The January 2016, Issue 51 of KPMG ISG’s IFRS Newsletter: Insurance highlights the January IASB meeting, at which the Board completed planned technical deliberations for its insurance contracts project including discussions about:
Level of Aggregation. The Board decided to provide additional guidance so that entities can better assess the levels at which they can group insurance contracts for recognizing losses on onerous contracts and allocating the contractual service margin. The Board also decided not to provide an exception within the proposals when regulation affects the pricing of contracts.
Discretionary Cash Flows. The Board decided that an entity should specify the effect, under the general measurement model, of its discretion related to participating contracts that include discretionary cash flows to policyholders.
Status of the Project. In February 2016, the Board intends to discuss whether it complied with all of the required due process steps, and whether the staff can begin the balloting process for the forthcoming insurance contracts standard. Assuming the final insurance contracts standard is completed around the end of 2016, the expected effective date of the standard would be January 1, 2020 or 2021.