Unlocking IFRS 17: FRC review reveals insights
The UK’s Financial Reporting Council (FRC) recently shared its insights into companies’ initial application of IFRS 17, which marked a shift in insurance contract accounting. The thematic review assesses interim financial statements from ten companies, offering a nuanced view of their IFRS 17 disclosures.
In a deep dive, the FRC acknowledges positive strides but highlights areas for refinement. Notably, while IFRS 17 brings a welcome consistency, the quality of disclosures varies, especially in crucial aspects like transition methods. The call is for companies to deliver both quantitative and qualitative details, ensuring a comprehensive grasp of how insurance contracts are presented.
Specifically, the FRC emphasises the need for bespoke accounting policies, steering away from boilerplate language. The review encourages transparent distinctions between key judgements and major uncertainties, advocating for entity-specific disclosures. The FRC concludes by urging companies to lay bare the impacts of transitioning to IFRS 17, enhancing the industry’s overall transparency. A timely piece, given the global adoption of IFRS 17.
Explore the full FRC review here.
