2018年-普华永道全球_Transition_Resource_Group_debates_IFRS_17_implementation_issues_PwC_12页_370kb

IFRS 17 Implementation Summary - TRG Meeting (26-27 September 2018)

Core Content

The document provides a summary of the discussions held by the Transition Resource Group (TRG) for IFRS 17 during its third meeting on 26 and 27 September 2018. The TRG, established by the IASB, serves as a public forum for stakeholders to provide input on implementation issues of the new IFRS 17 standard, which replaces IFRS 4 for insurance contracts. The meeting addressed 32 submissions, with ten detailed agenda items, and the IASB is expected to take further actions, such as issuing guidance or referring issues to the Board or Interpretations Committee.

Main Viewpoints and Key Issues

1. Insurance Risk Consequent to an Incurred Claim

• The TRG debated whether insurance risk arises from the period of coverage or the period of payment following an incurred claim.
• The IASB staff concluded that the entity's election to treat such risk as either a liability for incurred claims or remaining coverage is an accounting policy choice under IAS 8.
• Entities should apply consistent accounting policies for similar contracts, but may vary by product type or geography.

2. Determining Discount Rates Using a Top-Down Approach

• The top-down approach allows entities to use a reference portfolio of assets without adjusting for liquidity differences.
• The IASB expects the referenced asset portfolio to have liquidity characteristics consistent with the insurance liabilities.
• Disclosures are important to help users understand the impact of this approach.

3. Commissions and Reinstatement Premiums in Reinsurance Contracts

• Payments between reinsurer and cedant not based on claim amounts are treated as adjustments to insurance service revenue.
• Payments based on claims are adjustments to insurance service expense.
• Mandatory reinstatement premiums are recognized as insurance service revenue, while voluntary ones may be treated as adjustments to claims.

4. Premium Experience Adjustments

• Premium experience adjustments related to current or past service should be recognized in profit or loss immediately.
• The TRG noted that the interaction between these adjustments and the contractual service margin (CSM) recognition could affect the pattern of CSM.
• It was emphasized that this is a matter of judgment and not explicitly outlined in IFRS 17.

5. Cash Flows Outside the Contract Boundary

• Cash flows outside the original contract boundary at initial recognition should be accounted for based on the reassessment of the contract boundary.
• Example 1 involved a contract with an annual repricing mechanism, where the boundary was reassessed if the re-pricing had commercial substance.
• Example 3 involved a proportional reinsurance contract with unilateral termination rights, where the boundary was reassessed only if related to the original contract boundary.

6. Recovery of Insurance Acquisition Cash Flows

• Entities are not required to separately identify recoverability of acquisition cash flows at each reporting date.
• Insurance revenue must not exceed the consideration expected to be received for services provided.
• Commissions contingent on contract continuation but not requiring additional services are considered acquisition cash flows if they meet the definition.

7. Premium Waivers

• Premium waivers due to uncertain future events (e.g., disability) are considered insurance risk, as the risk existed prior to the contract.
• These waivers may result in the entire contract being classified as an insurance contract if the risk is significant.
• Premium waivers should not be presented in insurance service revenue, as they are not consideration received.

8. Group Insurance Policies

• The TRG discussed how to identify the policyholder and the insurance contract in group insurance schemes.
• The policyholder is determined by who benefits from the compensation, not by the method of payment.
• The contract may be a single or multiple contract depending on the substance of the arrangement, not just the legal form.
• The contract boundary is determined based on the facts and circumstances, not on the expectation of extension beyond termination.

9. Industry Pools Managed by an Association

• The TRG discussed the accounting for insurance contracts within industry pools, where risk is shared.
• The identification of the issuer of the insurance contract is context-dependent.
• The risk adjustment for pool members may be affected by how the pool is structured and managed.

10. Reporting on Other Questions

• One submission was reported back to the IASB, while others were considered through other processes.
• The TRG emphasized the importance of disclosure in cases where the top-down approach is used.

Key Observations

• The TRG emphasized that some issues are matters of judgment and not explicitly covered by IFRS 17.
• The IASB is expected to provide educational sessions and guidance to support implementation.
• The TRG members highlighted the need for clarity in areas such as experience adjustments and the separation of investment and insurance components.
• The staff reiterated that the top-down approach should be used with an asset portfolio that reflects the liquidity of the insurance liabilities.

PwC Observations

• The TRG acknowledged that the IASB intends for the top-down approach to be applied with an asset portfolio consistent with the liabilities.
• There was some debate over whether premium waivers are truly an accounting policy choice or based on management's judgment.
• The TRG noted that the staff's analysis of insurance risk and revenue recognition is helpful, but some members felt it could be more clearly communicated.
• The staff paper was praised for its numerical examples, which aid in understanding the application of acquisition cash flows in different scenarios.
• The TRG observed that group insurance schemes and industry pools can have significant variation, leading to different accounting outcomes based on the fact pattern.

Summary of Next Steps

• The IASB plans an educational session on IFRS 17 at its October meeting.
• Submissions for the December TRG meeting are requested by 26 October 2018.
• The IASB will decide in October whether to postpone the December meeting to the first quarter of 2019.
• The TRG will not issue guidance, but will provide input to the IASB on implementation issues.