Hi, Please I'm looking for some clarification on IFRS balance sheet, in particular: 1.) Is the entity's share of the surplus (UK terminology: estate) part of the PAR fund? 2.) If the entity's share of the surplus is NOT part of the PAR fund, where does it sit on the Balance Sheet? 3.) When we speak of Shareholders' Fund (into which shareholders' transfers are made), is this part of the Liabilities or Equity on the balance sheet? 4.) Under IFRS17, should the risk adjustment and CSM be part of the PAR fund, if not, should they just be added on top of the PAR fund to make up the Liability for Remaining Coverage? Sorry, terminology maybe different as I work in the Americas Thank you.
Hi - your question goes beyond the SA2 course content, so you wouldn't have to be concerned about this for the exam. If you are asking from a work perspective, I will leave it for any practitioners to answer. However, just to pick up a couple of more general points: - In the UK at least, a 90:10 with-profits fund is ring-fenced for all purposes, since the ownership of the assets and profits arising in it differs from that of any without-profits fund (100% shareholder-owned) and the 'shareholder fund' itself. - The 'shareholder fund' (under UK terminology) does not contain any policy-related liabilities, although there may be current liabilities (eg tax due).
