Today: September 24, 2018, 7:16 pm
  
Business

Best’s Briefing: New Accounting Standard IFRS 17 Will Provide Enhanced Reporting

PR-Inside.com: 2018-09-13 13:29:04

Best’s Briefing: New Accounting Standard IFRS 17 Will Provide Enhanced Reporting

A.M. Best
Carlos Wong-Fupuy
Senior Director
+44 20 7397 0287
carlos.wong-fupuy@ambest.com
or
Yvette Essen
Director, Research, Communications &
Media – Europe, Middle East & Africa
+44 20 7397 0322

yvette.essen@ambest.com
or
Edem Kuenyehia
Director, Market Development &
Communications
+44 20 7397 0280

edem.kuenyehia@ambest.com

The new International Financial Reporting Standard (IFRS 17) could provide better insight into underwriting performance and enable comparisons to be drawn between insurers, according to a new A.M. Best briefing.

The Best’s Briefing, “New Accounting Standard IFRS 17 Will Provide Enhanced Reporting,” notes IFRS 17 calculations aim to bring consistency and comparability across the world, and is likely to provide greater granularity. Following a long period of preparation and discussion, the standard was published on 18 May 2017, with an effective date 1 January 2021. However, in A.M. Best’s opinion, this leaves insurers with a relatively short period for preparation as they also have to provide comparative figures for the previous year (2020) and there have already been calls for a postponement to its implementation date.

Although IFRS 17 will impose a basic model that is applicable to all jurisdictions for insurers reporting under IFRS, A.M. Best anticipates there will still be some issues of comparability, especially when the standard is first introduced. There are likely to be some areas of interpretation, such as the determination of discount rates, and the criteria on which segmentation of business will be based. With time, those approaches are expected to converge and help comparability.

Carlos Wong-Fupuy, senior director, A.M. Best, said: “Companies will have to differentiate clearly between insurance and investment profits, which will provide additional key indicators to measure the performance of long-term business. Particular situations where apparently strong business positions are weakened by loss-making product lines will be more easily identifiable. More detailed information can help determine (re)insurers’ enterprise risk management practices. A.M. Best expects added refinement in the way that companies incorporate the enhanced performance data in risk management. If there are any implications on how capital is managed and on dividend policies, this may also have some impact on the way analysts assess risk management.”

A.M. Best states there is unlikely to be an immediate significant impact on rated companies in a post-IFRS 17 world. A.M. Best’s approach, in line with its criteria framework, Best's Credit Rating Methodology (BCRM), allows for adjustments where current accounting standards do not necessarily reflect economic reality. This should minimise the ratings impact from any volatility component exclusively attributable to accounting mismatching.

To access the full copy of this briefing, please visit http://www3.ambest.com/bestweek/purchase.asp?recor.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Press Information


Published by
Hossam Abdel-Kader
+43 1 9582319
e-mail
http://www.pr-inside.com/


# 612 Words
Related Articles
More From The Author
Honka building an exclusive holiday resort in [..]
Press Release 13 Aug 2018 Honka building an exclusive holiday resort in Japan Honka Japan is constructing an exclusive holiday [..]
Enfo strengthens its presence in Norway
Enfo strengthens its presence in Norway Enfo Group strengthens its market presence in Norway with the aim of supporting more [..]
CNH Industrial named as Industry Leader in [..]
London, September 13, 2018 CNH Industrial (NYSE: CNHI /MI: CNHI) is the Industry Leader in Machinery and Electrical Equipment in [..]
DOCOMO Digital Partners with Vodacom to Launch [..]
Global mobile payments company, DOCOMO Digital has partnered with Vodacom in Tanzania to give customers in the land of Kilimanjaro [..]
Rare Treasure of the Qing Dynasty – [..]
Renowned antique collector Mr. A.S Horng from Taifu Cultural Relics will hold nationwide exhibition tour in China. This press [..]
 
More From Business
Hurricane Damages Creating Extraordinary Demand for Heavy [..]
The effects of Hurricane Florence have been wide and far reaching, with 37 deaths and billions of dollars in damages [..]
Over 2,900 Took Part in 'In Style [..]
HONG KONG, Sept 21, 2018 - (ACN Newswire) - Major events under the "In Style, Hong Kong" mega promotion in [..]
RetailEX ASEAN 2018 Returns Bigger and Better
Brand-new zones, content rich conferences and cutting-edge retail technology innovation and solutions featured during the three-day [..]
Singapore's Senior Minister of State for Trade [..]
SINGAPORE, Sept 21, 2018 - (ACN Newswire) - Asian Downstream Summit is the anchor oil and gas event during Singapore [..]
Vanwise and Carwise Group Scoop Dealer Award
Vanwise & Carwise Group has won the prestigious award by CarGurus as ‘Top Rated Dealer 2018’ ● Dealer scoops prestigious [..]

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release.