Boards decide that distinct investment components should be unbundled from insurance contracts and measured under the applicable financial instruments standards.
- IASB confirms that a risk adjustment and residual margin should be used in measurement.
- IASB introduces a fair value through other comprehensive income classification for the measurement of eligible debt instruments.
- Boards decide to require the use of other comprehensive income for recording changes in insurance liabilities (excluding liabilities that are contractually-linked to underlying assets) arising from changes in discount rates.
- Boards further discuss the presentation and measurement of acquisition costs. The IASB confirms acquisition costs should be included in the determination of the insurance liability rather than recognised as a separate asset.