CIA.IFRS17-PAA

Question 1

describe the carrying amount for LRC using PAA (calculated at initial recognition)

Answer 1

• premium received (at initial recognition)
• minus acquisition cash flow at that date (unless already expensed)
• plus any assets for acquisition cash flows derecognized minus liabilities previously recognized

Question 2

identify differences between GMA and PAA for calculating LRC

Answer 2

• PAA is simpler
• PAA doesn’t require estimation of FCF
• PAA doesn’t require a CSM