Document ID: chunk:federal_register_of_legislation:F2023C00382:front:0:p87
Version: federal_register_of_legislation:F2023C00382
Segment Type: other
Provision Reference: 
Character Range: 229024–231924

incurred claim.
(b) if an entity chooses to disaggregate insurance finance income or expenses between amounts included in profit or loss and amounts included in other comprehensive income applying paragraphs 88(b) or 89(b), the entity needs to determine the cumulative amount of insurance finance income or expenses recognised in other comprehensive income at the transition date to apply paragraph 91(a) in future periods. The entity is permitted to determine that cumulative amount either by applying paragraph C19(b) or:
(i) as nil, unless (ii) applies; and
(ii) for insurance contracts with direct participation features to which paragraph B134 applies, as equal to the cumulative amount recognised in other comprehensive income on the underlying items.
C19 For groups of insurance contracts that do not include contracts issued more than one year apart:
(a) if an entity applies paragraph C13 to estimate the discount rates that applied at initial recognition (or subsequently), it shall also determine the discount rates specified in paragraphs B72(b)–B72(e) applying paragraph C13; and
(b) if an entity chooses to disaggregate insurance finance income or expenses between amounts included in profit or loss and amounts included in other comprehensive income, applying paragraphs 88(b) or 89(b), the entity needs to determine the cumulative amount of insurance finance income or expenses recognised in other comprehensive income at the transition date to apply paragraph 91(a) in future periods. The entity shall determine that cumulative amount:
(i) for insurance contracts for which an entity will apply the methods of systematic allocation set out in paragraph B131 – if the entity applies paragraph C13 to estimate the discount rates at initial recognition – using the discount rates that applied at the date of initial recognition, also applying paragraph C13;
(ii) for insurance contracts for which an entity will apply the methods of systematic allocation set out in paragraph B132 – on the basis that the assumptions that relate to financial risk that applied at the date of initial recognition are those that apply on the transition date, ie as nil;
(iii) for insurance contracts for which an entity will apply the methods of systematic allocation set out in paragraph B133 – if the entity applies paragraph C13 to estimate the discount rates at initial recognition (or subsequently) – using the discount rates that applied at the date of the incurred claim, also applying paragraph C13; and
(iv) for insurance contracts with direct participation features to which paragraph B134 applies – as equal to the cumulative amount recognised in other comprehensive income on the underlying items.
C19A Applying paragraph B137, an entity may choose not to change the treatment of accounting estimates made in previous interim financial statements. To the extent permitted by paragraph C8, such