Allocation of Operational Costs under Transition to IFRS 17 - a Practical Approach

This project examines the allocation of operating costs in life insurance companies under the International Financial Reporting Standard (IFRS) 17, a significant change from the previous IFRS 4 standard. It focuses on the practical adaptation of the General Model used by XYZ Life Insurance Company to the Modified IFRS 17 General Model, ensuring compliance with the new guidelines while providing a practical guide. The study explores the methodologies of cost allocation, illustrating the impact of IFRS 17 on financial reporting. By analyzing the transition, this project offers insights into the complexities and challenges posed by the new standard and presents a comprehensive framework for efficient cost allocation in the insurance sector.