The IASB has issued on June 20, 2013 a revised exposure draft (ED) on insurance contracts. The revised proposals aim to provide a consistent basis for accounting for insurance contracts and to make it easier for users of financial statements to understand how insurance contracts affect an entity’s financial position, financial performance and cash flows. They also respond to issues raised on the 2010 exposure draft by introducing enhancements to the presentation and measurement of insurance contracts while seeking to minimise artificial accounting volatility. Comments are due by 25 October 2013.
While this is not a joint project, the IASB and FASB have been working together in their deliberations. However, the EDs will have a number of differences. The FASB expects to publish its comprehensive ED on insurance contracts in the near future.
Click here or contact us to learn more about this project and the 2013 proposals. A recording of PwC's Global webcast on the revised Insurance Contracts Exposure Draft will also be available July 4, 2013.