The International Accounting Standard Board’s (IASB’s) replacement for IFRS 4 Insurance Contracts is approaching its final stages of development.
Illustrative examples of the impact of IFRS 4 Phase 2 on insurers financial statements.
Although the publication date of the forthcoming standard IFRS 4 Phase 2 is not yet known, the majority of its requirements have been tentatively agreed by the IASB. Including the detailed and complex presentation disclosure requirements.
The new accounting standard will represent a significant change for many insurers both in terms of financial results and operating model. A core component of these changes are the new presentations and disclosures.
These changes will re-shape primary statements and change the disclosures in the financial statements. Changes to the data gathered and maintained will be needed. This will be a complex exercise for many companies. Using illustrative examples, our new report - Opening the black box: Demystifying IFRS 4 Phase 2 - we unpack this complexity for the industry so that the implementation can be planned as efficiently as possible. In addition, new IT systems can be planned for, with greater confidence, building in the new requirements, future-proofing investment dollars.
KPMG has recently developed a new tool that links the presentation and disclosure requirements to the detailed data requirements. Please reach out to Erik Bleekrode, Insurance Accounting Change Partner, to learn more.