Introduction

This publication introduces the concept of ‘Contract Boundary’ as defined in the IFRS17 standard. Contract Boundary is the period during which substantive rights and obligations exist under a policy, in which the entity can compel the policyholder to pay the premiums or in which the entity has an obligation to provide services to the policyholder.

Contract Boundary helps in determining the various cashflows to be considered for computations and reporting purposes.

Important Cashflows

he cashflows as written about above, are the key ones taken into consideration given thecontract boundary of each insurance policy. There are other cashflows that may or may not beincluded within the boundary period.

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