IFRS Flashcards
1
Q
describe IFRS
A
International Financial Reporting Standards (IFRS) is a single set of global financial standards issued by the International Accounting Standards Board (IASB)
2
Q
describe IFRS 4
A
- intended to provide limited improvements to accounting for insurance contracts until the IASB completed the second, more comprehensive phase of its insurance accounting project
- allowed insurers to use a variety of accounting practices reflecting differences in national accounting requirements
3
Q
describe IFRS 17
A
- standard to replace IFRS 4, effective 1/1/2023
4
Q
primary objectives of IFRS 17 (2)
A
- improve comparability between insurers
* improve quality of financial information
5
Q
scope of IFRS 17 (3)
A
- insurance and reinsurance contracts issued
- reinsurance contracts held
- investment contracts with discretionary participation features
6
Q
IFRS 17 definition of insurance contract
A
contract under which the insurer accepts significant insurance risk from the policyholder by agreeing to compensate the policyholder if a specified future event
adversely affects the policyholder
7
Q
IFRS 17 model for measuring insurance liabilities
A
- default model is the General Model, consisting of two items:
- present value of future insurance cash flows with a provision for risk
- “contractual service margin” offsets the gain and is amortized over the life of the contract
8
Q
two variations of IFRS General Model
A
- Premium Allocation Approach (PAA)
* Variable Fee Approach (VFA)