Assumptions

BC211 The first disclosure principle in the IFRS requires disclosure of amounts in an insurer’s balance sheet [IAS 1 Presentation of Financial Statements (as revised in 2007) replaced the term ‘balance sheet’ with ‘statement of financial position’.] and income statement [IAS 1 (revised 2007) requires an entity to present all income and expense items in one statement of comprehensive income or in two statements (a separate income statement and a statement of comprehensive income).] that arise from insurance contracts (paragraph 36 of the IFRS). In support of this principle, paragraph 37(c) and (d) requires disclosure about assumptions and changes in assumptions. The disclosure of assumptions both assists users in testing reported information for sensitivity to changes in those assumptions and enhances their confidence in the transparency and comparability of the information.