• Service: Audit, IFRS
  • Date: 7/29/2014

Insurance – fine-tuning the non-participating contracts model 

In its July meeting, the Board fine-tuned the non-participating contracts model by confirming which rate would be used for subsequent measurement of the contractual service margin, and considering the requirements for changes in the accounting policy to present the effects of changes in discount rates in profit or loss or in other comprehensive income.

The Board’s last critical challenge remains the accounting for participating contracts. The Board directed the staff to further explore an effective yield approach for determining the interest expense to be presented in profit or loss, to be discussed at future meetings. Once the Board has addressed participating contracts, it will consider whether any of its decisions would impact non-participating contracts.

Read our IFRS Newsletter: Insurance for a summary of recent developments.

IFRS Newsletter: Insurance - issue 42, July 2014

Feature image
IASB fine-tunes the model for non-participating contracts in its insurance 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: 15 Canada Square, London, E14 5GL


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