The March 2015, Issue 44 of KPMG ISG’s IFRS Newsletter: Insurance – Moving Towards International Insurance Accounting highlights the IASB’s discussions at the March 2015 education session about its insurance contracts project. Specifically, the Board discussed three key issues:
- Should the contractual service margin be adjusted (unlocked) to reflect changes in an entity’s share of underlying items? If so, how and for which contracts?
- How should the contractual service margin be recognized in profit or loss?
- How should an entity measure the interest expense to be presented in profit or loss, or in other comprehensive income (if the IASB decides to permit or require presentation in OCI)?
The IASB expects to complete its redeliberations about its insurance contracts project in 2015 and issue a final standard in early 2016.