Where fair value is used for transition, the CSM (or loss component) on that date equals the group's fair value on that date, measured without the IFRS 13 floor for demand features, minus its fulfilment cash flows; for reinsurance held within paragraphs 66A to 66B, the loss-recovery component is the loss component of the underlying contracts times the share of claims it expects the reinsurer to reimburse, allocated on a systematic and rational basis where an onerous group contains both covered and uncovered contracts. Information available at transition may be used to identify groups, to judge whether contracts qualify as direct participation contracts, to identify discretionary cash flows and to apply the B115 option; a group may contain contracts issued over a span longer than one year; discount rates for initial recognition and for the dates claims were incurred may be set at transition; and cumulative OCI may be measured retrospectively where the data allow, set at nil, or, for B134 contracts, set equal to the cumulative OCI on the underlying items. The asset for acquisition cash flows is measured at what the entity would pay at transition to obtain the rights to future recoveries, renewals and new contracts, and it is kept out of the measurement of the groups.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.