Exposure Draft and Comment letters
On 20 June 2013, the International Accounting Standards Board (IASB) published for public comment a revised Exposure Draft of proposals for the accounting for Insurance Contracts. The Exposure Draft builds upon proposals published in 2010, and reflects feedback received during the extensive public consultation period that followed the publication of those proposals.
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. While the model presented in the 2010 Exposure Draft was broadly supported, some specific issues were raised that the IASB has sought to address. The revised proposals respond to those issues by introducing enhancements to the presentation and measurement of insurance contracts while seeking to minimise artificial accounting volatility.
When the IASB began its work in 2001, there was no Standard on Insurance Contracts in the International Accounting Standards (IAS). In preparation for the adoption of International Financial Reporting Standards (IFRS) by the European Union and others in 2005, the IASB introduced an interim standard (IFRS 4) until a more comprehensive review of the accounting for insurance contracts could be completed. The first phase of that comprehensive review began in 2007 with the publication of a Discussion Paper followed by an Exposure Draft that was published for public comment in 2010.
The revised Exposure Draft sets out in full the proposals for the accounting for insurance contracts. However, respondents are asked for comments on the key areas that the IASB has changed as a result of the responses it received to the 2010 Exposure Draft.
Comment letter deadline
The comment period was open until 25 October 2013. The comment period is now closed.
Please note: when submitting a comment letter or when communicating with the IFRS Foundation, the IASB or any of its constituent bodies, you acknowledge and accept the IFRS Foundation Written Communication policy which details how we use and process your data.
View the Comment letters.
Corrections posted 23 July 2013
There were errors in the Exposure Draft Insurance Contracts (ED/2013/7) that have been summarised in this Error Note. The online PDF copies have been republished, but the hardcopy version does not incorporate these corrections.
We apologise for any confusion that might have arisen.