development of a comprehensive IFRS Standard for insurance contracts. IFRS 17 supersedes IFRS 4 and completes the Board’s project to establish a specific IFRS model for the accounting for insurance contracts. IFRS 17 is effective from 1 January 2021. A company can choose to apply IFRS 17 before that date but only if it also applies IFRS 17 – Insurance Contacts Technical summary of IFRS 17 Objective IFRS 17 Insurance contracts establishes the principles for the recognition, measurement, presentation and disclosure of Insurance contracts within the scope of the Standard. The objective of IFRS 17 is to ensure that an entity provides relevant information that faithfully represents those For some reinsurance contracts held, applying the requirements in IFRS 17 will result in a group that comprises a single contract. 6 Paragraphs 14‒24 of IFRS 17 and paragraphs BC115‒BC139 of the Basis for Conclusions on IFRS 17. 7 A portfolio comprises contracts subject to similar risks and managed together. 8 Paragraph 61 of IFRS 17. This topic page is part of our Insurance – Transition to IFRS 17 series, which covers the discussions of the International Accounting Standards Board and its Transition Resource Group (TRG) regarding the new insurance contracts standard. You can also find more insight and analysis on the new insurance contracts standard at IFRS – Insurance. IFRS 17 Insurance Contracts was issued by the International Accounting Standards Board (Board) on 18 May 2017. The Board has been undertaking a number of activities to support implementation of the Standard, and has established a Transition Resource Group. The Board is currently proposing some The existing requirement in IFRS 17 reflects all the rights and obligations arising from a group of insurance contracts as a single asset or liability, i.e. the unit of account is a group of insurance contracts. Each group balance consists of a liability for remaining coverage and a liability for incurred claims.
IFRS 17 establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts within the scope of the standard. The objective of IFRS 17 is to ensure that an entity provides relevant information that faithfully represents those contracts. This information gives a basis for users of financial statements to assess the effect that insurance contracts have The term ‘insurer’ or ‘insurance company’ refers to an entity that issues insurance contracts as defined in IFRS 17. The International Accounting Standards Board (the Board) issued IFRS 17 Insurance Contracts in May 2017. IFRS 17 sets out the requirements that a company1 should apply in reporting information about insurance
IFRS Perspectives: Update on IFRS issues in the US. In May 2017, the IASB issued its comprehensive new accounting model for insurance contracts, IFRS 17 1 – replacing its 2004 ‘temporary’ standard (IFRS 4). If IFRS 4 was mainly business as usual for insurance accounting, IFRS 17 is anything but. with certain limitations. IFRS 17 provides principlebased -requirements that aim to improve the comparability of the measurement and presentation of entities insurance contracts across reporting in jurisdictions applying International Financial Reporting Standards (IFRS). As in IFRS 17 itself, references in this paper to insurance contracts The IFRS 17 grouping: Insurers need to disclose information bases on group of contracts. A group is a managed group (often a product) of contracts which were al profitable, onerous, or may become onerous (decided at inception) with a certain inception year. An expected profitable car insurance started in 2018 is an example group.
Investment contracts with discretionary participation features linked to insurance contracts; Comparison between measurement approaches of IFRS 4 Phase 2 and the new measurement approaches of IFRS 17. The heart of IFRS 17 is composed of the application of different measurement approaches to the relevant insurance and reinsurance groups of e) clarify, in the final amendments to IFRS 17, that IFRS 17:66(c)(ii)—for subsequent measurement of a group of reinsurance contracts held when a group of underlying insurance contracts become onerous—applies when underlying insurance contracts are measured applying the premium allocation approach. Board discussion Recommendation (a) in IFRS 17 are more extensive than the current reporting frameworks in many jurisdictions under IFRS 4, Insurance Contracts (IFRS 4), an interim standard effective prior to the adoption of IFRS 17. Appendix A includes a summary highlighting what is new and different in IFRS 17 compared to the disclosure requirements in IFRS 4. development of a comprehensive IFRS Standard for insurance contracts. IFRS 17 supersedes IFRS 4 and completes the Board’s project to establish a specific IFRS model for the accounting for insurance contracts. IFRS 17 is effective from 1 January 2021. A company can choose to apply IFRS 17 before that date but only if it also applies IFRS 17 – Insurance Contacts Technical summary of IFRS 17 Objective IFRS 17 Insurance contracts establishes the principles for the recognition, measurement, presentation and disclosure of Insurance contracts within the scope of the Standard. The objective of IFRS 17 is to ensure that an entity provides relevant information that faithfully represents those For some reinsurance contracts held, applying the requirements in IFRS 17 will result in a group that comprises a single contract. 6 Paragraphs 14‒24 of IFRS 17 and paragraphs BC115‒BC139 of the Basis for Conclusions on IFRS 17. 7 A portfolio comprises contracts subject to similar risks and managed together. 8 Paragraph 61 of IFRS 17. This topic page is part of our Insurance – Transition to IFRS 17 series, which covers the discussions of the International Accounting Standards Board and its Transition Resource Group (TRG) regarding the new insurance contracts standard. You can also find more insight and analysis on the new insurance contracts standard at IFRS – Insurance.
Recognises profit from a group of insurance contracts over the period the An entity applies IFRS 17 to insurance contracts, including reinsurance contracts 18 May 2017 Measurement. On initial recognition, an entity shall measure a group of insurance contracts at the total of: [IFRS 17:32]. (a) 1 Jan 2020 For many insurance groups, both IFRS 9 and IFRS 17 will be implemented at the same time, which increases the implementation risk of both Contracts that are issued more than one year apart should not be in the same group. Figure 1: IFRS 17 liability measurement model. Contractual service margin. 6 Feb 2020 The IASB's intention to allow insurers to recognise gains on reinsurance contracts held in respect of groups of onerous underlying contracts of IFRS 17 credit card contracts that meet the definition of an insurance contract if, starting a group of insurance contracts that are directly attributable to a