Financial Reporting Council’s Post

An important thematic on IFRS 17 👇

Last week FRC issued a new thematic review on IFRS 17 ‘Insurance contracts’. The key observations echo the results of the last year IFRS 17 review with a great focus on IFRS 17 judgements and estimates (incl. discount rate, risk adjustment, coverage units, etc.), recommending insurers to: ✏️ Use tailored wording for significant judgements disclosure and explain why a particular judgement is significant. ✏️ Provide specific details on methods and assumptions used and meaningful sensitivities to assumptions changes where there is a significant estimate identified. Other recommendations in the review remind insurers to: ✏️Ensure sufficient and proportional disaggregation of the disclosures. ✏️Provide disclosures that explain the CSM movement for the period as well as the expected CSM recognition in appropriate time bands in the future. ✏️Ensure alternative performance measures are well explained and reconciliation is provided, to the line items, subtotals, and totals in the financial statements. In addition, attention should be paid to the quality of the following disclosures: 🗒Nature and extent of risks arising from insurance contracts; 🗒Insurance finance income and expenses. #ifrs17 #forvismazars

After a year of reporting under IFRS 17, comparing results across the insurance sector remains complex, with many insurers reporting that it hasn't had a material impact on business operations https://ow.ly/lboM50S9bjr #IFRS17 #InsuranceIndustry #InsuranceInnovation #WTWPerspective

After a year of reporting under IFRS 17, comparing results across the insurance sector remains complex, with many insurers reporting that it hasn't had a material impact on business operations https://ow.ly/yGB850Sb2m6 #IFRS17 #InsuranceIndustry #InsuranceInnovation #WTWPerspective

After a year of reporting under IFRS 17, comparing results across the insurance sector remains complex, with many insurers reporting that it hasn't had a material impact on business operations https://ow.ly/rrOT50S9q3n #IFRS17 #InsuranceIndustry #InsuranceInnovation #WTWPerspective

In our latest Insights article, we delve into the realm of IFRS17 and its implications on the insurance industry. IFRS17 represents a substantial departure from the previous standard, IFRS4, in terms of how insurance contracts are managed and reported. However, many small and medium-sized insurers are still grappling with the complexities associated with these new standards. To better navigate the transition to IFRS17, companies are advised to embrace a systematic and thorough approach, encompassing critical steps such as impact assessment, data scrutiny, and system enhancements. For a comprehensive understanding, dive into the full article at: https://buff.ly/49HiBZ8 #IFRS17 #Insurance #AuditAndAssurance #AccountingStandards #SMEs #HLBInsights

IFRS 4 is a set of rules that explains how insurance companies should handle their financial records. It covers things like how they should value their insurance policies and report their income. #IFRS4 #insurancecontracts #accountingstandards

Is your insurance company ready for #IFRS 17? (It's no longer optional!) This transformative standard brings major changes to #Insurance #Accounting. Learn more in our latest blog post! #ifrs17 #insuranceaccounting

We’re pleased to share our latest issue of #InsurerUpdate - our publication for insurance carriers. Insurer Update is designed to help you keep on top of the most relevant financial reporting and tax changes and understand the implications for medium sized and smaller insurers. In this edition, we look at: ­🔸Pillar Two: what it means for UK intermediate entities of US parented insurance groups 🔸Operational resilience: what firms must do by the March IBS deadline 🔸UK GAAP: what the FRC’s changes to FRS 102 means for insurers 🔸Solvency UK: what the revised thresholds mean for firms and the benefits of becoming a non-directive firm (NDF).   Download our publication to discover more 👉 https://lnkd.in/ej4pme9T #PKF #SolvencyII #GAAP #OperationalResilience

📍 Top 3 Insurance Accounting Aspects Most Impacted by IFRS 17 The adoption of IFRS 17 will bring profound changes to insurance accounting, fundamentally transforming how insurers measure, report, and disclose insurance contracts. Navigating this transition will require careful planning, collaboration, and investment in resources, as well as special attention to these 3 key areas where IFRS 17 will have the most impact. 💡 Learn more in our blog: https://bit.ly/4bBVAr0 #TRGInternational #IFRS17 #Insurance #Accounting