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IFRS Newsletter: Insurance – Moving Towards International Insurance Accounting

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

The July 2014, Issue 42 of KPMG ISG’s IFRS Newsletter: Insurance – Moving Towards International Insurance Accounting discusses the IASB’s July meeting at which the Board fine-tuned the proposed model for accounting for nonparticipating contracts by (1) confirming which rate would be used for subsequent measurement of the contractual service margin and (2) considering the requirements for changes in the accounting policy to present the effects of changes in discount rates in profit or loss or in other comprehensive income.

The FASB’s last critical challenge remains the accounting for participating contracts. The Board directed the staff to further explore an effective yield approach for determining the interest expense to be presented in profit or loss, to be discussed at future meetings. After the Board addresses participating contracts, it will consider whether its decisions would affect nonparticipating contracts.

Read IFRS Newsletter: Insurance – Moving Towards International Insurance Accounting