IFRS 17 Insurance Contracts
13 June 2017
The International Accounting Standards Board (IASB) issued IFRS 17 Insurance Contracts on 18 May 2017. IFRS 17 supersedes IFRS 4, which was introduced as an interim standard in 2004. IFRS 4 offered the option of recognising and measuring insurance contracts in accordance with local standards, which resulted in a large number of different approaches. This did not add to the comparability of insurers. The objective of IFRS 17 is to resolve the comparability issues created by IFRS 4 by setting a single principle-based standard for all insurance contacts. This requires all insurance liabilities to be recognised at fair value rather than at the value at which they were incurred, and the applied principles to be adjusted regularly.
BDO performed an analysis of the principal changes to the standard compared with IFRS 4. Click on the hyperlink below to download the article which addresses these changes. Please do not hesitate to contact our specialists if you have any questions about IFRS 17.