Financial Services Ireland

Insurance Accounting Alert March 2016

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Insurance Accounting Alert March 2016

IASB provides directional guidance for finalization of amendments to IFRS 4 relating to IFRS 9 adoption. During its March meeting, the International Accounting Standards Board (IASB or the Board) commenced redeliberations on the exposure draft (the ED) Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (Amendments to IFRS 4).

The ED proposed to amend existing IFRS 4 Insurance Contracts (existing IFRS 4) to allow entities issuing insurance contracts to mitigate certain effects of applying IFRS 9 together with the existing IFRS 4 before the new insurance contracts standard (IFRS 4 Phase II) becomes effective.

The Board discussed the feedback and comment letters received on the proposals in the ED. The staff also asked the Board to provide directional decisions on how it should move ahead with finalizing the proposals.

The IASB’s website provides information about tentative decisions made on the insurance contracts accounting model prior to this meeting, including:

• The cover note and papers on the insurance contracts project for the February meeting.

These contain a summary of the progress on the project to date, an overview of the tentative decisions made, and the proposed model for insurance contracts: www.ifrs.org/Meetings/MeetingDocs/ IASB/2016/February/AP02B-InsuranceContracts.pdf

• The cover note for the Board’s papers on insurance for the March meeting which contains the background to the December 2015 ED: www.ifrs.org/ Meetings/MeetingDocs/IASB/2016/ March/AP14-Insurance-and-IFRS-9.pdf

• Further information on the project and the proposed model is available at: www.ifrs.org/Current-Projects/ IASB-Projects/Insurance-Contracts/ Pages/Insurance-Contracts.aspx

Summary of feedback The Staff presented an extensive summary of the feedback received in 96 comment letters on the proposals in the ED and from outreach performed by the IASB during the comment letter period. The staff also provided the Board with a specific analysis of the feedback from an extensive outreach exercise with users of financial statements.

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James Maher

Insurance, Sector Leader
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Insurance Accounting Alert March 2016

IASB provides directional guidance for finalisation of amendments to IFRS 4 relating to IFRS 9 adoption