IFRS 17, FPSL and SAP for PAA insurance contracts

In this article i represent the new financial reporting standard IFRS 17 which is the most significant change to insurance accounting requirements in over 20 years. It is scheduled to be applied for reporting periods on after 1 January 2021. The Standard use three measurement approaches, we will focus only in the second one which is Premium allocation approach. In this approach insurance contracts are at inseption onerous and the coverage period is less than a year. You can find the complete process of this method, with the use of Sap.