FRC welcomes the publication by the IASB of its revised Exposure Draft on insurance contract accounting
News types: Response
Published: 20 June 2013
The FRC welcomes the publication by the IASB of its revised Exposure Draft (ED) containing proposals on measurement and presentation of insurance contracts. Following feedback on the IASB’s earlier proposals in 2010, the FRC is pleased to see specific proposals included on:
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the approach to the adjustment of unearned profits reflecting the inherent uncertainty in calculating the best estimate of the settlement cash flows;
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the presentation of information related to insurance contract revenue and the effects of changes in insurance liability due to discount rates giving users vital information about the business undertaken during the period and the effect of market movements; and
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transitional arrangements on first application of the standard that recognise the long term nature of certain insurance contracts and allow appropriate recognition of future profits on such contracts.
FRC will comment on the ED in line with the IASB’s timetable by 25 October 2013, taking account of advice from its Accounting Council and other stakeholders.
Notes to editors:
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The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.
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Those interested in participating in FRC events to discuss the Exposure Draft are invited to contact Seema Jamil-O’Neill on [email protected].