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6e9a4826-93e3-49de-8ae7-9a74b2b14b2b |
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8684964a-bab1-4235-93a8-5fd5e24a1d0a |
| job_id |
gtjuuxmj-3271 |
| base_model_name |
xevyo |
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/home/sid/tuning/finetune/backend/output/xevyo-bas /home/sid/tuning/finetune/backend/output/xevyo-base-v1/merged_fp16_hf... |
| model_name |
Should longevity swaps |
| model_desc |
Should longevity swaps |
| model_path |
/home/sid/tuning/finetune/backend/output/gtjuuxmj- /home/sid/tuning/finetune/backend/output/gtjuuxmj-3271/merged_fp16_hf... |
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xevyo |
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/home/sid/tuning/finetune/backend/output/xevyo-bas /home/sid/tuning/finetune/backend/output/xevyo-base-v1/merged_fp16_hf... |
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xevyo-base-v1 |
| dataset_desc |
This IFRS Interpretations Committee staff paper ex This IFRS Interpretations Committee staff paper examines how longevity swaps—contracts that transfer the risk of pension members living longer than expected—should be accounted for within defined benefit pension plans under IAS 19 Employee Benefits. Longevity swaps require the pension plan to make fixed payments while receiving variable payments linked to actual benefit payments to retirees.
The central question is whether these swaps should be:
Measured at fair value as plan assets (View 1), or
Split into a variable “insurance-like” leg and a fixed “premium” leg (View 2), with each measured differently.
View 1: Measure as Plan Assets at Fair Value
Supporters of View 1 argue that the swap is a single derivative contract and should follow the standard IAS 19 treatment of plan assets. They point to IAS 19 paragraphs 8 and 113, and IFRS 13, which require fair value measurement. Paragraph 142 also lists longevity swaps as examples of derivatives that can form part of plan assets. Under this view, the swap is initially recorded at zero (as swaps are usually entered at market value) and remeasured at fair value each period, with changes recorded in other comprehensive income.
View 2: Split the Swap Into Two Legs
Supporters of View 2 argue the swap functions like buying a qualifying insurance policy—except the premium is paid over time. They propose splitting it into:
Variable leg (treated like a qualifying insurance policy under IAS 19.115), measured as the present value of the matching obligations.
Fixed leg (representing premiums), treated either as part of plan assets at fair value or as a financial liability measured at amortized cost.
They also debate how to treat the difference between the variable and fixed legs at inception—either as a profit/loss or as part of remeasurements in OCI.
Findings from Global Outreach
The IFRS staff surveyed standard-setters, regulators, accounting firms, and pension specialists across multiple jurisdictions. They found that:
Longevity swaps are not yet widespread, though more common in the UK.
In jurisdictions where they occur, View 1 is the overwhelmingly predominant practice.
There is minimal diversity in accounting treatment.
Several respondents questioned whether longevity swaps could qualify as insurance contracts (suggesting View 2 lacked a strong basis).
Committee Recommendation
Because longevity swaps are uncommon and existing practice already aligns closely with fair value measurement under IAS 19 and IFRS 13, the Committee concluded that no new interpretation is needed. The issue was not added to the IFRIC agenda, as current guidance is considered sufficient to prevent diversity in practice.
If you want, I can also provide:
✅ A short 3–4 line summary
✅ A student-friendly simplified version
✅ MCQs or quiz questions from this file
Just tell me!... |
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/home/sid/tuning/finetune/backend/output/gtjuuxmj- /home/sid/tuning/finetune/backend/output/gtjuuxmj-3271/data/gtjuuxmj-3271.json... |
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null |
| status |
queued |
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1765223696 |
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1765223916 |
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False |