United States

IFRS 9 for Insurers – Assessing the Impact of the New Financial Instruments Standard

Aug 04, 2014
From the Financial Reporting Network and the IFRS Institute

With the release of a complete IASB standard on financial instruments accounting – IFRS 9, Financial Instruments – the real work for insurance companies is just beginning. The new standard includes revised guidance about the classification and measurement of financial assets, including a new expected credit loss model for calculating impairment, and supplements the new general hedge accounting requirements published in 2013.

Insurers can expect a sea change in financial reporting over the next few years as they plan to adopt new standards on financial instruments and insurance contracts. Before insurers reach conclusions about how they apply IFRS 9, they will want to consider its interaction with the forthcoming standard about insurance contracts.

Read Accounting for financial instruments is changing - What’s the impact on insurance companies?