Abstract
Over the last 16 years, the International Accounting Standards Board (IASB) has worked on developing an improved, internationally recognised standard for accounting for insurance contracts. Challenges were experienced in the application of the interim standard, IFRS 4 Insurance Contracts. Amongst these challenges was the effect of risk and uncertainty and how the estimates thereof compromised comparability, and therefore the ultimate relevance, reliability and usefulness of financial reporting for insurance contracts. In May 2017, the IASB published a new insurance standard, IFRS 17 Insurance Contracts, which supersedes the previous interim standard, IFRS 4 Insurance Contracts. The new standard will become effective for reporting periods beginning 2021 and it is widely hoped that it will address the challenges previously experienced in accounting for insurance contracts. IFRS 17 Insurance Contracts has not been officially adopted by a South African company by the date of submission of this work. How companies plan to implement the standard from 2021 is being considered and planned for by those responsible for financial reporting of insurance companies in South Africa...
M.Com. (International Accounting)