Superseded by IFRS 17: Insurance Contracts, para. C34, May 2017, for annual periods beginning on or after 1 January 2023. Earlier application is permitted, see App. C.
BC240 The overlay approach is intended to address the additional accounting mismatches and volatility in profit or loss that may arise if an insurer applies IFRS 9 before applying the forthcoming insurance contracts Standard. To meet that objective:
(a) an insurer may elect to apply the overlay approach only when it first applies IFRS 9; [This includes applying the overlay approach after previously applying either the temporary exemption from IFRS 9 or only the requirements in IFRS 9 for the presentation of gains and losses on financial liabilities designated as at fair value through profit or loss (the ‘own credit’ requirements).] and
(b) a financial asset is eligible for designation if, and only if, it meets both of the following criteria:
(i) it is measured at fair value through profit or loss (FVPL) applying IF
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