IFRS 17 „Insurance Contracts“ establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts issued with the aim of establishing a comprehensive and consistent accounting model for insurance contracts. IFRS 17 will become effective for annual reporting periods beginning on 1 January 2023. One of the main features of IFRS 17 is the identification and separation of insurance contracts into the level at which insurance contracts are measured, and it includes portfolios and groups of insurance contracts according to which onerous contracts should be separated from other contracts. Only contracts issued within a twelve-month period in the so-called cohorts can be grouped together. IFRS 17 introduces a comprehensive general model for the measurement of insurance contracts referred as the general model or building block approach (GM or BBA). The general model in the standard requires insurance contract liabilities to be measured using probability-weighted current estimates of future cash flows, adjusted to present value using current market interest rates, increased for risk adjustment (RA) and a contractual service margin (CSM). Apart from general model, IFRS 17 includes a simplification to the general model called Premium alloaction approach (PAA) and a modified model called Variable fee approach for contracts with direct participation features (VFA). Contractual service margin, CSM , is important component of IFRS 17. CSM is measured as the positive difference between the risk-adjusted present value of expected inflows and outflows for a particular group of contracts. As such, it already shows the expected profitability at the beginning of the contract and is successively recognized in the income statement for the entire period of its duration. For onerous contracts, a loss is immediately recognized in the P&L. Certain changes in the expected present value of future cash flows are adjusting CSM and are therefore recognized in the P&L over the remaining contractual period. The effect of changes in discount rates is recognized either in the P&L or in other comprehensive income, depending on the choice of accounting policy. Recognition of insurance revenue and insurance service expenses is presented in the statement of comprehensive income based on the services provided during the period. The amounts that the insured will receive, regardless of whether the insured event has occurred, are not shown in the income statement, but are recognized directly in the balance sheet. The results of insurance services are presented separately from the insurance finance income or expenses. With the new standard, companies are required to publish extensive disclosures that provide information on the amounts recognized under insurance contracts and the nature and extent of the risks arising from those contracts.