IASB makes decisions on level of aggregation and the effect of discretion for participating contracts.
During its January meeting, the IASB continued its discussions on the new insurance contracts standard (IFRS 4 Phase II). It also discussed the level of aggregation to be used for determining the CSM at inception and allocating it over time into profit or loss. Clarification was provided on how to distinguish between the effect of market movements and the application of discretion under the general model for participating contracts.
