IFRS 17 TERMINOLOGY

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Across
  1. 1. The best estimate liability is commonly used to refer to the discounted present value of the unbiased, probability-weighted estimate of future cash flows as defined in the standard for the general measurement model applied to a group of insurance contracts
  2. 5. are the type of expense that cannot be allocated to a particular policy or portfolio e.g management expenses
  3. 7. is the unearned profit component of the insurance contract liability presented in the balance sheet and recognized in the income statement as a company provides services under insurance contracts
  4. 8. A simplification of the Generalized Measurement Model permitted if the coverage period of contracts in a group is one year or less
  5. 11. An insurance contract is onerous at the date of initial recognition if the fulfilment cash flows allocated to the contract, any previously recognized acquisition cash flows and any cash flows arising from the contract at the date of initial recognition in total are a net outflow
  6. 13. The income arising in the course of an entity's ordinary activities. Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in an increase in equity, other than those relating to contributions from equity participants
  7. 15. The amount of revenue depicted in profit or loss to reflect the provision of coverage and other services arising from a group of insurance contracts that reflects the consideration to which the entity expects to be entitled in exchange for those services
  8. 17. The portion of the overall profit or loss or other comprehensive income reported in the statement of financial performance that arises from the insurance finance income or expenses (i.e., investment income or financing costs reflecting the time value of money or the effects of financial risk)
  9. 19. Cash flows are within the boundary if they arise from substantive rights and obligations that exist during the period in which the entity can compel the policyholder to pay premiums or the entity has a substantive obligation to provide the policyholder with coverage
  10. 20. The compensation an entity requires for bearing the uncertainty about the amount and timing of the cash flows that arises from non-financial risk as the entity fulfils insurance contracts
  11. 21. The portion of the overall profit or loss or other comprehensive income reported in the statement of financial performance that arises from incurred claims excluding the repayment of investment components under those contracts
  12. 22. represents the CSM for purchasing reinsurance, expected cash inflows from reinsurer plus the risk adjustment exceed expected outflows
  13. 23. Coverage units are used to determine the appropriate recognition of the contractual service margin in profit or loss
  14. 24. a modification to the General Measurement Model for insurance contracts with direct participation features where the contractual service margin is adjusted to reflect the variable nature of the fees under those contracts
  15. 25. the process of separating the non- insurance component from the insurance contract.
Down
  1. 2. The portion of the overall profit or loss or other comprehensive income reported in the statement of financial performance that arises from the insurance revenue reduced by insurance expenses
  2. 3. An entity's obligation to investigate and pay valid claims under existing insurance contracts for insured events that have not yet occurred
  3. 4. An entity's obligation to investigate and pay valid claims for insured events that have already occurred, including events that have occurred but for which claims have not been reported, and other incurred insurance expenses
  4. 6. are the type of expenses that can be allocated to a particular policy or portfolio but is not as a result of acquiring a new business e.g claim handling cost
  5. 9. are the type of expense that arises from acquiring a new business and can also be allocated to a particular policy or portfolio e.g Commissions
  6. 10. The period during which the entity provides coverage for insured events. This period includes the coverage that relates to all premiums within the boundary of the insurance contract
  7. 12. includes all those contracts subject to similar risks and managed together as a single pool
  8. 14. determines the level of granularity at which onerous insurance contracts are identified and how the insurance revenue is recognized in financial statements.
  9. 16. also known as Building Block Approach (BBA), is the general accounting approach for the measurement of insurance contracts under IFRS 17
  10. 18. An explicit, unbiased and probability-weighted estimate (ie. expected value) of the present value of the future cash outflows minus the present value of the future cash inflows that will arise as the entity fulfils insurance contracts, including a risk adjustment for non-financial risk