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  • Service: Audit, IFRS
  • Date: 10/31/2013

Worth waiting for? KPMG comments on insurance proposals 

When the IASB and FASB each issued proposals for new insurance contracts standards in June, we labelled them ‘a new world for insurance’. Now, the Boards’ respective comment periods have closed – and KPMG has provided comments on their proposals.

Overall, we welcome the proposals, and although they would be complex to implement they do respond to many aspects of constituent feedback on profit or loss volatility arising from short-term market fluctuations.

 

We believe that both Boards’ proposals represent an improvement on those issued in 2010, and that arriving at common approaches under both reporting frameworks would mean a significant improvement in transparency and consistency. However, while we broadly agree with the principles in the revised proposals, we do have several specific areas of concern. Furthermore, we believe that the Boards should seek to resolve key differences between their respective proposals.

 

However, the goal of a single comprehensive insurance contracts standard should not come at the expense of a significant delay. Given the current diversity in accounting practice for insurers under IFRS, an insurance IFRS is urgently needed.

KPMG comments on Proposed Accounting Standards Update Insurance Contracts

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IASB ED 2013 7 & FASB Proposed Accounting Standards

© 2014 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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