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.
IFRS 9 reporting standards replaced the IAS 39 standards recently, requiring institutions which have credit exposure to report an ECL (Expected Credit Loss). This loss must be reported on an annual and a lifetime basis and comprises several components, some of which are difficult to estimate.