IFRS INTERPRETATION

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Standard	IFRS 1: First-time Adoption of International Financial Reporting Standards IFRS 2 Share-based Payment IFRS 3 Business Combinations IFRS 4 Insurance Contracts IFRS 5 Non-cash Assets Held for Sale and Discontinued Operations IFRS 6 Exploration for and Evaluation of Mineral Resources IFRS 7 Financial Instruments: Disclosures IFRS 8 Operating Segments IFRS 9 Financial Instruments IFRS 10 Consolidated Financial Statements IFRS 11 Joint Arrangements IFRS 12 Disclosure of Interests in Other Entities IFRS 13 Fair Value Measurement IFRS 14 Regulatory Deferral Accounts IFRS 15 Revenue from Contracts with Customers IFRS 16 Leases IFRS 17 Insurance Contracts IAS 1 Presentation of Financial Statements IAS 2 Inventories IAS 7 Statement of Cash Flows IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors IAS 10 Events after the Reporting Period IAS 12 Income Taxes IAS 16 Property, Plant and Equipment IAS 19 Employee Benefits IAS 20 Accounting for Government Grants and Disclosure of Government Assistance IAS 21 The Effects of Changes in Foreign Exchange Rates IAS 23 Borrowing Costs IAS 24 Related Party Disclosures IAS 26 Accounting and Reporting by Retirement Benefit Plans IAS 27 Separate Financial Statements IAS 28 Investments in Associates and Joint Ventures IAS 29 Financial Reporting in Hyperinflationary Economies IAS 32 Financial Instruments: Presentation IAS 33 Earnings per Share IAS 34 Interim Financial Reporting IAS 36 Impairment of Assets IAS 37 Provisions, Contingent Liabilities and Contingent Assets IAS 38 Intangible Assets IAS 39 Financial Instruments: Recognition and Measurement IAS 40 Investment Property IAS 41 Agriculture
Definition	♥A contract where a party (issuer) accepts significant insurance risk from another( policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (insured event) adversely affects the policyholder.
Objective	♥Its main aim is to ensure an entity provides relevant information that faithfully represents Contracts(Insurance,Reinsurance,Investment & transfer) and their effects.
Scope	♥ Applies to Insurance Contracts & their transfers ♥ Applies to Reinsurance Contracts ♥ Applies to Investment Contracts with discretionary participation features.
Recognition	♥ Recognise as An Insurance Asset the group of insurance contracts it issues from the earliest of (a) Start of Coverage Period (b)Date of 1st Payment (c) when the group becomes onerous for Onerous Contracts(Obligation Costs exceed Benefits). ♥ Allocate Insurance acquisition Cashflows to group using a Systematic & rational method unless they are expensed ♥ Recognise as Impairment Loss/Increase in profit Or Loss when a change in circumstances of recoverability of Acquisition cashflows becomes apparant
Measurement	♥ On initial recognition,measure the group as total of fulfilment cash flows ie ((i)present value of future cash outflows minus the pv of the future cash inflows, (ii)Time value of money Adjustment, (iii)risk adjustment for non-financial risk(compensation for Bearing uncertainity of cashflows) &(iv)contractual service margin( carrying amount of asset/liability representing unearned profit the entity recognises as it provides insurance services)) ♥ An entity may Estimate future cash flows using Expected values(probability Weighted Mean) then allocate resulting fulfilment cash flows to Contract groups & later adjust them using Discount Rates. ♥ On subsequent measurement, Carrying amount of Group Contracts shall be sum of ((a)Liability for remaining Coverage[fullfillment cashflows & Contractual Service margins at that date],(b) Liability for Incurred Claims[fullfimmnet cashflows to past service]) ♥ An Entity may measure Group Contracts using Premium Allocation([ Liability Carrying Amount=Premiums received-Insurance Acquisition Cashflows± Asset derecognition Amounts]) only if it would produce a result similar to other methods & coverage period for each group contract is 1 year or less. ♥ An Entity may still subsequently measure Group Contracts using Premium Allocation([ Liability Carrying Amount=Premiums received-Insurance Acquisition Cashflows+ Acquisition Cashflows Amortisation+Financial Component Adjustment- Insurance Revenue Amount])
Presentation	♥Present separately in statement of financial position the carrying amount of:(a) Insurance Contract Assets & Liabilities(b) Reinsurance Contract Assets & Liabilities ♥Show Insurance service result & Insurance finance income or expenses in Profit or loss and other comprehensive Income seperately for both Insurance & Reinsurance Contracts ♥Insurance Service Result=Revenue an entity is entitled as consideration for provision of services but excludes Investment Components ♥Insurance finance income or expenses=effect of( Financial Risk,Time Value of money and their changes) but excludes contracts with direct participation features
Disclosure	♥Contract Amounts & their Reconciliation in the Notes ♥Significant Judgements & Changes when applying it ♥Nature & extent of Risks of Contracts ♥Aggregation Biases like Contract Types & Geographical areas ♥inputs, assumptions and estimation techniques used.
(Any Other Issue)	♥On Modification by agreement between parties to the contract or change in regulation, an entity shall derecognise the original contract and recognise the modified contract as a new contract. ♥An Entity shall derecognise an Insurance Contract when Its extinguished,significantly modified or it gets reinsurance ♥Disclose Sensitivity Analysis of how the Insurance Risk has affected the profit or Loss of the Contract ♥Should Disclose information on Credit & liquidity Risk and how it mitigates them.
Conclusion/Decision:

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