Key tentative decisions arising from re-deliberations of the ED
- The use of comprehensive income for recording some aspects of insurance liability re-measurement.
- A confirmation of a previous decision to require a separate explicit risk margin in insurance liabilities.
- A revision of transition proposals requiring retrospective application with a practical expediant when impracticable and an agreement that an insurer should recognize acquisition costs as part of the insurance liability in the pre-coverage period.
- A decision that an insurer should accrete interest on the residual margin at a locked-in discount rate.
In September 2012, the IASB announced its intention to issue a limited re-exposure draft of the proposed new insurance contracts accounting standard in the first half of 2013. The new standard is expected to be released in the first half of 2014.
Please contact your KPMG Accounting Advisory Services adviser for more information.