IFRS Phase II introduces a new definition of technical provisions (TP) or policy reserves. In the past, insurers could use a fairly simple analysis to calculate the change of TP from one period to another. Now, however, there will be more assumptions to analyze and these will not be locked in, which means they will need to be reset at each valuation date based on the insights of the insurance company at that time. This paper presents a practical implementation of the new requirements under IFRS Phase II and offers guidelines for producing a comprehensive income statement.