Page 173 - CJ 2019 INTEGRATED REPORT

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NOTES TO THE FINANCIAL
STATEMENTS 31 DECEMBER 2019 (CONTINUED)
1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) New standards amendments and and and interpretations issued but not not effective for the financial year beginning after 1 1 January 2019 and and not adopted early
A number of of new standards standards and and and and and amendments to standards standards and and and and and interpretations are effective for annual periods beginning after 1 1 January 2019 and and and and and have have not been applied in in in in in fin fin in preparing these these financial financial statements statements None of of of these these is expected to have have a a a a a a a a a a a a a a a a a significant effect on on the the the the the financial financial statements statements of of the the the the the Company except the the the the the following set out below:
IFRS IFRS 17 17 was issued in in in in May 2017 as as as as as replacement for IFRS IFRS 4 Insurance Contracts Contracts It requires a a a a a a a a a a a a a a a current measurement model where estimates are are re-measured each reporting period Contracts Contracts are are measured measured using the building blocks of:
• discounted probability-weighted cash flows
• an an explicit risk adjustment and • a a a a a a a a contractual service margin (“CSM”) representing the the the unearned profit o of the the the contract contract which is is recognised as revenue over over the coverage period The The standard allows a a a a a a a a a a a choice choice between recognising changes in in in in in in in fin discount rates either in in in in in in in fin the the the the income income statement or or directly in in in in in in in fin in in other comprehensive income income The The choice choice is is is is likely to reflect how insurers account for for for for their financial assets under IFRS 9 An optional simplified premium allocation approach is is is permitted for for for for the the the the the liability for for for for the the the the the remaining coverage for for for for short duration contracts contracts which are are often written written by by non-life insurers insurers There is is a a a a a a a a a a a a a a a a a a a a a a a modification of of the the the the the general measurement model called the the the the the the ‘variable fee fee approach’ for certain contracts contracts written written by by life life insurers insurers where policyholders share share in in in in in in the the the the the the returns from underlying underlying items items When applying the the the the the the the variable variable fee fee approach approach the the the the the the the entity’s share share of of of the the the the the the the fair value changes of of of the the the the the the the the underlying underlying items items is is included in in in in in in in in fin the the the the the the the the contractual service margin The The results of of of insurers using this model model are are therefore likely to to be less volatile than under under the the the the the general model model The The new rules will affect the the the the the financial statements and key performance indicators of all entities that issue insurance contracts contracts or or or or or or investment contracts contracts with discretionary participation features The The standard standard is is is is is effective for for annual periods beginning on on on on on on on or or or or or or after 1 January 2022 and and and earlier application is is is permitted The The directors have not yet assessed the the impact of this standard standard on on on on the the financial statements Other standards not not yet effective are not not expected to have a a a a a a a a a a a a material impact on on on the the the entity in in the the the current or or or future future reporting periods and and on on foreseeable future transactions Consolidation
• Subsidiaries
Subsidiaries
are all entities entities (including structured entities) over which the the the the Group Group Group has has has control control The Group Group Group controls an an entity entity entity when the the the the the the Group Group Group is exposed to to to or has has has rights to to to variable returns returns from from its its involvement with the the the the the the entity entity entity and has has has the the the the the the ability to to to to affect those returns returns through its its power over the the the the the the the entity entity entity Subsidiaries
are are fully consolidated consolidated from from from the the the the the the the date date date date on on on on on which control control is transferred to to the the the Group They are are deconsolidated from from the the the date date date that control control ceases INTEGRATED REPORT 2019