IFRS 17

IFRS 17 is an international accounting standard that governs insurance contracts. It replaces IFRS 4 and aims to bring greater consistency and transparency to insurance accounting.

Under IFRS 17, insurers must measure insurance contracts using a current, market-consistent approach, reflecting the timing and uncertainty of cash flows. The standard introduces a three-level model for recognizing and measuring insurance contracts: the general measurement model, the premium allocation approach, and the variable fee approach.

IFRS 17 requires insurers to report their financial performance in a way that reflects the economics of their insurance contracts. This includes recognizing profit over the coverage period and presenting comprehensive information about insurance liabilities, revenue, and expenses. The goal is to enhance comparability across companies and provide more relevant information to stakeholders.

IFRS 17 aims to standardize insurance contract accounting practices globally, improving transparency and consistency in financial reporting within the insurance industry.