View source for Internal:Training/IFRS17

🎯 '''Introduction.''' This training programme takes you from first principles to a complete understanding of IFRS 17, the international accounting standard for insurance contracts. Each page builds on the last, starting from the most basic notions and adding complexity one step at a time. No prior knowledge of insurance or accounting is assumed. By the end, you will be able to read, interpret, and work with IFRS 17 financial statements with confidence.

=== [[Internal:Training/IFRS17/Why insurance exists|Why insurance exists]] ===
* Uncertainty and risk
* Pooling as a solution
* The role of the insurer

=== [[Internal:Training/IFRS17/The economics of an insurance contract|The economics of an insurance contract]] ===
* Anatomy of a premium
* The timing mismatch and the time value of money
* Where profit comes from

=== [[Internal:Training/IFRS17/What is accounting and why it matters|What is accounting and why it matters]] ===
* The purpose of accounting: who needs it and why
* The balance sheet and the income statement
* Key principles: recognition, measurement, and matching

=== [[Internal:Training/IFRS17/Accounting for an insurer|Accounting for an insurer]] ===
* The insurer's balance sheet: reserves as the dominant liability
* The insurer's income statement: premiums, claims, and expenses
* The hard questions: when is revenue earned, how do you value an uncertain promise?

=== [[Internal:Training/IFRS17/Why insurance broke global standards|Why insurance broke global standards]] ===
* Different countries, different answers
* IFRS and the promise of one global language
* IFRS 4 as a temporary compromise and why IFRS 17 was needed

=== [[Internal:Training/IFRS17/The building blocks: overview|The building blocks: overview]] ===
* The idea of decomposing a liability into transparent pieces
* The four components at a glance: FCF, discounting, RA, CSM
* How the building blocks solve the problems of the old world

=== [[Internal:Training/IFRS17/Fulfilment cash flows|Fulfilment cash flows]] ===
* Which cash flows to include
* The contract boundary
* Probability-weighted estimates and keeping assumptions current

=== [[Internal:Training/IFRS17/Discounting|Discounting]] ===
* Why discounting is essential for insurance liabilities
* Choosing the discount rate: top-down vs. bottom-up
* How discounting affects the liability over time

=== [[Internal:Training/IFRS17/The risk adjustment|The risk adjustment]] ===
* What the risk adjustment represents
* How to measure it: confidence levels, cost of capital, VaR
* How the risk adjustment releases as risk expires

=== [[Internal:Training/IFRS17/The contractual service margin|The contractual service margin]] ===
* What the CSM represents: unearned profit locked away on day one
* How the CSM absorbs changes in estimates
* How the CSM releases into revenue: coverage units

=== [[Internal:Training/IFRS17/Grouping contracts|Grouping contracts]] ===
* Portfolios: contracts with similar risks
* Profitability groups: separating profitable from onerous
* Annual cohorts: why contracts issued more than a year apart must be separated

=== [[Internal:Training/IFRS17/The general model: initial recognition|The general model: initial recognition]] ===
* Day one: measuring the four building blocks
* Profitable contracts: CSM is positive
* Onerous contracts: CSM is zero, loss recognized immediately

=== [[Internal:Training/IFRS17/The general model: subsequent measurement|The general model: subsequent measurement]] ===
* Passage of time: unwinding discount, releasing RA, releasing CSM
* Changes in estimates: future service adjusts CSM, current/past service hits P&L
* Claims incurred, settled, and derecognition

=== [[Internal:Training/IFRS17/The income statement under IFRS 17|The income statement under IFRS 17]] ===
* Insurance revenue: not premiums, but service delivered
* Insurance service expenses and the insurance service result
* Insurance finance income/expense and the OCI option

=== [[Internal:Training/IFRS17/The premium allocation approach|The premium allocation approach]] ===
* When PAA is available: the eligibility test
* How PAA works: simplified measurement
* What you keep and what you skip vs. the general model

=== [[Internal:Training/IFRS17/The variable fee approach|The variable fee approach]] ===
* What are direct participating contracts
* The variable fee concept: how VFA modifies the general model
* Scope and the three eligibility criteria

=== [[Internal:Training/IFRS17/Reinsurance held|Reinsurance held]] ===
* Reinsurance as the mirror image: the insurer is the customer
* Key asymmetries: day-one gains and loss recovery
* Proportionate vs. non-proportionate reinsurance

=== [[Internal:Training/IFRS17/Contract modifications and portfolio transfers|Contract modifications and portfolio transfers]] ===
* When contract terms change: derecognize or continue?
* The criteria and consequences of modification
* Portfolio transfers: measuring at the transaction date

=== [[Internal:Training/IFRS17/Transition to IFRS 17|Transition to IFRS 17]] ===
* The full retrospective approach: the gold standard
* The modified retrospective approach: practical approximation
* The fair value approach: when history is unavailable

=== [[Internal:Training/IFRS17/Presentation, disclosure, and interpretation|Presentation, disclosure, and interpretation]] ===
* How IFRS 17 numbers appear in published financial statements
* Key disclosure requirements
* Reading IFRS 17 reports as an analyst or stakeholder