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Details

  • Service: Audit
  • Industry: Financial Services, Insurance
  • Type: Business and industry issue, Newsletters
  • Date: 10/29/2012

IFRS Insurance Newsletter: issue 30, October 2012 

This edition of IFRS Newsletter: Insurance highlights the results of the IASB and FASB (the Boards) discussions in October 2012 on the joint insurance contracts project. In addition, it provides the current status of the project and an expected timeline for completion.


The current status of the discussions indicates that IFRS 4 Phase II will not become effective before 2018, but insurers will have to be prepared to apply IFRS 9 in 2015.

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Highlights:


  • The IASB intends to allow approximately three years between the date of publication and the mandatory effective date of the new insurance standard. Early adoption would be permitted.
  • The IASB is not planning to delay the mandatory effective date of IFRS 9 Financial Instruments for insurers. As a result, insurers will need to apply IFRS 9 for annual periods beginning on or after 1 January 2015.
  • Additionally, the Boards:

   
  • decided on the earned premium presentation for the statement of comprehensive income;
  • decided that insurers would use the discount rate at inception when measuring the liability for remaining coverage and determining claims and interest expense under the premium allocation approach;
  • provided certain adaptations for certain participating contracts and clarified the mirroring approach; and
  • made additional decisions relating to transition.
 

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