• Service: Audit, IFRS
  • Date: 5/2/2014

Proposals confirmed for presentation of insurance contract revenue  

The third of five issues targeted by the IASB’s 2013 exposure draft has been addressed, with the Board confirming its proposals for the presentation of insurance contract revenue in profit or loss and disclosures related to volume information.

Also, in response to feedback on issues that were not targeted by the ED, the IASB has decided to limit future discussions to seven of these items. Only three are expected to require much analysis – portfolio definition and unit of account, discount rate for long-term contracts and unobservable market data, and asymmetrical treatment of reinsurance contracts. The staff expect the other non-targeted issues – fixed-fee service contracts, significant insurance risk guidance, recognition of contracts acquired through portfolio transfers or business combinations, and allocation pattern for the contractual service margin – to be more straightforward.

Given the Board’s progress to date, and the items still to be discussed, a final standard is still expected in the first half of 2015.

IFRS Newsletter: Insurance - issue 39, April 2014

Feature image
This edition of IFRS Newsletter: Insurance highlights the IASB’s discussion in April 2014 on its insurance contracts project.

© 2015 KPMG IFRG Limited is a UK company, limited by guarantee. All rights reserved. KPMG IFRG Limited, registered in England No 5253019. Registered office: 8 Salisbury Square, London, EC4Y 8BB


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