Insurers back international standard extension

THE ASSOCIATION of British Insurers has come out in support of extending the deadline for International Financial Reporting Standards convergence.

One of the outstanding accounting standards relates to insurance contracts, and the organisation said “the extra time will help address the remaining issues fully”, insisting: “It is essential that the new standard is of a high quality.”

The International Accounting Standards Board recently announced it is abandoning the June deadline for completion of three of the most contentious projects, including accounting for financial instruments, leasing and revenue recognition.

Describing progress as “substantial”, the International Accounting Standards Board pointed to the most recent G20 statement on accounting standards, which called for the process to be completed before the end of 2011 – rather than an earlier target of June.

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Fiona Westwood of Smith and Williamson.