Online classroom videos talks about the investment management services component of UL contracts being valued under IAS 18. It then talks about certain UL contracts being valued under IFRS 17. When does IAS 18 apply and when does IFRS 17 apply? I thought IAS 18 had been replaced?
As described in Chapter 16, Section 2.3, contracts need to be categorised as either investment contracts or insurance contracts. Whether UL business is categorised as the former or latter depends on the extent to which there is sufficient insurance risk being taken on by the insurer (as per the definition given in the course notes). As is then described in Sections 2.4 and 2.5, insurance contracts are accounted for under IFRS 17 and investment contracts are accounted for under IFRS 9 and IAS 18 (which has been replaced by IFRS 15 - although as this is not mentioned in the Core Reading, it would not be expected knowledge for the exam).
