New Zealand

Details

  • Service: Audit, Advisory, Accounting Advisory Services
  • Industry: Financial Services, Insurance
  • Type: Regulatory update
  • Date: 4/04/2012

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 Elaine Hultzer

Elaine Hultzer

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Insurance

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IFRS Insurance newsletter - Issue 24 

Moving toward global insurance accounting                                March 2012

 

This edition of IFRS – Insurance Newsletter highlights the results of the IASB and FASB discussions in March 2012 on the joint insurance contracts project. In addition, it provides the current status of the project and anticipated timeline for completion.

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Highlights

 

  • IASB holds educational session on use of other comprehensive income for insurance contract remeasurement.

 

  • Boards decide that an investment component in an insurance contract is an amount that the insurer is obliged to pay regardless of whether an insured event occurs.

 

  • Insurers would not be required to present investment components separately in thestatement of financial position.

 

  • IASB decides to exclude investment components from the aggregate premium in the statement of comprehensiveincome.

 

  • Disclosures required on the portion of the liability that represents the aggregatedportion of premiums excluded from the statement of comprehensive income andamounts payable on demand.

 

  • Boards will further consider whether any investment components that are sufficiently distinct should be separated and recognised in the financial instrumentsstandards.

 

  • Boards decide that the unit of account for determining the residual/single margin and onerous contracts should be at the portfolio level. IASB and FASB decide on different definitions for a portfolio and units of account for the release of the residual/single margins.

 

  • FASB scopes in financial instruments with DPFs into its proposed financial instrumentsstandards.
 

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