International standard setters examine insurance
Unbundling insurance contracts discussed at recent IASB meeting
Unbundling insurance contracts discussed at recent IASB meeting
INSURANCE CONTRACTS were up for debate at the International Accounting Standards Board this week.
The focus was on goods, services and investment components, with the board discussing whether these should be unbundled from insurance contracts.
The starting point for discussions was the revenue recognition project, which stipulates that separate performance obligations should be identified.
On this basis, an entity should only account for a bundle of goods or services as a single performance obligation if it is provided to the customer as a unified offering, i.e. transferred in the same way, with the same function and not sold separately.
The IASB board “tentatively” concluded that insurers should unbundle explicit account balances when they are credited with an explicit return that is based on the account balance.
The organisation suggested that the unbundling should be carried out using the criteria being developed in the revenue recognition project, and said implicit account balances would not need unbundling.
Further discussions on the project will take place at a joint meeting on 11 May.
More about:
In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...
View resourceIn recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...
View resourceIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceThe first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...
View resourceThe incoming IFRS 17 insurance accounting standard is an “opportunity” for accountants to highlight their value to their companies, according to Moody...
View articleTrimble Real Estate & Workplace Solutions report on what has been learned so far on the road to FASB/IASB lease accounting compliance Read More...
View articleCraig Gillespie, business area director, Trimble Real Estate & Workplace Solutions, helps you navigate the latest changes Read More...
View articleCraig Gillespie, Business Area Director for Real Estate at Trimble details the implications of the new rules Read More...
View articleThe International Accounting Standards Board announces new regulations that create an international Standard for insurance contracts Read More...
View articleThe International Accounting Standards Board (IASB) have announced that Françoise Flores will join 1 January 2017 Read More...
View articleBoard members of accounting standard setter the IASB have come under fire for the size of their remuneration packages amid scrutiny of how the organis...
View articleThe IASB has issued amendments to its existing insurance contracts accounting standard, IFRS 4 Read More...
View article