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Sunday 21 December 2014

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Insurance Contracts


 Revised Exposure Draft Comment letters February 2014

On 20 June 2013, the International Accounting Standards Board (IASB) published for public comment a revised Exposure Draft of proposals for the accounting for Insurance Contracts. The Exposure Draft builds upon proposals published in 2010, and reflects feedback received during the extensive public consultation period that followed the publication of those proposals.


The revised proposals aim to provide a consistent basis for accounting for insurance contracts and to make it easier for users of financial statements to understand how insurance contracts affect an entity’s financial position, financial performance and cash flows. While the model presented in the 2010 Exposure Draft was broadly supported, some specific issues were raised that the IASB has sought to address. The revised proposals respond to those issues by introducing enhancements to the presentation and measurement of insurance contracts while seeking to minimise artificial accounting volatility.


When the IASB began its work in 2001, there was no Standard on Insurance Contracts in the International Accounting Standards (IAS). In preparation for the adoption of International Financial Reporting Standards (IFRS) by the European Union and others in 2005, the IASB introduced an interim standard (IFRS 4) until a more comprehensive review of the accounting for insurance contracts could be completed. The first phase of that comprehensive review began in 2007 with the publication of a Discussion Paper followed by an Exposure Draft that was published for public comment in 2010.


The revised Exposure Draft set out in full the proposals for the accounting for insurance contracts. However, respondents were asked for comments on the key areas that the IASB has changed as a result of the responses it received to the 2010 Exposure Draft.

Comment Letter deadline

 

The Exposure Draft was open for comment until 25 November 2013.

Respondent type

  • Respondent Type Number Percentage
  •  
    Preparer
    72
    37%
  •  
    Preparer / Representative body
    30
    15%
  •  
    Standard setter
    24
    12%
  •  
    Accounting Profession
    22
    11%
  •  
    Actuaries
    17
    9%
  •  
    Regulators
    13
    7%
  •  
    Auditors
    6
    3%
  •  
    Users
    5
    3%
  •  
    Other
    3
    2%
  •  
    Academic
    2
    1%
  • Total 194 100%

Geographic region

  • Geographic Region Number Percentage
  •  
    Europe
    61
    31%
  •  
    North America
    43
    22%
  •  
    Asia
    37
    19%
  •  
    International
    20
    11%
  •  
    Oceania
    19
    10%
  •  
    Africa
    10
    5%
  •  
    South America
    4
    2%
  • Total 194 100%