• Service: Audit, IFRS
  • Date: 6/24/2014

Model for non-participating contracts substantially finalised 

The IASB’s model for non-participating insurance contracts is now substantially complete, with the Board reaching decisions on the remaining aspects of this part of its project.

In its June meeting, the Board addressed concerns about the practical difficulties in determining discount rates when there is a lack of observable data, and decided on an exception to the subsequent measurement of reinsurance contracts to better reflect their economic relationship with the underlying insurance contracts. It also provided clarifications and guidance on the level of aggregation of insurance contracts.

The Board’s focus will now shift to participating contracts. The staff have received directional guidance from the Board in this area, so that they can develop alternatives to be discussed in future meetings.

IFRS Newsletter: Insurance - issue 41, June 2014

Feature image
Highlights the IASB’s discussion in June 2014 on its insurance contracts project.

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