IFRS 17 will be effective from 1 January 2023 and it will change the recognition, measurement, presentation and disclosure of insurance contracts. It directly impacts how insurers value their insurance liabilities and recognise profits.
Insurers must define methodologies for non-prescribed items such as discount rate, risk adjustment, contract boundaries. New systems must be developed to handle data, perform calculations and generate accounting ledger entries.
Validation of your entire IFRS 17 landscape.
Including methodology, configuration and output from accounting engine (cashflows, journal entries and disclosures) which helps provide assurance and identify any gaps in your process.
Our in-house IFRS 17 Toolkit includes:
Independent model validation review.
Setting key design principles, assessing implementation of the methodology, data, assumptions and documenting results.
Assistance in performing your parallel runs and reconciliations with the current IFRS 4 and with the solvency balance sheet
Technical and process recommendations and benchmarking will allow you to refine your approach ahead of transition
Audit Trail with clear documentation of our independent validation process which can be used as support for external audit and future reviews
On the 25th June 2020, the International Accounting Standard Board (IASB) has published several amendments to IFRS 17. These amendments address many of the concerns raised by the industry and aim at facilitating the implementation of IFRS17, without deviating from its underlying principles. Along with a postponed implementation deadline, the amendments aim mostly at decreasing the administrative cost and complexity as well as improving the consistency of the financial statements results. This article goes through all the changes that result from these amendments, and discusses their impact on the IFRS 17 implementation.Read
This Expert input gives a basic overview of IFRS 17 and how it is going to be different from the current standards (IFRS 4). We note that there are some similarities between some of the aspects of Solvency II and IFRS standards and examine them, as well as the differences. Furthermore, there are predictions on how the standards are going to influence the operations of insurers and their contracts. Since the insurers are likely to implement IFRS 17 in concert with IFRS 9, the expert input also focuses on how this joint implementation is likely to proceed, what the main challenges are and why it is ultimately a good decision to implement them together.Read