FRC publishes thematic review findings on accounting for insurance contracts
16 Nov 2023
The UK Financial Reporting Council (FRC) has published a thematic review on companies’ first-time application of IFRS 17 'Insurance Contracts'.
While the FRC identified examples of good practice, there is scope for improvement under IFRS 17 in the following key areas:
- Providing quantitative and qualitative disclosures, that are company-specific, enabling users to understand how insurance contracts are measured and presented in the financial statements.
- Ensuring that accounting policies are sufficiently granular and provide clear, consistent explanations of accounting policy choices, key judgements and methodologies, particularly where IFRS 17 is not prescriptive.
- Avoiding any boiler plate wording - narrative should always reflect the company’s particular circumstances.
The full review is available on the FRC website.
