Mastering IFRS 17: Comprehensive Guide to Insurance Contract

Understand IFRS 17 in Depth: GMM, PAA, VFA, Reinsurance, CSM, and Practical Illustrations

What you'll learn
- Understand the core objective and scope of IFRS 17.
- Identify what constitutes an insurance contract and distinguish it from financial contracts.
- Understand separation of non-insurance components from insurance contracts.
- Learn how to aggregate insurance contracts into portfolios and groups.
- Apply the General Measurement Model (GMM) to measure insurance contracts.
- Analyze the concept of Contractual Service Margin (CSM), fulfilment cash flows, and risk adjustment.
- Use the Premium Allocation Approach (PAA) for short-duration contracts.
- Account for reinsurance contracts held and recognize gains/losses appropriately.
- Implement the Variable Fee Approach (VFA) for contracts with direct participation features.
- Explore practical illustrations and journal entries for each model.

Requirements
- Basic understanding of accounting and financial reporting concepts.
- Familiarity with IFRS principles is helpful but not mandatory.
- No actuarial background required — concepts are explained from an accountant’s perspective.

Description
IFRS 17: Insurance Contracts is one of the most transformative and complex standards introduced by the IASB, redefining how insurance contracts are recognized, measured, and disclosed. In this comprehensive course, you will master the entire framework ofIFRS 17: Insurance Contractsthrough clear explanations, real-world examples, and step-by-step illustrations.

We begin by laying a strong foundation—explaining what qualifies as an insurance contract and how to identify insurance risk. From there, we move into thecore measurement models:

1) TheGeneral Measurement Model (GMM), the standard approach applicable to most contracts.

2) ThePremium Allocation Approach (PAA), a simplified model ideal for short-term contracts.

3) TheVariable Fee Approach (VFA), applicable to contracts with direct participation features.

You’ll also learn aboutContractual Service Margin (CSM),fulfilment cash flows,discounting, andrisk adjustments, ensuring you grasp the technical intricacies.

The course also coversReinsurance contracts held, separation of non-insurance components, level of aggregation, and annual cohorts. Each topic is supported by journal entries, real-life examples, and practical illustrations—making complex concepts easy to digest.

Whether you're an accounting student, a financial reporting professional in the insurance industry, or an auditor, this course gives you the tools and clarity to navigate IFRS 17 with confidence.

Who this course is for:
- ACCA, CA, and CPA students preparing for professional financial reporting exams.
- Insurance company accountants, finance professionals, and auditors.
- Professionals involved in financial reporting, actuarial services, and regulatory compliance.
- Anyone interested in gaining a deep understanding of IFRS 17 and insurance contract accounting.
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