Applicable for accounting periods beginning on or after 1st January 2023, IFRS 17 changes fundamentally the way in which insurance contracts are accounted for and reported. After investing 20 or so years of development effort into IFRS 17, the IASB expectation is that it will bring greater transparency about the profitability and financial position resulting from the conduct of insurance contract business.
Preparing for and implementing IFRS 17 is problematic and challenging, requiring considerable effort to gain an initial understanding of the impact on the reported numbers as well as identifying upgrades to processes and systems to ensure they can provide IFRS 17 compliant data.
This series of on-line sessions will focus on a numerical review of the basics of the general accounting model and the premium allocation approach applicable to groups of insurance contracts in a number of practical scenarios. The series will also cover the modified accounting models for reinsurance. Along the way we will point to the main areas of difficulty likely to arise in practice when applying IFRS 17.
The series will also act as a gateway to gaining, through attending further Quorum Training modules, a more detailed knowledge of IFRS 17 and how to apply it in practice.
By the end of the sessions, participants will be able to:
Demonstrate a high-level knowledge of the basic elements of the general accounting model applied by IFRS 17
Articulate the key numbers that will be presented in the statements of profit or loss and financial position and how different they are to those under current practice
Communicate to others the story that the IFRS 17 numbers will be telling
Explain the main areas of difficulty that will most likely arise in practice
Session 1 setting the scene
Why IFRS 17?
Identifying insurance contracts, scope exclusions and unbundling
Worked example illustrating the difference between previous and IFRS 17 reporting practice
Identification of tricky application issues
Session 2 initial recognition
Portfolios, cohorts and groups- arriving at the unit of account
Initial recognition scenarios and journals
How to derive the required inputs
Session 3 general model – accounting for groups of profitable contracts
Financial statement presentation
Session 4 general model – accounting for groups of contracts that become onerous and those that are onerous from the start
Subsequent measurement – focussing on the accounting treatment of loss components
Financial statement presentation
Session 5 the premium allocation approach
When can the PAA be used?
Initial recognition and subsequent measurement in all the scenarios featured in sessions 3 and 4
Session 6 reinsurance
An overview of the modified general model
NB this will include the changes in the current ED of amendments to IFRS 17
Initial recognition and subsequent measurement:
Premium allocation approach
WHO SHOULD ATTEND
Anyone needing a understanding of this standard particularly the finance department, to legal teams, sales departments, etc.
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