EIOPA · 2793
Reporting Templates
- Regulation
- (EU) 2023/894 - ITS with regard to the templates for the submission of information necessary for supervision
- Article
- Annex II
- Topic
- Reporting Templates
- Submitted
- 2023-09-18
- Answered
- 2023-12-21
Question
Acquisition expenses should include the movements in deferred acquisition costs. IFRS17 does not recognize Deferred acquisition costs. Should S05.01 Acquisition expenses thus be reported on paid acquisition costs without movement in Deferred acquisition costs?
Background
IFRS17 introduced difficulty in reporting S05.01. Not all S05.01 are recognizable in IFRS17
Answer
In IFRS 17, deferred acquisition costs are not presented as an asset but included in insurance contract fulfilment cash flows and are therefore part of insurance liabilities. However, according to IFRS17.B125 insurers should allocate the portion of the premiums that relate to recovering acquisition expenses to each reporting year and recognise the same amount as insurance service expenses. Therefore, it should still be possible to report movements in deferred acquisition expenses.
This Q&A is published by European Insurance and Occupational Pensions Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
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