The Standard applies retrospectively unless that is impracticable or C5A applies, with two exceptions: the IAS 8 quantitative disclosure of the effect is not required, and the B115 risk-mitigation option may not be used for periods before transition (it may be used prospectively from transition only where the hedging relationships are designated no later than the option is applied). Retrospective application means identifying, recognising and measuring every group, and every asset for acquisition cash flows, as though IFRS 17 had always been in force (leaving out the recoverability test for periods before transition), removing any balance that would not exist, and taking the net difference to equity. The modified retrospective approach (subject to C6(a)) or the fair value approach may be used for a group only where retrospective application is impracticable for it. An entity may even so choose fair value measurement at transition for a direct participation group it could measure retrospectively, provided it applies the risk-mitigation option prospectively from transition and had, before that date, used derivatives, FVTPL instruments or reinsurance to reduce financial risk. Where retrospective measurement of an acquisition cash flow asset is impracticable, that asset may be measured under the matching modified retrospective or fair value provisions.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.