What Is A Split Interest Agreement

B25, „Deferred variable retirement contracts with alternative payment methods at the end of the accumulation period“. If the responsibility of the PNR organisation for its obligation under the interest splitting agreement is not eligible for the exception provided for in point (c) of paragraph 10 because the arrangement is not exclusively life-related, the PNR organisation shall determine whether that liability as a whole meets the definition of a derivative set out in paragraph 6 or whether it contains an incorporated derivative instrument that could justify separate recognition under the paragraph 12, unless a fair value election is made in accordance with the declaration. 155. As we have seen, accounting for interest-sharing agreements can be complex because there are different types of agreements – all with their own nuances. .

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