Ported from the open-source IFRS 17 Calculation Engine — ifrs17/Import/3ImportScope-Actuals.ipynb and ifrs17-template/PracticalUseCases/ActualsOutsideThePeriod/ActualsUseCaseReports.ipynb — originally written for Systemorph Cloud.

Actuals and deferrals

Not ported. The MeshWeaver port has the estimate types for actuals (EstimateType A, AA, OA, DA), the deferrable amount types (DeferrableAmountType) and the write-off step WO/C, but no scope computes actuals or deferrals. This page documents the method of the original engine.

Actual values

The original distinguishes three kinds of actual value by estimate type:

actuals (A),
advance actuals (AA),
overdue actuals (OA).

Advance and overdue actuals follow a simplified AoC chain: BOP → release → write-off → EOP.

Actual base

The actual base sets the values for actual, advance and overdue amounts:

ActualBase(step) = 0                                                   if the AoC type is AM
                   ActualBase(BOP) + ActualBase(CF) + ActualBase(WO)  if the AoC type is EOP and the estimate type is not A
                   the imported actual                                otherwise

It is also a function of the estimate type and the amount type.

Written actuals

Actuals are the actual base with estimate type A. The only valid step is the release:

Actual(release) = ActualBase(release) | estimate type = A

Advance actuals

Advance actuals are cash flows due inside the reporting period that were paid before it: receivable claims, receivable expenses, payable premiums.

AdvanceActual(step) = ActualBase(step) | estimate type = AA

Overdue actuals

Overdue actuals are cash flows due inside the reporting period that are paid after it: payable claims, payable expenses, receivable premiums. Their sign convention is the inverse of the default: premiums are positive, claims and expenses negative.

OverdueActual(step) = ActualBase(step) | estimate type = OA

Written versus effective cash flows

Actuarial cash flows for a portfolio valuation are usually modelled on a due (written) basis, derived from the contractual obligations. Effective payments do not follow the written ones exactly, and some fall outside the reporting period — the payables and receivables of accounting. IFRS 17 measures insurance liabilities by the effective cash flows, so the actuals must reconcile the two.

Leaving write-offs aside, the cases are:

Payment effective … / due …	due before the period	due in the period	due after the period
before the period	not relevant: both dates in the past	release of the advance position (`−CF_A`): due now, settled earlier	existing advance balance: settled earlier, not yet due
in the period	release of the overdue position (`−CF_O`): an overdue payment settled now	neither advance nor overdue: due and paid in the period	increase of the advance position (`CF_A`): paid now, not yet due
after the period	unchanged overdue balance: overdue and still not settled	increase of the overdue position (`CF_O`): due now, not settled	not relevant: both dates in the future

A write-off (WO) of a receivable — advance claims and overdue premiums on gross business — releases the balance like −CF_A and −CF_O above. The difference: those releases do not affect the financial performance; a write-off does.

The sign convention matters for the liability for remaining coverage: receivables carry a negative sign and payables a positive one. Adding the advance and overdue balances to the actuarial LRC therefore moves it toward an asset-like character (receivables) or a liability-like character (payables). An overdue premium, for example, lowers the LRC by the premium still expected; a premium received in advance raises it by the premium not yet due.

The original's case study walks four groups of contracts through three reporting periods — one following the written cash flows exactly, one with an overdue premium, one with a claim paid in advance, one with a premium received in advance and an overdue claim — and shows that every balance returns to zero when the group runs off, through settlements or write-offs.

Deferrable amounts

Deferrals are computed from cash-flow inputs. The approach depends on the EconomicBasisDriver of the group:

L or C — discounting applies (deferrable as cumulated discounted cash flow);
N — no discounting (deferrable undiscounted).

Deferrable as a cumulated discounted cash flow

The present value of the deferrable amount types is used. The AoC chain is the one for present values, plus an amortization step driven by a release pattern (from the data node parameters or supplied as a cash flow):

Deferrable(step) = IAF · AggregatedDeferrable(IA)                     if the AoC type is IA
                   0                                                  if the AoC type is CF
                   PV(CF) − ActualBase(CF) | estimate type = A        if the AoC type is EA
                   −AF · Σ_(previous steps) Deferrable                if the AoC type is AM
                   Σ_(previous steps) Deferrable                      if the AoC type is EOP
                   PV(step)                                           otherwise

IAF is the interest accretion factor and AF the amortization factor, both defined on Present values.

Deferrable undiscounted

The nominal cash flows of the deferrable amount types are used. Without present values, expenses falling in different months of the period can be amortized and released by shifting the release pattern, so this approach needs a release pattern on the data node parameters. The chain is simplified to BOP (I for the opening, entered as a cash flow; N for new expenses), AM and EOP:

Deferrable(step) = the previous period's EOP                          if the AoC type is BOP
                   −AF(shift) · Σ_(previous steps) Deferrable         if the AoC type is AM
                   Σ_(previous steps) Deferrable                      if the AoC type is EOP
                   0                                                  otherwise

where shift is the month in which the cost occurs, counting from 0.