• AICPA Drafts Guidance On Accounting Issues for Insurers & IFRS 17
  • ISA 315 - 2019 Amendments

AICPA Drafts Guidance On Accounting Issues for Insurers & IFRS 17
                                                            Amendments of Insurance Standards by IFRS & FASB

IFRS 17 is effective for annual reporting periods beginning on or after 1 January 2021 with earlier application permitted as long as IFRS 9 and IFRS 15 are also applied.

Insurance contracts combine features of both a financial instrument and a service contract. In addition, many insurance contracts generate cash flows with substantial variability over a long period. To provide useful information about these features, IFRS 17:

  • combines current measurement of the future cash flows with the recognition of profit over the period that services are provided under the contract;
  • presents insurance service results (including presentation of insurance revenue) separately from insurance finance income or expenses; and
  • requires an entity to make an accounting policy choice of whether to recognise all insurance finance income or expenses in profit or loss or to recognise some of that income or expenses in other comprehensive income.

ISA 315 - 2019 Amendments
This ISA is effective for audits of financial statements for periods beginning on or after December 15, 2021.

More to Come....
Joseph S. Samaha,
Jan 3, 2020, 8:22 AM