An insurance enterprise shall prepare and present consolidated business reports and consolidated financial statements of affiliates as well as affiliation reports in accordance with the Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises adopted by the FSC.
If the entities that must be included in consolidated financial statements of affiliates pursuant to the Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises are entirely the same as those that IFRS 10 requires to be included in preparing the consolidated financial report covering the parent and its subsidiaries, and if the required disclosures to be made in the consolidated financial statements of affiliates are already made in the consolidated financial report covering the parent and its subsidiaries, an insurance enterprise is not required to prepare a consolidated financial statements of affiliates, provided that a statement to that effect is made and presented on the front page of the consolidated financial report.

When an insurance enterprise undergoes business combination, it shall determine the actual acquirer and whether it is an actual transfer of control in accordance with IFRS 3. Unless otherwise provided, it shall measure the acquiree's identifiable assets and liabilities at fair value on the date of acquisition, and recognize goodwill or a gain from a bargain purchase. The date of acquisition is the date on which the acquirer obtains control of the acquiree.
If any investment property or interest in joint operations that the insurance enterprise acquires and obtains constitutes a "business" as defined under IFRS 3, it shall be handled in accordance with the preceding paragraph.
When an insurance enterprise undergoes business combination and acquires insurance contracts or reinsurance contracts held within the scope of IFRS 17, it shall measure the liabilities or assets in accordance with IFRS on the acquisition date. If acquired insurance contracts issued are onerous, the insurance enterprise shall recognize them as part of goodwill or gain on a bargain purchase (for contracts acquired in a business combination within the scope of IFRS 3), or as a loss in profit or loss (for contracts acquired in a transfer).

Goodwill which is recognized in connection with a business combination of an insurance enterprise shall be tested for impairment at least annually in accordance with IAS 36. If there is any significant difference between the actual operation conditions of the acquired company after the business combination and the expected benefits at the time of acquisition, it shall be disclosed in the Notes.