IFRS 17 Insurance Contracts - The Fundamentals (ICAS)

Overview

IFRS 17 is the long awaited replacement to IFRS 4 which was a temporary standard issued in 2004 to coincide with the introduction of IFRS Standards for EU listed entities and which permits a wide variety of accounting treatments for insurance contracts.IFRS 17 was originally scheduled to be effective for periods commencing on/after 1 January 2021, although the effective date has now been delayed to 1 January 2023.

The objective of IFRS 17 is to provide increased transparency of the profitability of insurance companies, and to provide enhanced comparability between the financial statements of insurance companies worldwide.

Who is this for?

This half day course will benefit anyone who requires an overview of the new accounting standard for insurance contracts - IFRS 17.

What will you learn?

On completion of the course you will be able to:

• Identify which transactions are within the scope of IFRS 17
• Determine whether non-insurance elements require separation
• Understand the fundamentals of the General Measurement Model
• Apply the Premium Allocation Approach

Detailed course coverage will include

• The nature of insurance contracts
• The alternative models
• The General Measurement Model
  • Separation of non-insurance elements
  • Grouping of insurance contracts
  • Initial measurement:
  • Fulfilment cash flows
  • The contractual service margin
  • Subsequent measurement
  • The liability for remaining coverage
  • The liability for incurred claims
  • Income statement amounts
  • Illustrative examples
  • Onerous and profitable contracts
  • The Premium Allocation Approach
  • Circumstances for use
  • Illustration of accounting

Other related courses

IFRS Developments - an Essential Guide