(paragraphs 78-92 and B120-B136 of IFRS 17)

BC328 IFRS 17 requires an entity to present the combination of rights and obligations arising from a group of insurance contracts as a single insurance contract asset or liability in the statement of financial position. This requirement is consistent with the measurement of a group of insurance contracts as a package of cash inflows and cash outflows. Consistent with the requirement in IAS 1 that an entity not offset assets and liabilities, IFRS 17 prohibits entities from offsetting groups of insurance contracts in an asset position with groups of insurance contracts in a liability position. [In June 2020, the Board amended IFRS 17 to require an entity to present separately portfolios of insurance contracts that are assets and portfolios of insurance contracts that are liabilities (see paragraphs BC330A-BC330B).] [When it issued IFRS 18, the IASB carried over these requirements in IAS 1 to IFRS 18.]