3.

13 Premium paid at the beginning of the contract

Here are the journal entries when the premium is paid and allocated at the beginning of the insurance contract.
 
On September 1, 2020, the entity received P1,200,000 cash premiums.     
Paid Insurance acquisition cash flows of           P180,000.     
The entity expected premium receipts allocated to coverage of 4 periods.  

3.14 Premium paid the end of the contract

Here are the journal entries when the premium is paid and allocated at the end of the insurance contract.                                            
                                                           
On September 1, 2020, the entity paid Insurance acquisition cash flows of            P180,000.     
The entity expected premium receipts allocated to coverage of 4 periods.  
The entity will receive a premium of P1,200,000 at the end of the insurance contract.     

Reminder: Insurance contract asset is used when the premium is paid the end of the contract or every period.
3.15 Insurance contract
The Insurance contract (asset) / liability is the sum of the present value of estimated future cash flows, risk adjustment for non-financial
risk, and contractual service margin.
Insurance contract liability occurs if CSM is greater than FCF while an insurance contract asset transpires when CSM is lesser than
FCF.
Here is the equation:

3.16 Insurance contract (asset) / liability

Let us apply the concepts by solving the illustrative problem:

3.17 Summary
1. The International Accounting Standards Board (IASB) has published a new standard, IFRS 17 'Insurance contracts' and
locally adopted as PFRS 17.
2. The new standard requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform
measurement and presentation approach for all insurance contracts.
3. These requirements are designed to achieve the goal of a consistent, principle-based accounting for insurance contracts.
4. PFRS 17 supersedes PFRS 4 'Insurance Contracts' and related interpretations and is effective for periods beginning on or
after 1 January 2021, with earlier adoption permitted if both PFRS 15 'Revenue from Contracts with Customers' and PFRS 9
'Financial Instruments' has also been applied.