Disclosure For Insurance Contracts – FAQ | IFRS

Disclosure for Insurance contracts

The disclosure requirements in IFRS 17 aim to provide users of the financial statements with a basis to assess the effect that contracts within the scope of IFRS 17 have on an entity’s financial position, financial performance and cash flows. Disclosure for Insurance contracts Disclosure for Insurance contracts  Disclosure for Insurance contracts

IFRS 17 requires disclosure of qualitative and quantitative information about [IFRS 17 93]: Disclosure for Insurance contracts

The standard does not specify the level of aggregation an entity should apply when making disclosures, although it gives the following examples of aggregation bases that might be appropriate for information disclosed about insurance contracts [IFRS 17 96]:

  • Type of contract (e.g., major product lines) Disclosure for Insurance contracts
  • Geographical area (e.g., country or region) Disclosure for Insurance contracts
  • The reportable segment, as defined in IFRS 8 Operating Segments Disclosure for Insurance contracts

Considerations

The disclosure requirements of IFRS 17 are more extensive compared with those in IFRS 4. They comprise 40 paragraphs of the standard. Insurance entities have not applied many of these disclosures in the past, so complying with the disclosure requirements will be a challenge for data, systems, and processes.

Entities need to apply judgment in how, or even whether, they break down the required disclosures into separate lines of business or geographical areas. Entities may find minimum disclosure attractive when they first implement IFRS 17 because of uncertainty about the effort or even feasibility of providing separate disclosures in time for initial application in 2021.

The disclosure requirements of IFRS 17 are more extensive compared with those in IFRS 4. They comprise 40 paragraphs of the standard.

Leave a comment