European field-test of the proposed accounting guidance for insurance contracts
24 Jun, 2013
The European Financial Reporting Advisory Group (EFRAG) and the national standard-setters of France (ANC), Germany (ASCG), Italy (OIC) and the United Kingdom (FRC) are performing a field-test in order to evaluate how the proposals contained in the IASB's Exposure Draft ED/2013/7 'Insurance Contracts' would affect European companies applying IFRS.
The ED, published on 20 June 2013, proposes a comprehensive accounting model for insurance contracts. It establishes principles to report the nature, amount, timing and uncertainty of cash flows from insurance contracts.
The field-test initiated by EFRAG and the major national standard-setters in Europe is meant to assist in the understanding of the implementation, impact, and costs and benefits of applying the proposed guidance. The field-test will also assess the understandability and usefulness of the information, including the proposed disclosures that will result from applying the requirements.
The field-test is accompanied with a questionnaire. It will start on 10 July 2013 and completed questionnaires should be returned by 11 October 2013. Entities wishing to participate in the field-test are asked to contact their national standard-setters (where applicable) or EFRAG. Copies of the questionnaire will be sent to them.
Further information is available through the press release on the EFRAG website.