Cynthia Braman's blog

IFRS 17 Insurance Contracts - Worth the Wait or Wait and See?

Submitted by Cynthia Braman on Thu, 06/01/2017 - 4:38pm

By Bruce Darling, FSA, MAAA and Booke Instructor

Time passingThe International Accounting Standards Board (IASB) finally met a (self-imposed) deadline by issuing IFRS 17 Insurance Contracts May 18, 2017, ending a decade and a half of deliberations, debate, false starts and divergence rather than convergence with U.S. GAAP in the process of establishing international accounting principles for insurance contracts.

This statement will apply to insurance contracts issued by companies reporting under International Financial Reporting Standards, which includes companies in the European Union and many other parts of the globe, including Canada.  U.S. companies reporting upstream to parents who report under IFRS also will be affected by this guidance.

By Barry Wilhelm

Business people entering an office buildingThe Financial Accounting Standards Board (FASB) recently held a public roundtable to gather feedback on its proposal that would fundamentally change the accounting model for certain long-duration insurance contracts.

In FASB’s view, the changes are minor. However, industry participants in the roundtable did not share that view.

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