We comment on ED 5 on insurance contracts
03 Nov 2003
The Deloitte letter of comment on Exposure Draft ED 5, Insurance Contracts, questions the approach of adopting an 'interim standard' that exempts entities within the scope of the draft standard from complying with certain parts of the IASB Framework and defers addressing recognition and measurement principles until a later date.
Instead, we prefer that the IASB address these issues in a comprehensive project to establish proper recognition and measurement principles for insurance contracts. We also disagree with the insertion of a 'sunset clause' in relation to this exemption. In addition, without adequate guidance on how to determine the fair value of insurance contracts, we suggest the Board reconsider the
usefulness of the fair value disclosures proposed. Click to the Deloitte letter of comment on ED 5, Insurance Contracts (PDF 163k).