IASB decides on targeted re-exposure of insurance proposals
28 Sep, 2012
The IASB has announced that it will re-expose its proposals on accounting for insurance contracts, however, it will do so with targeted questions. Although the deliberations on the project are not complete the IASB believes re-exposing the proposals will contribute to reducing uncertainty in the market.
In coming to the decision to re-expose, the Board considered a number of factors including the length of time that has already been devoted to the project (the comprehensive project on insurance contracts was added to the IASB's agenda in 2001) and the importance of issuing a final standard soon. Balancing the belief that a re-exposure is necessary and the wish not to start discussions almost from scratch again by re-exposing the whole exposure draft (and thus to delay the finalisation of the standard), the IASB has decided on targeted questions on:
- treatment of participating contracts;
- presentation of premiums in the statement of comprehensive income;
- treatment of the unearned profit in an insurance contract;
- presenting, in other comprehensive income, the effect of changes in the discount rate used to measure the insurance contract liability; and
- the approach to transition.
A date for the re-exposure has not yet been announced. Please click for access to the corresponding press release on the IASB website.
