Document ID: chunk:federal_register_of_legislation:F2023C00382:front:0:p14
Version: federal_register_of_legislation:F2023C00382
Segment Type: other
Provision Reference: 
Character Range: 34729–37563

the loss component of the liability for remaining coverage applying paragraph 50(b).
(d) the effect of any currency exchange differences on the contractual service margin; and
(e) the amount recognised as insurance revenue because of the transfer of insurance contract services in the period, determined by the allocation of the contractual service margin remaining at the end of the reporting period (before any allocation) over the current and remaining coverage period applying paragraph B119.
45 For insurance contracts with direct participation features (see paragraphs B101–B118), the carrying amount of the contractual service margin of a group of contracts at the end of the reporting period equals the carrying amount at the start of the reporting period adjusted for the amounts specified in subparagraphs (a)–(e) below. An entity is not required to identify these adjustments separately. Instead, a combined amount may be determined for some, or all, of the adjustments. The adjustments are:
(a) the effect of any new contracts added to the group (see paragraph 28);
(b) the change in the amount of the entity's share of the fair value of the underlying items (see paragraph B104(b)(i)), except to the extent that:
(i) paragraph B115 (on risk mitigation) applies;
(ii) the decrease in the amount of the entity's share of the fair value of the underlying items exceeds the carrying amount of the contractual service margin, giving rise to a loss (see paragraph 48); or
(iii) the increase in the amount of the entity's share of the fair value of the underlying items reverses the amount in (ii).
(c) the changes in fulfilment cash flows relating to future service, as specified in paragraphs B101–B118, except to the extent that:
(i) paragraph B115 (on risk mitigation) applies;
(ii) such increases in the fulfilment cash flows exceed the carrying amount of the contractual service margin, giving rise to a loss (see paragraph 48); or
(iii) such decreases in the fulfilment cash flows are allocated to the loss component of the liability for remaining coverage applying paragraph 50(b).
(d) the effect of any currency exchange differences arising on the contractual service margin; and
(e) the amount recognised as insurance revenue because of the transfer of insurance contract services in the period, determined by the allocation of the contractual service margin remaining at the end of the reporting period (before any allocation) over the current and remaining coverage period applying paragraph B119.
46 Some changes in the contractual service margin offset changes in the fulfilment cash flows for the liability for remaining coverage, resulting in no change in the total carrying amount of the liability for remaining coverage. To the extent that changes in the contractual service margin do not offset changes in the