Insurance Accounting Newsletter — Issue 15, June 2010
This edition is titled Almost there...
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) continued with their regular meetings in May and managed to address most of the remaining issues to be covered by the Exposure Draft (ED). Further meetings are planned for June and the publication date of the ED has unofficially been moved to July 2010 and is likely to be before the July IASB meets again that month.
As well as meeting twice in May, the FASB & IASB also met for a special meeting on 1st June. The Boards have made good progress, although there are still a number of disagreements which will result in alternative approaches being presented in the ED.
The Staff made a final attempt to resolve the disagreement over the accounting for uncertainty using an explicit risk adjustment or a composite margin model. Although the Boards did not reach a consensus, they agreed on how each approach should be applied enabling their Staff to make progress with the drafting of the ED.
A number of other topics were discussed and agreed upon in the May and 1 June meetings including: risk adjustment valuation techniques; release of margins; unbundling; and scope. Additional Staff work on the finalisation of disclosure requirements was requested.