The aim is to get as close to full retrospective application as the entity can using reasonable and supportable information that is obtainable without undue cost or effort. The entity uses such information, makes the most of whatever a fully retrospective approach would have drawn on, and switches to the fair value approach where the information cannot be obtained. Each permitted modification may be used only to the extent information for a retrospective approach is missing. The modifications cover: judgements that would have been made at inception or initial recognition (identifying groups, qualifying for direct participation treatment, identifying discretionary cash flows, the B115 option), made instead with information available at transition; the CSM or loss component, for direct participation contracts and for others alike, including the asset for acquisition cash flows under C14B to C14D and C17A; and insurance finance income or expenses.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.