Insurance Accounting Newsletter — Issue 22, August 2011
This edition is entitled The post-Tweedie insurance project: an uncertain horizon.
In the last two months we have seen significant setbacks in the efforts of the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) to develop the new insurance accounting standard for both IFRS and US GAAP.
The greatly reduced pace of progress, with a little more than six hours of Board activity over June and July, forewarned a further delay in the target publication date for the new insurance IFRS. The release date has now been pushed back to the second half of 2012, with re-exposure likely in the next six to eight months.
In respect of the technical deliberations, the business that we report in the newsletter below took place at three joint meetings on 13 and 15 June and on 21 July. At all these meetings the lack of agreement between the two Boards was an indicator of the growing uncertainty that now surrounds the continuation of this project. The meagre progress in terms of new decisions includes the joint agreement to consider only direct acquisition costs as part of the contractual cash flows (13 June) and a preliminary compromise between the Boards on the requirements for the presentation of insurance contracts in the Statement of Comprehensive Income (15 June).