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.
Improvements to cashflow statements are being targeted in a consultation launched by the Financial Reporting Council (FRC)
Dr Richard Willis provides a several thousand-year history lesson of the profession, from origin to modern-day
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Long-serving PwC director Fiona Westwood has moved to Smith & Williamson and stepped up to partner