This course focuses on accounting for insurance contracts as per IFRS 17 and also provides an overview of IFRS 9 Financial Instruments for insurers. IFRS 17 was published in May 2017 with amendments issued in 2020. The standard is effective for periods beginning on or after 1 January 2023, though the comparative period begins from 2022. IFRS 9 Financial Instruments was effective for the period beginning on or after 1 January 2018 but there is an option for the insurance companies to defer the application of the standard until IFRS 17 is adopted.
Currently, there are different accounting practices for similar insurance contracts. The objective of IFRS 17 is to ensure that insurers reflect the effect of economic changes in their financial statements in a timely and transparent way. This will provide improved information about the current and future profitability of insurers, improve global comparability of the insurers’ financial statements and enhance the quality of financial information.
This comprehensive virtual course focuses on the accounting approaches for the recognition and measurement of different types of insurance contracts, and the presentation, disclosure and transition requirements. It includes profitable and onerous contracts, contracts with direct participating features and discretionary participating features, and reinsurance contracts. The course also covers classification and measurement of financial assets and financial liabilities, application of the expected credit loss impairment model and an overview of hedge accounting. There will be use of illustrations, case studies and model financial statements to understand the application and impact of IFRS 17 and IFRS 9 on the insurer’s financial statements.
By end of the course, the participants will:
- Understand the changes in IFRS 17 from the current IFRS 4 Insurance Contracts
- Apply the accounting methodology prescribed in IFRS 17
- Analyse the IFRS 17 presentation, disclosure and transition requirements
- Apply the principles in relation to the classification and measurement of financial assets and financial liabilities, impairment and hedge accounting requirements in IFRS 9
- Analyse and interpret IFRS financial statements for insurers