IFRS 17 ‘Insurance Contracts’ (IFRS 17 or the Standard) introduces a comprehensive, principles-based framework for the recognition, measurement, presentation and disclosure of insurance contracts, introducing a globally consistent approach to accounting for insurance liabilities. The standard requires entities to measure insurance contracts using current estimates of future cash flows, an explicit risk adjustment and a contractual service margin, fundamentally changing the timing and pattern of profit recognition. As a result, IFRS 17 significantly enhances transparency and comparability in financial reporting, while also necessitating substantial changes to data, systems, processes and governance frameworks across reporting entities.
The articles in our ‘Insights into IFRS 17’ series explain the key features of the Standard and provide insights into their application and impact. This article explains the initial recognition and measurement of insurance liabilities under IFRS 17.
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We hope you find the information in this article helpful in giving you some insight into IFRS 17. If you would like to discuss any of the points raised, please speak to your usual Grant Thornton contact or visit www.grantthornton.global/locations to find your local member firm.
Insights into IFRS 17 - Initial recognition and measurement.pdf
Authors
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Sarah Carroll
Sarah is the global head of the IFRS and corporate reporting team focussing on the consistent application of both International Financial Reporting Standards (IFRS) and sustainability reporting standards.View Profile