Clearly identified pool of underlying items

« Go to IFRS Jargon

[IFRS 17 Insurance contracts] The pool of underlying items can comprise any items, for example, a reference portfolio of assets, the net assets of the entity, or a specified subset of the net assets of the entity, as long as they are clearly identified by the contract.

An entity need not hold the identified pool of underlying items because the measurement of insurance contracts should not depend on what assets the entity holds. The underlying items do not need to be a portfolio of financial assets. They can comprise items such as the net assets of the entity or a subsidiary within the group that is the reporting entity.

« Go to IFRS Jargon

Leave a Reply

Your email address will not be published. Required fields are marked *