In case you would like to organize this masterclass within your company feel free to contact us at learning@reacfinacademy.com.
Abstract:
The new IFRS 17 standard is soon to be applied. The material is dense and complex, but maybe you do not need a long and exhaustive training to be effective? If you work for an entity eligible to the PAA, this 4-hour workshop is for you!
In this training, we provide a complete overview of IFRS 17, from the point of view of entities that are eligible to the PAA. The PAA is an optional approach for the measurement of the Liability for Remaining Coverage (LRC) that can be applied if some conditions are fulfilled.
We start from the balance sheet valuation, both for the Liability for Incurred Claims (LIC, using the building block approach) and the Liability for Remaining Coverage (LRC, using the premium allocation approach). We also explain how the calculations deal with reinsurance, and we highlight comparisons between IFRS 17 and Solvency 2.
We then introduce how to perform an analysis of movements between two reporting dates and how to split the profit or loss of the year into causes (experience, change in assumptions, technical variations versus financial variations…). Based on this analysis of change, we build the statement of comprehensive income. We also have a word about the transition.
With a numerical example in Excel, we finally illustrate some options for the treatment of insurance acquisition cash flows and the Other Comprehensive Income (OCI) option.
Who?
We have developed this training for entities eligible to the PAA, but it welcomes everyone who wants to have a complete picture of the global process required in IFRS 17 in a reasonable time.
Content of the workshop:
Webinar 1
Webinar 2
The new IFRS 17 standard is soon to be applied. The material is dense and complex, but maybe you do not need a long and exhaustive training to be effective? If you work for an entity eligible to the PAA, this 4-hour workshop is for you!
In this training, we provide a complete overview of IFRS 17, from the point of view of entities that are eligible to the PAA. The PAA is an optional approach for the measurement of the Liability for Remaining Coverage (LRC) that can be applied if some conditions are fulfilled.
We start from the balance sheet valuation, both for the Liability for Incurred Claims (LIC, using the building block approach) and the Liability for Remaining Coverage (LRC, using the premium allocation approach). We also explain how the calculations deal with reinsurance, and we highlight comparisons between IFRS 17 and Solvency 2.
We then introduce how to perform an analysis of movements between two reporting dates and how to split the profit or loss of the year into causes (experience, change in assumptions, technical variations versus financial variations…). Based on this analysis of change, we build the statement of comprehensive income. We also have a word about the transition.
With a numerical example in Excel, we finally illustrate some options for the treatment of insurance acquisition cash flows and the Other Comprehensive Income (OCI) option.
Who?
We have developed this training for entities eligible to the PAA, but it welcomes everyone who wants to have a complete picture of the global process required in IFRS 17 in a reasonable time.
Content of the workshop:
Webinar 1
- General introduction
- Recognition - What is an insurance contract?
- Measurement – How to measure the value of insurance liabilities?
- Introduction
- The Building Block Approach
Webinar 2
- Measurement
- The Premium Allocation Approach
- Transition
- Reporting
- IFRS Financial statements
- The P&L
- The OCI (option)
- Simplified example
- Disclosure requirements