Wednesday, November 9th, 2022
Insurance companies around the world have less than three months before IFRS 17, the new standard for insurance contracts promulgated by the International Accounting Standards Board (IASB), becomes effective. This reporting standard was issued in 2017 after more than a decade of development time and will become mandatory for annual reporting periods beginning on or after January 1, 2023. It applies to any organization that issues insurance and/or reinsurance contracts—not just to licensed insurance and/or reinsurance companies. It affects all listed insurers in Europe as well as all insurance companies in several jurisdictions with IFRS as a mandatory insurance accounting regime (e.g., Australia, Canada, South Korea, Spain, many countries in central Eastern Europe, the Middle East, Africa, the Caribbean etc.).
For insurers, applying IFRS 17 will result in major changes to their financial statements and key performance indicators, such as replacing the familiar major income position “Gross Written Premiums” with “Insurance Revenue.”
To read the the complete article, please follow the link: https://contingencies.org/ifrs-17-the-time-is-now/