IFRS examines implications of IFRS 17 for investors
Released 11 June 2018
The International Financial Reporting Standards Foundation has published an overview of the implications of IFRS 17 Insurance Contracts for the investor community.
IFRS 17 Insurance Contracts was issued by the International Accounting Standards Board in 2017 and is effective for annual reporting periods beginning on or after 1 January 2021 with earlier application permitted as long as IFRS 9 and IFRS 15 are also applied. IFRS 17:
•combines current measurement of the future cash flows with the recognition of profit over the period that services are provided under the contract;
•presents insurance service results (including presentation of insurance revenue) separately from insurance finance income or expenses; and
•requires an entity to make an accounting policy choice of whether to recognise all insurance finance income or expenses in profit or loss or to recognise some of that income or expenses in other comprehensive income.
The article published by the IFRS foundation examines what the new Standard means for the investor community.
View the article at Preparing the market for IFRS 17.