The level of detail necessary for users of financial statements to understand the nature, amount, timing and uncertainty of future cash flows that arise from insurance contracts will be an important judgment to make when presenting the disclosures.
Insurers will be required to aggregate or disaggregate information so that useful information is not obscured by either the inclusion of a large amount of insignificant detail, or by the aggregation of items that have different characteristics.
Although insurers are required to make similar judgments when making the disclosures required by IFRS 4, many current disclosures (for example reconciliations of changes in insurance liabilities) are typically made only at reporting entity level with little or no disaggregation.
The IASB has stepped back from setting a minimum level for disaggregation (for example by reportable segment). However, by including examples of bases for disaggregation that might be appropriate in the main body of the exposure draft (ED), it is signaling an expectation that the disclosures made under IFRS 4 Phase 2 should perhaps include more disaggregated information than insurers are currently presenting under IFRS 4.