IFRS 17 | INSURANCE CONTRACTS
The new ‘Insurance Accounting Standard – IFRS 17’, issued after 20 years of development, introduces a principle-based accounting and deals with recognition, measurement, presentation and disclosures requirements for insurance contracts. It specifies approaches for measurement of insurance contracts, General Model, Premium Allocation Approach and Variable Fee Approach. It also deals with the presentation in the statement of financial performance in respect of Insurance Contracts.
OVERVIEW OF THE MEASUREMENT MODELS
CRITICAL AREAS TO LOOK FOR OR JUDGEMENTS REQUIRED?
- Level of aggregation
- Adjustment of non-financial risk in measuring liability for incurred claims
- Assessing fulfilment cash flows
- Adjustments to reflect the time value of money
Tag: Accounting, Finance, Financial Stability, IFRS 17, Insurance Contracts, Overview