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WHAT IS THE OBJECTIVE AND SCOPE OF IFRS 17

WHAT IS THE OBJECTIVE AND SCOPE OF IFRS 17

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Objective
IFRS 17 Insurance Contracts establishes the principles for the recognition, measurement, presentation and disclosure of Insurance contracts within the scope of the Standard. The objective of IFRS 17 is to ensure that an entity provides relevant information that faithfully represents those contracts. This information gives a basis for users of financial statements to assess the effect that insurance contracts have on the entity's financial position, financial performance and cash flows.

Scope
An entity shall apply IFRS 17 Insurance Contracts to:

  • Insurance contracts, including reinsurance contracts, it issues;
  • Reinsurance contracts it holds; and
  • Investment contracts with discretionary participation features it issues, provided the entity also issues insurance contracts.
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