26 May 2021
IFRS17: A Deep Dive Into Revenue from Insurance Contracts
IFRS 17 will become effective on 1 January 2023 and it represents a step change for all entities that are required to apply its guidance.
The changes will not be limited to the measurement of contracts – including their presentation in the balance sheet – but also substantially change how insurers present their period performance in the statement of comprehensive income.
This web session takes a closer look at the “top line” item in the profit and loss account: insurance contract revenue. Depending on the nature of the business, insurance revenue may be very similar to the starting point for net income calculation according to current accounting regimes – or it may substantially differ. In either case, companies need to prepare for substantial changes to internal and external processes: Calculation of revenue, explanations to (and by!) internal and external stakeholders, and amended key performance indicators (KPIs).
Organised by the EAA – European Actuarial Academy GmbH.
The web session is suited for all interested individuals involved in financial reporting according to IFRS, such as actuaries or specified accountants, controllers involved in valuation, controlling, auditing and consulting.
Participants are expected to have a general understanding of IFRS 17, as there will be no time to recall basic concepts of the Standard.
Technical RequirementsPlease check with your IT department if your firewall and computer settings support web session participation (the programme GoToTraining is used for this online training). Please also make sure that you are joining the web session with a stable internet connection.
Purpose and Nature
The purpose of this web session is to discuss both conceptual and practical aspects regarding revenue from Insurance Contracts. The conceptual part aims to provide participants with a solid understanding of the IFRS 17 revenue guidance in order to prepare them for relevant discussions with management, auditors, clients, analysts etc. In particular, the web session will cover:
How does the revenue concept for insurance contracts align with the general guidance in IFRS 15 Revenue From Contracts With Customers for other industries, especially non-financial businesses – and does IFRS 15 affect the presentation of insurance contracts in some kind of “non-actuarial” sense? How does revenue calculation for insurance contracts differ between the different measurement models in IFRS 17? Which constraints exist for revenue recognition and how can insurers make sure that they meet these constraints?