26.9.2023
EN
Official Journal of the European Union
L 237/921
(c) how to identify discretionary cash flows for insurance contracts without direct participation features, applying paragraphs B98–B100; and
(d) whether an investment contract meets the definition of an investment contract with discretionary partici­ pation features within the scope of IFRS 17, applying paragraph 71.
C22
An entity may choose to determine the matters in paragraph C21 using:
(a) reasonable and supportable information for what the entity would have determined given the terms of the contract and the market conditions at the date of inception or initial recognition, as appropriate; or
(b) reasonable and supportable information available at the transition date.
C22A In applying the fair value approach, an entity may choose to classify as a liability for incurred claims a liability for settlement of claims incurred before an insurance contract was acquired in a transfer of insurance contracts that do not form a business or in a business combination within the scope of IFRS 3.
C23
In applying the fair value approach, an entity is not required to apply paragraph 22, and may include in a group contracts issued more than one year apart.
An entity shall only divide groups into those including only contracts issued within a year (or less) if it has reasonable and supportable information to make the division.
Whether or not an entity applies paragraph 22, it is permitted to determine the discount rates at the date of initial recognition of a group specified in paragraphs B72(b)–B72(e)(ii) and the discount rates at the date of the incurred claim specified in paragraph B72(e)(iii) at the transition date instead of at the date of initial recognition or incurred claim.
C24
In applying the fair value approach, if an entity chooses to disaggregate insurance finance income or expenses between profit or loss and other comprehensive income, it is permitted to determine the cumulative amount of insurance finance income or expenses recognised in other comprehensive income at the transition date:
(a) retrospectively —but only if it has reasonable and supportable information to do so; or
(b) as nil—unless (c) applies; and
(c) for insurance contracts with direct participation features to which paragraph B134 applies—as equal to the cumulative amount recognised in other comprehensive income from the underlying items.
Asset for insurance acquisition cash flows C24A In applying the fair value approach for an asset for insurance acquisition cash flows (see paragraph C5B(b)), at the transition date, an entity shall determine an asset for insurance acquisition cash flows at an amount equal to the insurance acquisition cash flows the entity would incur at the transition date for the rights to obtain:
(a) recoveries of insurance acquisition cash flows from premiums of insurance contracts issued before the transition date but not recognised at the transition date;