…the accounting principles for financial instruments, already had a profound impact on many companies. On January 1 2023, IFRS 17, the reporting standards for insurance contracts, will also become obligatory for listed insurance companies in the EU. Many insurance companies have decided to adopt IFRS 9 simultaneously with IFRS 17 to avoid accounting mismatches on their balance sheet. This means that on January 1 2023 the accounting standards for both the assets and liabilities of listed insurance companies in the EU will change. In this article we summarize these changes and the impact on strategic asset allocation and specific investment structures, like investment funds, segregated mandates or special purpose vehicles (SPVs).
IFRS are a comprehensive set of accounting principles governed by the IFRS Foundation and the International Accounting Standards Board (IASB). IFRS was applied in Europe on January 1, 2005, to provide uniform accounting standards for publicly listed companies. Following the lead of the European Union, IFRS has since been adopted by many other countries as well, see Figure 1.
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- Figuur 1 - IFRS .jpg • 0,03 MB
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- Investment implications of IFRS 9 and IFRS 17 for insurance companies .pdf • 0,08 MB
