The entity identifies portfolios, each made up of contracts that carry similar risks and are managed as one, and splits every portfolio of contracts issued into at least three groups: contracts onerous at initial recognition; contracts with no significant chance of becoming onerous later; and all remaining contracts. It may assess sets of contracts rather than single contracts only where reasonable and supportable information shows the whole set belongs in one group. Under the PAA, no contract is presumed onerous when first recognised, absent facts and circumstances pointing the other way; under the general model, the test for no significant chance of becoming onerous relies on how likely assumptions are to change and on the entity's internal reporting, with no duty to gather further data. Contracts that would land in separate groups solely because law or regulation limits pricing by policyholder characteristics may be kept together, but this may not be extended by analogy. Groups may be split further, but no group may contain contracts issued more than a year apart; one contract can make up a group. The composition of groups is fixed at initial recognition, contracts are added under paragraph 28 and groups are never reassessed, although fulfilment cash flows may be estimated for a larger set and then allocated to the groups.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.