| 3.16 | Banking and other non-insurance entities with insurance subsidiaries sometimes account for the insurance business in their consolidated financial statements on an embedded value or similar basis under which, in addition to the value of the retained surplus in the insurance subsidiary, an asset is recognised for the VIF. This FRS permits the continuation of such a practice only if the valuation policy is amended, if necessary, to exclude from the measurement of the value of the future profit to shareholders any value attributable to future investment margins. |
| 3.17 | No value shall be attributed to in-force long-term insurance business other than: |
| (a) | in accordance with paragraphs 3.12(c), 3.12(d) or 3.16 above; or |
| (b) | amounts recognised as an intangible asset as part of the allocation of fair values under acquisition accounting in accordance with paragraph 2.27. |
| 3.18 | Where the value attributable to a VIF asset recognised under paragraph 3.16 or paragraph 3.17(b) includes an amount in relation to non-participating business for which the entity also recognises an amount under paragraph 3.12(c) or 3.12(d), the amount recognised under paragraph 3.12(c) or 3.12(d) shall be reduced to exclude the amount that is included in relation to that business under paragraph 3.16 or paragraph 3.17(b). |
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