ifrs17

 

  • [6] There would also be a new income statement presentation for insurance contracts, including a revised definition of revenue, and additional disclosure requirements.

  • “[8] Other benefits Hoogervorst saw in the new standard were increased consistency across companies in accounting for insurance contracts and a more theoretically valid measurement
    of revenue.

  • [7][8] If the present value of future cash flows would produce a gain at the time a contract is issued the model would also require a “contractual service margin” to offset
    the day 1 gain.

  • [11] Former IASB chairman Hans Hoogervorst regarded the use of a current discount rate as one of the benefits of the new standard, stating that by doing otherwise “the devastating
    impact of the current low-interest-rate environment on long-term obligations is not nearly as visible in the insurance industry as it is in the defined benefit pension schemes of many companies.

  • [5] Under general model of the IFRS 17 model, insurance contract liabilities will be calculated as the present value of future insurance cash flows with a provision for risk.

  • IFRS 17 has a specific accounting approach for such participating contracts, defined as ‘insurance contracts with direct participation features’.

  • “[8] He also stated that current discount rates would “increase comparability between insurance companies and between insurance and other parts of the financial industry,
    such as banks and asset management.

 

Works Cited

[‘1. Cohn, Michael (17 May 2017). “IASB releases insurance contracts standard”. Accounting Today. Retrieved 2017-05-18.
2. ^ Jump up to:a b “IASB finalises fundamental overhaul of insurance accounting”. International Accounting Standards Board. 18
May 2017. Retrieved 2017-05-18.
3. ^ Jump up to:a b c “Amendments to IFRS 17 Insurance Contracts”. IASB. Retrieved 2022-02-28.
4. ^ “IASB to Delay IFRS 17 Implementation after Insurers’ Lobbying Effort”. 19 November 2018. Retrieved 2019-01-02.
5. ^
“IFRS 17 – What does it mean for you?”. Deloitte Ireland. Retrieved 2020-10-25.
6. ^ Jump up to:a b c d e “IFRS17 for General Insurers” (PDF). PwC. Retrieved 2022-02-28.
7. ^ Jump up to:a b “9 Insurers Likely to Be out of Business If IFRS 17 Is
in Place by 2021”. The Korea Economic Daily. 8 November 2016. Retrieved 2016-11-23.
8. ^ Jump up to:a b c d “IASB commits to IFRS 17 release to combat ‘accounting anarchy'”. CCH Daily. Wolters Kluwer. Retrieved 2017-01-08.
9. ^ “In the Spotlight
Eligibility for the Variable Fee Approach” (PDF). Retrieved 2022-02-28.
10. ^ “New insurance standard IFRS 17 to swell Korean insurers’ debt”. Maeil Business News Korea. 20 November 2016. Retrieved 2016-11-23.
11. ^ “PwC: ‘IFRS 17 dwingt verzekeraars
tot minder risicovol beleggen'”. Accountant. 8 November 2016. Retrieved 2016-11-23.
12. ^ cbarckow. “European Union adopts IFRS 17 — with annual cohort exemption”. Retrieved 2022-02-28.
13. ^ “L_2021416EN.01000301.xml”. eur-lex.europa.eu. Retrieved
2022-02-28.
14. ^ “IFRS”. www.ifrs.org. Retrieved 26 June 2019.
15. ^ “Exposure Draft and comment letters—Amendments to IFRS 17”. www.ifrs.org. IASB. Retrieved 19 February 2020.
Photo credit: https://www.flickr.com/photos/sherrysrosecottage/2409069862/’]