IFRS 16 & 17 Training for the Insurance Industry
Theme: Enhancing reporting compliance for the Insurance Industry
Date: 26th -27th April 2021
Time: 8.30AM – 1.00PM
IFRS 17 is the newest IFRS standard for insurance contracts and replaces IFRS 4 on January 1st, 2022. It states which insurance contracts items should be on the Financial Position and the Comprehensive Income Statement of an insurance company, how to measure these items and how to present and disclose this information.
IFRS 17 Insurance Contracts establishes the principles for the recognition, measurement, presentation, and disclosure of Insurance contracts within the scope of the Standard. The objective of the standard is to ensure that an entity provides relevant information that faithfully represents those contracts. This information gives a basis for users of financial statements to assess the effect that insurance contracts have on the entity’s financial position, financial performance, and cash flows.
Key definitions that require familiarization of the standard include: Insurance contract, Portfolio of insurance contracts, Contractual Service Margin (CSM), Fulfilment Cash Flows and Risk adjustment for non-financial risk.
IFRS 16 specifies how an IFRS reporter will recognise, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value. Lessors continue to classify leases as operating or finance, with IFRS 16’s approach to lessor accounting substantially unchanged from its predecessor, IAS 17.
IFRS 16 was issued in January 2016 and applies to annual reporting periods beginning on or after 1 January 2019.
This workshop simplifies the information needed to identify the specific requirements of the new IFRS 17 Insurance standards. It also brings you up to date with the possible application challenges to improve performance and reporting. The following topics will form part of the discussion for this industry workshop:
- Transitioning from IFRS 4 to IFRS 17
- Objectives and scope of IFRS 17
- Identification of portfolios of Insurance Contracts
- Choosing the right IFRS 17 measurement models (GMM, PAA and VFA) to measure policy liabilities while adding operational value
- Disclosure Requirements under IFRS 17
- IFRS 17 Requirements for presentation in the Financial statements
- The impact of IFRS on the financial statements
- Recognition, Initial Measurement, subsequent measurement and derecognition under IFRS 17
- IFRS 17 Effective date and transition
- The way forward and what ICPAK is doing to prepare the industry for the adoption of IFRS 17 including operational challenges.
- Scope of the IFRS 16 standard
- Understanding the new model of lease treatment in Financial Statements
- Separating lease and Non-Lease component