Authors: David Brunsveld, Servaas Houben
Publisher, publication date: The European Actuary, 2020-07
In light of the potential audience of this article, we sometimes deviate from specific IFRS accounting terms.
IFRS 17 principles behind transition
IFRS 17 is the new accounting standard for insurance contracts, with an objective to provide users with relevant information about the financial performance of insurance contracts. Users can assess the effect of those on an entity’s financial position, performance and cash flows, and between entities globally.
To comply with IFRS 17, a transition is needed from current accounting (e.g. from IFRS 4) to IFRS 17, for all existing contracts. This is to account as if IFRS 17 had always applied and to derecognize balances that would not exist with IFRS 17 (with net differences booked in equity). Continue reading