United States

IFRS Newsletter: Insurance - Moving Towards International Insurance Accounting

Jun 30, 2014
From the Financial Reporting View and the IFRS Institute

The June 2014, Issue 41 of KPMG ISG's IFRS Newsletter: Insurance - Moving Towards International Insurance Accounting discusses the IASB's redeliberations about:

Determining Discount Rates When There Is a Lack of Observable Data. The Board tentatively decided that when determining discount rates, entities would use judgment to (1) ensure that appropriate adjustments are made to observable inputs and (2) develop unobservable inputs that would not contradict relevant observable data using the best information available.

Asymmetrical Treatment of Gains from Reinsurance Contracts. After inception, entities would recognize in profit or loss changes in estimates of cash flows for a reinsurance contract that result from changes in estimates of cash flows that are recognized immediately in profit or loss for an underlying insurance contract.

Level of Aggregation. The objective of the proposed insurance standard is to provide principles for measuring an individual insurance contract. However, the Board tentatively decided that entities could aggregate insurance contracts, if aggregation would meet that objective.

Participating Contracts. The Board gave directional guidance to the staff for developing alternatives to be discussed in future meetings.

Read KPMG ISG's IFRS Newsletter: Insurance - Moving Towards International Insurance Accounting