United States

In the Headlines: Insurance Contracts -- A New World for Insurance

Jun 24, 2013
From the Financial Reporting Network and the IFRS Institute

In the Headlines 13-11 summarizes the revised IASB Exposure Draft, Insurance Contracts, which proposes a new accounting model for all insurance contracts, including certain financial guarantees. The revised Exposure Draft introduces several key changes from the 2010 Exposure Draft, including a revised measurement model which incorporates the use of other comprehensive income for changes in discount rates, an unlocked contractual service margin, a mirroring approach for some participation features, and a new presentation approach for both the statement of profit and loss and other comprehensive income and the statement of financial position. The IASB developed the Exposure Draft jointly with the FASB; however, the Boards reached different conclusions about limited provisions, including some elements of scope and certain aspects of the measurement model. The FASB is expected to publish its Exposure Draft about insurance contracts shortly.

The comment period ends October 25.

Read In the Headlines 13-11

Read IASB Exposure Draft