Introduction:

Onerous contracts are insurance contracts that are loss making from inception or become loss making during the lifetime of the contract. A Loss Component (“LC”), depicting the total expected loss under the contract iscreated in case of an onerous contract and is rolled-forwarded at each subsequent measurement

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How to Onerous Contracts work?

Any change in FCF on account of change in estimates of future cashflows (such as changes in assumptions, model, methodology etc.) is fully allocated to Loss Component till it becomes zero and a CSM is created.

To gain more insights on Onerous contracts and how they are measured under IFRS17 or for any other related discussions, please feel free to reach out to us at kap@ka-pandit.com

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Volatility in the Interest Rate March 2017 v/s June 2017

Employee Benefit Obligations are to be valued based on G-Sec rate of estimated term as prevalent at the end of the reporting period.

Topic to be covered: Volatility in the Interest Rate March 2017 v/s September 2017

Employee Benefit Obligations are to be valued based on G-Sec rate of estimated term asprevalent at the end of the reporting period.

KAP’s Interest Rate Updates For Employee Benefits as on 30th June 2025

Summary of G-sec rates and par yields for employee benefits as of 30th June 2025.

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