Course Objectives

This two-day course will focus on accounting for insurance contracts as per IFRS 17. Currently, there are different accounting practices for similar insurance contracts. There have been substantial efforts put into the development of IFRS 17 to ensure that insurers reflect the effect of economic changes in their financial statements in a timely and transparent way. This will provide improved information about the current and future profitability of insurers, improve global comparability of financial statements and enhance the quality of financial information. Participants are expected to have a basic understanding of financial statements. Key Learning Outcomes:

Understand the changes in IFRS 17 from the current IFRS 4 Insurance Contracts

IFRS 17 Insurance ContractsIFRS® Standards Effects Analysis

Appreciate the accounting methodology prescribed in IFRS 17 and evaluate its impact on the financial statements

Applying IFRS 17A closer look at the new Insurance Contracts Standard May 2018

Understand the transition requirements in IFRS 17

Transitioning to IFRS 17 Applying IFRS 17's transition requirements

Analyze the presentation and disclosure requirements in the financial statements

Applying IFRS Presentation anddisclosure requirementsof IFRS 15(Updated July 2018)

IAS 1 — Presentation of Financial Statements

Understand the requirements for transition to IFRS 9 Financial Instruments for insurance companies

Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts(Amendments to IFRS 4)

IFRS 9: Financial Instruments –high level summary

IFRS IN PRACTICE 2018IFRS 9 Financial Instruments

IFRS 9, Financial Instruments Understanding the basics

The course is designed for those who would like to gain an understanding of the requirements of IFRS 17 and its impact on the financial statements. It would be beneficial for those working in finance, risk and actuarial teams involved in implementation of IFRS 17 as well as management, analysts, legal teams and others who would like to know the impact of the standard on the financial statements.

The aim of this section is to provide a background to IFRS 17, its objectives and scope of the standard.

  Introduction to IFRS 17: Reasons for IFRS 17, scope and exclusions
  Executive summary: Overview of the standard, key terms and principles

Recognition and Measurement

The aim of this section is to appreciate the recognition and measurement approaches to insurance contracts and evaluate its impact on the financial statements.

  Insurance contracts: Assessment of significant insurance risk, level of aggregation
  

IFRS 17 Insurance Contracts and Level of Aggregation

  
  
  Separation of components: Determine whether non-insurance elements require separation
  Recognition of insurance contracts: Criteria and timing of recognition
  Measurement: Overview of the different accounting approaches 

IFRS 17 Accounting Approaches

The aim of this section is to obtain an in-depth understanding of the different measurement models and evaluate the drivers of income statement volatility and insurance liabilities. There are detailed examples and case studies to reinforce the key points for profitable and onerous contracts, reinsurance contracts and contracts with direct and discretionary participation features.

  General measurement model: Initial recognition, subsequent measurement and presentation for profitable and onerous contracts
  Modified approaches for other contracts: Initial recognition and subsequent measurement of reinsurance contracts, and contracts with direct and discretionary participation features
  Premium allocation approach: Initial recognition, subsequent measurement and presentation
  Contract modifications and derecognition of insurance contracts: Impact of modifications on financial statements, derecognition principles

The aim of this section is to explain the transition, presentation and disclosure requirements in relation to insurance contracts.

  Transition approaches: Full retrospective, modified retrospective and fair value
  Presentation: Statement of financial position, statement of financial performance
  Disclosures: Qualitative and quantitative disclosures, significant judgements and nature and extent of risks

IFRS 9 Financial Instruments

The aim of this section is to provide an overview of IFRS 9 Financial Instruments.

  IFRS 9 adoption for insurers: Overlay approach, deferral approach and transition requirements
  Classification and measurement: Classification of financial assets based on business model and nature of cash flows, redesignation of financial assets on adoption of IFRS 17, classification of financial liabilities
  Expected credit loss impairment model: General model, simplifications and practical expedients
  Hedge accounting: IFRS 9 updates
  Disclosures: Qualitative and quantitative disclosures