The new accounting standard IFRS 17 will bring a number of changes and challenges beyond the reporting standard for Australian insurers.
Following a 20 year process of development and consultation the new international accounting standard on Insurance Contracts is finally here.
On 18 May 2017, the International Accounting Standards Board (IASB) released its new accounting standard, IFRS 17 Insurance Contracts.
Whilst IFRS 17 is a significant change for insurers across the globe, the principles embraced within the standard confirm that Australian insurance accounting has led the world for many years with its emphasis on fair value accounting. While the new accounting model embraces fair value accounting it will however provide insurers with more accounting choices which, in turn, will introduce more volatility to the profit and loss account.
Although better placed for the transition than foreign insurers, Australian insurers are not immune and will be impacted in many ways by the requirements of IFRS 17, including the way they report profitability and their financial position.
In our publication titled IFRS 17 – What it means for Australian insurers we examine:
The publication also incorporates aspects of how IFRS 17 interacts with the requirements of other accounting standards affecting insurers, and the increasing reliance on Australia’s regulators for successful implementation of IFRS 17.