Sun Life 2015 Annual Report Download - page 143

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11.B.ii Method and Assumption Changes
Investment Contracts with Discretionary Participation Features
Investment contracts with DPF are measured using the same approach as insurance contracts.
Investment Contracts without Discretionary Participation Features
Investment contracts without DPF are measured at FVTPL if by doing so, a potential accounting mismatch is eliminated or significantly
reduced or if the contract is managed on a fair value basis. Other investment contracts without DPF are measured at amortized cost.
The fair value liability is measured through the use of prospective discounted cash-flow techniques. For unit-linked contracts, the fair
value liability is equal to the current unit fund value, plus additional non-unit liability amounts on a fair value basis if required. For non-
unit-linked contracts, the fair value liability is equal to the present value of expected cash flows.
Amortized cost is measured at the date of initial recognition as the fair value of consideration received, less the net effect of principal
payments such as transaction costs and front-end fees. At each reporting date, the amortized cost liability is measured as the value of
future best estimate cash flows discounted at the effective interest rate. The effective interest rate is the one that equates the
discounted cash payments to the liability at the date of initial recognition.
11.B.iii Investment Contract Liabilities
Investment contract liabilities consist of the following:
As at December 31, 2015 SLF Canada SLF U.S. SLF Asia Corporate Total
Individual participating life $–$–$– $18$18
Individual non-participating life – – 322 4 326
Individual annuities 2,184 24 – 72 2,280
Group annuities – – 289 – 289
Total investment contract liabilities $ 2,184 $ 24 $ 611 $ 94 $ 2,913
Included in the Investment contract liabilities of $2,913 are liabilities of $701 for investment contracts with DPF, $2,208 for investment
contracts without DPF measured at amortized cost, and $4 for investment contracts without DPF measured at fair value.
As at December 31, 2014 SLF Canada SLF U.S. SLF Asia Corporate Total
Individual participating life $ – $ – $ – $ 16 $ 16
Individual non-participating life – – 316 5 321
Individual annuities 2,121 32 – 71 2,224
Group annuities – – 258 – 258
Total investment contract liabilities $ 2,121 $ 32 $ 574 $ 92 $ 2,819
Included in the Investment contract liabilities of $2,819 are liabilities of $661 for investment contracts with DPF, $2,142 for investment
contracts without DPF measured at amortized cost, and $16 for investment contracts without DPF measured at fair value.
11.B.iv Changes in Investment Contract Liabilities
Changes in investment contract liabilities without DPF are as follows:
For the years ended December 31, 2015 2014
Measured at
fair value
Measured at
amortized cost
Measured at
fair value
Measured at
amortized cost
Balance as at January 1 $ 16 $ 2,142 $ 18 $ 2,000
Deposits – 438 – 519
Interest –43–41
Withdrawals (13) (435) (1) (443)
Fees –(5)–(3)
Change in fair value ––(1) –
Other –19122
Change in estimate –––3
Foreign exchange rate movements 16(1) 3
Balance as at December 31 $ 4 $ 2,208 $ 16 $ 2,142
Notes to Consolidated Financial Statements Sun Life Financial Inc. Annual Report 2015 141