The September 2014, Issue 43 of KPMG ISG’s IFRS Newsletter: Insurance – Moving Towards International Insurance Accounting discusses the IASB’s redeliberations about:
Premium-Allocation Approach. The Board tentatively decided that an entity would (1) recognize insurance contract revenue in profit or loss based on the passage of time, unless the expected pattern of release of risk is significantly different from the passage of time and (2) measure interest expense to be recognized in profit or loss on the liability for incurred claims using the discount rate that is locked in when the entity recognizes that liability.
Participating Contracts: Interest Expense. The Board directed the staff to investigate the book yield and effective yield approaches to determining interest expense and the effects of those approaches on presenting changes in discount rates in other comprehensive income.