The general measurement model

10 min · IFRS 17
01 · Concept

Measure insurance contract liabilities as the sum of fulfilment cash flows (PV future cash flows + risk adjustment) plus a contractual service margin (CSM) representing unearned profit.

  • 01Three models: GMM, PAA (simplified), VFA (with-profits).
  • 02CSM released to P&L as services provided.
  • 03Onerous contracts: loss to P&L immediately.