New Insurance Contracts Accounting Standard

On 18 May 2017, the International Accounting Standards Board (IASB) released the final version of IFRS 17, the new accounting standard for insurance contracts. IFRS 17, also known as IFRS 4 Phase II, replaces IFRS 4 in order to globally harmonise the different national accounting rules for insurance companies. According to the new international rules, insurance contracts are measured in a Building Blocks Approach at current value, based on periodically updated assumptions about cash flows, discount rates and risks. IFRS 17 applies as from 1 January 2021. Yet, the far-reaching accounting changes introduced by IFRS 17 require insurance companies to already start their implementation projects. Finalyse’s accounting experts help insurers to manage the transition to IFRS 17 – contact Silvio Santarossa for more information!