While the publication date of the forthcoming insurance contracts standard, IFRS4 Phase 2 is not yet known, the majority of its requirements have been tentatively agreed on by the IASB, including the detailed and complex presentation and disclosure requirements.
The new requirements will re-shape the primary statements and change the disclosures in insurers’ financial statements. Significant changes to the data gathered and maintained will be needed. As a result, this could be a complex exercise for many companies. In December we published a new report, Opening the Black Box: Demystifying IFRS 4, bringing the requirements to life through illustrative examples using one of the components of a complete set of IFRS financial statements. This podcast covers key areas illustrated in the report.
Given the complexity of the new requirements, we wanted to undertake this exercise to provide insurers and reinsurers with an understanding of the level of detail and potential impacts on financial statement reporting. Additionally, new IT systems can be planned for with greater confidence, building in the new requirements and future-proofing investments.
If you would like to discuss any of the ideas raised – or to discuss your organization’s IFRS 4 Phase 2 implementation plan, please contact your local KPMG office.
For further reading on this topic please see our report: