IFRS 17 – Insurance Contracts

Overview

IFRS 17 – Insurance, also known as the International Financial Reporting Standard 17, is a global accounting standard developed by the International Accounting Standards Board (IASB) that governs the accounting treatment of insurance contracts. This specialized course is designed to provide finance professionals, actuaries, accountants, auditors, and business leaders with a comprehensive understanding of IFRS 17 and its implications for insurance contract accounting. 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.

IFRS 17 applies to all insurance contracts issued, including reinsurance. IFRS 17 also applies to certain investment contracts with discretionary participation. The standard does not relate only to insurance companies, but to all entities engaging in insurance contracts. IFRS 17 in principle, transfers all the principles from IFRS 4 to identify an insurance contract. Through this training, participants will gain the skills needed to analyze IFRS 17’s impact on financial statements, ensuring a solid foundation for future compliance.

Participants will learn how to apply IFRS 17 principles and requirements to accurately account for insurance contracts in financial statements. The course covers techniques for identifying insurance contracts, determining contract boundaries, and assessing the expected cash flows and insurance contract liabilities.

Furthermore, the course examines the presentation and disclosure requirements of IFRS 17, including the format and content of insurance contract-related disclosures in financial statements. Participants will learn how to prepare comprehensive and transparent disclosures to provide stakeholders with meaningful information about insurance contracts and their financial implications.

Objectives

• Understand what IFRS 17 is, including its purpose and significance in insurance accounting.

• Measure the evolution of IFRS standards for insurance contracts.

• Understand the changes in IFRS 17 from the current IFRS 4 Insurance Contracts

• Learn the recognition criteria and measurement approaches for insurance contracts under IFRS 17.

• Understand the accounting methodology prescribed by IFRS 17 and its impact on financial statements.

• Explore IFRS 17 transition approaches and requirements, and their implications for financial reporting.

• Appreciate the accounting methodology prescribed in IFRS 17 and evaluate its impact on the financial statements

• Comprehend IFRS 9 transition requirements for insurance companies

• Understand the differences between IFRS 9 and IFRS 17.