Agusto & Co kenya

𝗜𝗙𝗥𝗦 𝟭𝟳 -𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗖𝗼𝗻𝘁𝗿𝗮𝗰𝘁𝘀: 𝗔𝗿𝗲 𝗞𝗲𝗻𝘆𝗮𝗻 𝗜𝗻𝘀𝘂𝗿𝗲𝗿𝘀 𝗿𝗲𝘀𝗽𝗼𝗻𝗱𝗶𝗻𝗴 𝗽𝗼𝘀𝗶𝘁𝗶𝘃𝗲𝗹𝘆 𝗼𝗿 𝗻𝗲𝗴𝗮𝘁𝗶𝘃𝗲𝗹𝘆 @agustoncokenya In March 2004, the International Accounting Standards Board (IASB) introduced the International Financial Reporting Standard (IFRS) 4 – Insurance Contracts, as an interim standard, allowing insurers to apply varying national accounting practices. While this flexibility accommodated different markets, it led to inconsistencies in financial reporting, making it difficult to compare insurers’ financial health globally. To address this deficiency, the IASB issued IFRS 17 – Insurance Contracts in May 2017, effective on 1 January 2023, introducing a standardised approach to recognising, measuring, and presenting insurance contracts. IFRS 17 enhances comparability, transparency, and financial reporting quality. Unlike the earlier version, IFRS 17 standardises liability measurement using risk-adjusted present values of future cash flows and a contractual service margin (CSM) to defer unearned profits. The standard also separates insurance service results from investment components, offering a clearer view of insurers’ financial positions. In addition, IFRS 17 provides insurers with an option on how to recognise insurance finance income or expenses, promoting consistency in financial reporting while accommodating different business models. Click the link to continue reading -agusto.co.ke/event/publicat…