didn't have that in your comment... no group bc one is PAA vs GMM.
Say if you have 2 ONEROUS groups that are both same line, same measure, same length... can you group? I am assuming no.
I did mention that you can't group them together if their measurement method is not the same in row 55 tho - And yes if they are both onerous then sure you can group them together. You can group onerous + onerous and non-onerous + non-onerous, but not onerous and non-onerous