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Insurance – Technical deliberations almost complete

Insurance – Technical deliberations almost complete

This IFRS newsletter brings you the latest on the IASB’s insurance project.


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We examine the latest developments and what the discussions could mean for you.

The IASB took another step toward publishing its new insurance contracts standard, having completed most of its technical deliberations.

At its November meeting, the Board evaluated the differences between the general measurement model and the variable fee approach, and also considered discretionary cash flows.


“The IASB has a small number of technical deliberations remaining, in addition to due process considerations, sweep issues that may arise, and drafting.”


For a detailed discussion of these developments, read Issue 50 of our IFRS Newsletter: Insurance

Measurement model comparisons

The Board analysed the similarities and differences between the general measurement model and the variable fee approach, and concluded that there was no need to bring the models closer together. It therefore decided not to amend either model.

Discretionary cash flow

For participating contracts under the general measurement model that include discretionary cash flows to policyholders, the Board considered how to treat changes in expectations of those discretionary cash flows. The Board disagreed with the staff’s recommendations and directed them to conduct additional research.

Variable fee approach

The Board agreed that an existing permission to measure some assets underlying unit-linked contracts at fair value through profit or loss (FVTPL) would be extended to direct participating contracts.

Expected timeline

Having now completed most of its technical redeliberations, the Board will further discuss the treatment of discretion in participating contracts, as well as the due process steps, at an upcoming meeting. The effective date will be discussed when the publication date is more certain.

Visit our IFRS – Insurance hot topics page for the latest developments in the insurance contracts project.

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