New Irish GAAP
Illustrative Financial Statements for Insurance Entities
For periods beginning on or after 1 January 2015, the new Financial Reporting Standards (FRS 100, 101 and 102/103) have come into force, bringing with them a number of new options for all Irish entities and groups. The transition to new Irish Gaap presents many challenges to companies including making decisions about their financial reporting framework.
Of particular interest to insurance companies is FRS 103 “Insurance Contracts”. FRS 103 is the standard issued by Financial Reporting Council (FRC) aimed at the accounting treatment and disclosure requirements of Insurance Contracts including financial guarantees in limited circumstances and financial instruments with discretionary participation features. It is aimed at Life and Non-life Irish Insurance and Reinsurance entities, including captives and insurance special purpose vehicles which have decided to apply FRS 102. There is no significant change in accounting treatment of insurance contracts introduced by FRS 103. Rather, FRS 103 aims at consolidation of the accounting requirements for insurance companies in Ireland which were previously contained separately in FRS 27 (for life insurance companies), various statutory instruments containing requirements for life and non-life companies and Statements of Recommended Practice (SORP) issued by the Association of British Insurers (ABI).
Deloitte are delighted to release illustrative FRS 102/103 financial statements which should assist insurance companies who are transitioning from “Old” Irish Gaap to understand the impact on presentation and disclosures, of the new standards.
How can we help
The challenges of transitioning to a new accounting framework will vary from business to business depending on industry, structure and size. Listed companies will want to take the opportunity to re-evaluate the choice of accounting framework used to prepare their individual parent and subsidiary financial statements. Unlisted groups and entities will need to decide whether to move to full IFRSs or transition to the replacement for the previous Irish GAAP, FRS 102/103, taking into account the wider implications of the options on offer.
Our integrated team of accounting and taxation specialists can assist you in assessing and understanding the various impacts of these new standards. If you would like further, more detailed information or advice, or to discuss how these changes could affect your business, please contact your usual Deloitte partner or one of the contacts listed below or to the right on next steps.