Home Business Insurance World Insurers Must Gear Up For IFRS 17 Implementation
Insurance World

Insurers Must Gear Up For IFRS 17 Implementation

Share
Share

Insurers need to gear up for the upcoming International Financial Reporting Standards (IFRS) 17 on Insurance Contracts, says professional services firm Grant Thornton Abdulaal (Bahrain).

They will have more time to prepare for implementation of the standard as the International Accounting Standards Board (IASB) earlier this week announced that the effective date of the implementation will be deferred to annual reporting periods beginning on or after 1 January 2023. The new deadline represents a one-year delay to the previously proposed date that itself was deferred from January 2021.

Grant Thornton Bahrain says that Middle East insurers have begun the first phase of impact assessment. Regulators across the region have issued directives to submit the first-hand impact assessment and project plan for other phases to comply fully with IFRS 17.

The main aim of IFRS 17 is to standardise insurance accounting to ensure that users of IFRS financial statements are able to compare their financial results with those of other insurance companies. Among other things, under IFRS 17, the calculation methods for the measurement of contract liabilities and insurance revenue are revised. Both now incorporate the time value of money, which will have a greater bearing on long tail insurance contracts as opposed to short tail.

Source Middle East Insurance Review

Share

Businesstoday Magazine

Businesstoday Conference/Awards

Related Articles

NAICOM, NDPC Sign MoU To Safeguard Data Of Policyholders

NKECHI NAECHE-ESEZOBOR-The National Insurance Commission, (NAICOM) and the Nigeria Data Protection Commission,...

NAICOM, CIIN Tell Insurance Firms Directors To Uphold GRC Principles For Industry Sustainability

BY NKECHI NAECHE- ESEZOBOR–The National Insurance Commission, (NAICOM), has urged directors in...

Non Settlement Of Claims Is A Ground For Cancellation Of License- NAICOM

BY NKECHI NAECHE- ESEZOBOR–The National Insurance Commission on Wednesday told insurance directors...

Onifade Calls For AI Innovation To Drive Insurance Growth At WAICA Conference In Accra

Niyi Onifade, Sector Head of Heirs Insurance Group, has called for the...