2015-05-31-KPMG_China-国际财务报告准则_IFRS_－保险前沿动态_-_第四十五期,二零一五年五月_23页_852kb

IFRS 45-5: Insurance Frontiers (May 2015)

Key Developments

The IASB is advancing its insurance contract standards to address industry needs while maintaining consistency with other IFRS. In May 2015, an education session examined several areas, with no final decisions reached. Progress includes ongoing discussions and staff-supplied suggestions for addressing issues like variable fee method applications, contract service margin measurement, and indirect participation in dividend contracts. IFRS 9's impact on insurance contracts was also considered.

Primary Discussion Areas:

• Variable Fee Method and Mutual Insurance: Explored the effects of mutual insurance on contract accounting. Staff proposed criteria for identification and accounting treatment under simplified transition methods, but no decisions were made.
• Contract Service Margin Subsequent Measurement: Debated whether to use current interest rates or locked rates. Staff analyzed pros and cons, suggesting options like using current rates for better consistency, but no decisions were reached.
• Indirect Participation in Dividend Contracts: Defaulted to the general model but staff recommended using the fair yield method for interest expense with policyholder choices. No decisions on implementation were made.
• Interest Expense Presentation: Staff suggested allowing entities to choose between reporting interest expense in profit or other comprehensive income. Discussion focused on providing choices to reduce complexity, but no consensus.
• IFRS 9 Alignment: Considered potential conflicts with IFRS 9 financial instruments standards, including alignment on effective dates and reclassification options. Staff noted delays and impacts, but no decisions were finalized.

Overall Status

No decisions were finalized during the May session. Staff recommendations remain provisional, and further审议 will incorporate these discussions. Final standards are expected after 2015, pending resolutions.