Insurance Accounting Newsletter - August 2013
A closer look at the new proposals - The last chance to influence the IASB on the new IFRS on insurance contracts.
This edition focuses on the five key areas of the 2013 ED where the IASB seeks feedback and describes the considerable business challenges which lie ahead for the insurance industry in relation to addressing these areas.
IASB published on 20 June its revised exposure draft ED/2013/7 on Insurance Contracts (the 2013 ED) which will remain open for comments until 25 October. This comment period may mark the final opportunity for the insurance industry to influence the new IFRS on Insurance Contracts expected to be released during the second half of 2014. Although the IASB has re‑exposed the entire text of the draft IFRS, it only seeks targeted comments on five areas, thus most parts of the new IFRS should be treated as nearly final. The five areas are those where the IASB judged there was significant change from the original model presented in the 2010 ED.
On the other hand, the FASB has published on 27 June 2013 an exposure draft of a new US pronouncement for insurance contracts. This document presents the new accounting model for insurance contracts that has been developed jointly with the IASB. However, as commented in several past issues of our Insurance Accounting Newsletter, the proposal is not fully converged with the 2013 ED of the IASB and material differences remain. These are not covered in this issue of Deloitte’s Insurance Accounting Newsletter. Finally, from a due process perspective, the US exposure draft is open for comments on the entire model given that FASB had only published a discussion paper in 2010.
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