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Wednesday 23 July 2014

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Insurance Contracts

Phase II Field Test


Phase II Field Tests


Field test Round I

Between September and December 2009 the IASB conducted a first round of targeted field tests which was summarised in the Targeted Field Test Results. The Board considered the results from the field test when it developed the Exposure Draft (ED) Insurance Contracts.

For more information regarding the first round of field test please click here.

Field test Round II

The second round of field test involved 15 companies and was conducted between September 2010 and January 2011. This second round was intended to test the proposals in the ED in order:

  • to understand how the proposed approach would operate in practice;
  • to identify where more detailed implementation guidance may be required;
  • to evaluate the costs and benefits of the proposed approach;
  • to assess how the proposed approach will help insurers to communicate with users of their financial statements.

The boards discussed a preliminary field test report at their joint meeting on March 2nd 2011 which highlighted the issues the tested companies faced in respect of above proposals. The staff plan to prepare the final field test report which would summarise how those issues were addressed in the final standard.

What materials have been provided?

We have provided participants in the field test with the following materials:

Other organisations are welcome to use these materials. However, we will have limited ability to respond to questions and input from non-participants. Furthermore, no additional participants will be added at this stage.

Field test Round III

The IASB conducted a third round of field tests during comment period of the 2013 Exposure Draft Insurance Contracts to:

  • understand how the revised proposed would operate in practice;
  • the cost and operational challenges associated with the revised proposals compared to the original proposals in the 2010 ED; and
  • assess how the revised proposals will help entities that issue insurance contracts to communicate with users of their financial statements.

The IASB discussed the plan for field tests at its November 2012 meeting.

What materials have been provided?

We have provided participants in the field test with the following materials:

Summary of field work

 

The staff has prepared a document that summarised the results and observations arising from the field work.