early application

allowed.
IFRS 17 -

January 1 2023,

Direct Reinsurance Retrocession

- - -
Insurance contracts

Policy Holder cedant Retrocedant

insurer
IIR
1 .

* IIR
#
↳ IR
.
2 policy holder Insurer Retrocessioner
Reinsurer
,
&

.
3 insured event-depends on the insurance contract

Examples RILD PCT

1 Life Insurance
.
7
Travel Assistance

2 Prepaid Funeral Plan

.
8 Reinsurance contract
.

.
3 Disability and Medical coverage
- non-life insurance =

4. Insurances against theft on damaged property

.
5 credit Insurance

u .
Product Warranties (PFRS 15)
Accounting policies

1 Prohibits provision for possible claims under contracts that are not in existence at

does include
not
the reporting date /such catastrophe and equalization provision) possible liabilities
-

as ,

.
2 It requires a test for the adequacy of recognized insurance liabilities and an im

entire deficiency is recognized in P/L

pairment test for reinsurance assets .

.
3 It requires an insurer to keep insurance liabilities in its balance sheet until they are dis.

charged or cancelled or expired ; and prohibits offsetting : insurance liabilities against

related insurance assets ,

and income
, or expense from reinsurance contract against the

expense or income from the related insurance contract

Changes in Accounting Policy
reliable and no less relevant
more
-
Permitted is such change results to more relevant and no less reliable

METHODS -
in determining unearned premium reserves

X obsolete %
method percentage 40
- -

1 Flat-rate

.
2 Pro-rata temporis method-

.
3 Fractional value Method 24 or 24th method

E u
24th method -

at the middle of the month

March :
2x3 = 0-1
=
/24

Possible different dates and direct a reinsurance

SERVICE CONCESSION AGREEMENTS (IFRIC 12)
Service concession Agreement

>
-

agreement between the govt/public sector

-
binding arrangement

-to operate

↳
existing asset of the grantor/operator

>
grantor regulates/controls operator in of
-

the terms

~ hospital

-services provided "airline

to whom the services will be provided

-
the price of the services granted

>
-
the operator will be compensated by the grantor in a specified period of time

↳
subject to extension

types
:
build operate -
transfer

rehabilitate -

operate-transfer
 I I
PARTIES STANDARD TYPES
Asset
~
Grantor IDSAS 32 1 . Financial Liability Method Financial Liability

-Asset
.
2 Grant of Right to the Operator Model) \unearned
Revenue

Operator I FRIC 12 1 . Financial Asset Model

.
2 Intangible Asset Method
 Financial Asset Model (PFRs 9/PFRS 15) AC , FVOCI FUPL
-

1 ,

(cash received ↳ revenues is

* if performance obligation
satisfied.
"
"the grantor is required to pay the operator

>
-

received cash as a deduction of the recorded fin. asset (receivable)

- borrowing cost (expensed)

.
2 Intangible Asset Method -P
amortized

↓ right/license to charge users of the public service

.
2 accounted using PAS 28 or fair value (IFRIC 12-FX gyud , regardless if FAM/1AM)
↳
in year I , cost cannot be determined
.
3 Service Revenue will be accounted using PFRS 15 Yet .

⑪ toll charges

.
4
Borrowing cost will be capitalized
PROBLEM 1

consideration year 1 ( 510 %)

① Amount due for 105% = 525
.
x

contractual Asset-year # 525

year 2 16 .
18 % x 525) 32

Amount due for con .

(510 x 105 %) 525

Receivable -
year 2 1 , 082 .
C

Effective IR (6 18 %
.
x 1 ,082) 07

%) 12
② Due for Operation y3 (10 x 120
-

Amount

casn Receipt (200)

-

Receivable -
year 3 ac

.
3 po s X service
 120 % 1 , 084/8 135 5
= = =
.
3 Total Revenue 10 x .
4 Amortin .

=
12

PROBLEM 2

)
x 105 %
1 construction services Y1 (500 525

525

Borrowing COST -4

1 , 084

.
2 Total Revenue-Year 2 (500 x 105% 525

.
3 Total Revenue-year a 200

OPERATION SERVICES
S25