S.L. 123.216 Art. 5Adoption gains or losses. 4 [S.L.

(1) The change, if any, to an insurer’s accumulated profits or losses brought to charge in the adoption year of assessment as a direct result of the insurer’s implementation of IFRS 17, shall for the purposes of these rules, be referred to as follows:

(a) if the change consists of an increase in the accumulated profits or a reduction in the accumulated losses, this shall be referred to as "adoption gains"; and

(b) if the change consists of an increase in the accumulated losses or a reduction in the accumulated profits, this shall be referred to as "adoption losses".

(2) Any adoption gains arising in the manner stipulated in sub-rule (1)(a), shall be considered as constituting gains or profits forming part of the adjusted profit before tax brought to charge in the adoption year of assessment and all provisions of the Act and these rules relating to the taxation and the collection of such gains or profits, shall apply thereto. mutatis mutandis

(3) Any adoption losses arising in the manner stipulated in sub-rule (1)(b), shall be considered as losses in terms of article 14(1)(g) of the Act incurred in the adoption year of assessment, and all provisions of the Act relating to the deductibility of such losses, shall apply mutatis mutandis thereto. THE ADOPTION OF THE INTERNATIONAL FINANCIAL REPORTING STANDARD 17 INSURANCE 123.216 CONTRACTS