IFRS issues IFRS 17 Insurance contracts
Released 18 May 2017
The International Accounting Standards Board (IASB) has issued International Financial Reporting Standard (IFRS) 17 Insurance Contracts.
IFRS 17 replaces IFRS 4, which was brought in as an interim Standard in 2004. IFRS 4 has given companies dispensation to carry on accounting for insurance contracts using national accounting standards, resulting in a multitude of different approaches. As a consequence, it is difficult for investors to compare and contrast the financial performance of otherwise similar companies. IFRS 17 solves the comparison problems created by IFRS 4 by requiring all insurance contracts to be accounted for in a consistent manner, benefiting both investors and insurance companies. Insurance obligations will be accounted for using current values – instead of historical cost.
More details are available at IFRS.