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Day 3 (Opening) - IFRS 17 Training

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Key differences between reinsurance held and insurance under IFRS 17:

___ shall include allowance for the risk of non-performance (incl. effects of collateral and losses from disputes).

a)

Estimated cash flows

b)

Risk adjustment

c)

Onerous contract requirements

2.

Investment Component for Reinsurance Contracts: Amount that a contract requires ___ to repay to ___ even if an insured event does not occur.

a)

Entity, cedant

b)

Cedant, entity

3.

___ has the same component under GMM and PAA method

a)

LFRC

b)

LFIC

4.

The PAA method is likely to be the preferred method for ___.

a)

General and Health Insurance Contracts

b)

Life and Health Insurance Contracts

5.

Profit sharing is included in the ___ component of the PAA calculation.

a)

Premium received

b)

Insurance revenue

c)

Investment

6.

The PAA uses premiums ____ as opposed to premiums ___.

a)

Received, written

b)

Written, received

7.

___ need to be measured under VFA.

a)

Insurance contract with DPF

b)

Health insurance contract

c)

Life insurance contract

8.

Under VFA measurement changes financial risk will be ___.

a)

Recognised in P&L or OCI immediately

b)

Released overtime

9.

Under fee income approach, what cash flow should be considered?

a)

Total cash flow

b)

Entity's share

c)

Policyholder's share

10.

IFRS 17 requires separation of the non-insurance components from the insurance contract if the component is ___ and account for then under relevant IFRS standards.

a)

Distinct

b)

Non-distinct