Question 1

What is the main objective of IFRS 17?

Accepted Answer

To provide a comprehensive, comparable, and transparent accounting framework for insurance contracts

Answer

To standardize the taxation of insurance companies.

Answer

To increase insurance premiums globally.

Answer

To eliminate the need for actuarial modeling.

Question 2

Under IFRS 17, when should an insurance contract be recognized in the financial statements?

Accepted Answer

When the insurer becomes a party to the contract, usually at coverage start or first premium due.

Answer

When the policyholder pays the first premium.

Answer

When the contract expires.

Answer

When claims are paid.

Question 3

What is the purpose of the Contractual Service Margin (CSM) in IFRS 17?

Accepted Answer

To represent unearned profit, recognized over the coverage period.

Answer

To record acquisition costs.

Answer

To determine tax liabilities.

Answer

To calculate investment income.

Question 4

Which measurement model is used for most insurance contracts under IFRS 17?

Accepted Answer

General Measurement Model (GMM)

Answer

Premium Allocation Approach (PAA)

Answer

Fair Value Model

Answer

Variable Fee Approach (VFA)

Question 5

Statement 1: IFRS 17 requires insurance contract assets and liabilities to be reported at the portfolio level.

Statement 2: Under IFRS 17, insurance revenue is recognized when premiums are received, not as services are provided.

Accepted Answer

Statement 1 is TRUE.

Statement 2 is FALSE.

Answer

Statement 1 is TRUE.

Statement 2 is TRUE.

Answer

Statement 1 is FALSE.

Statement 2 is TRUE.

Answer

None of the above.

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