IFRS and the insurance industry

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29 Sep 2008

Publicly accountable entities in Canada are required to switch to IFRSs starting in 2011 (with an option to adopt IFRSs earlier, even in 2008, with approval of the Provincial securities regulator).

The transition from Canadian GAAP will be different for every company. However, particular industries will experience common themes and issues. Deloitte (Canada) has published On the Road Ahead: IFRS Top Ten Accounting Issues in Insurance Industry (PDF 437k). For the insurance industry overall, the following are likely to be the top ten recurring areas of particular significance, and likely differences from Canadian GAAP:
  1. Insurance contracts – measurement principles
  2. Product classification
  3. Insurance contracts – financial statement presentation and disclosures
  4. Insurance contracts – embedded derivatives and unbundling
  5. Insurance contracts – changes in accounting policies
  6. Impairment
  7. Financial instruments
  8. Real estate
  9. First-time adoption of IFRS
  10. Other areas including business combinations, leases, share-based payments/related parties, and employee benefits


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