Contents
- Access the standard
- Summary
- Recent amendments
- UK reduced disclosures – FRS 101
- ICAEW factsheets and guides
- eBooks
- Other resources
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Access the standard
IFRS 4 is not included in the 2023 Issued Standards because the replacement standard, IFRS 17, is included instead.
Summary
IFRS 4 applies to virtually all insurance and reinsurance contracts that an entity issues and to reinsurance contracts that it holds. An insurance contract is a contract under which the insurer accepts significant risk from the policyholder by agreeing to compensate them if a specified uncertain future event adversely affects the policyholder.
The IFRS:
- prohibits provisions for possible claims under contracts not in existence at the reporting date;
- requires a test for the adequacy of recognised insurance liabilities;
- requires an impairment test for reinsurance assets;
- requires an insurer to keep insurance liabilities in its statement of financial position (balance sheet) until they are discharged, cancelled or expire;
- prohibits the offsetting of insurance liabilities against related reinsurance assets.
The IFRS also prohibits the introduction of the following practices although allows their continued use where used previously:
- measuring insurance liabilities on an undiscounted basis;
- measuring contractual rights to future investment management fees at an amount that exceeds their fair value;
- using non-uniform accounting policies for the insurance liabilities of subsidiaries.
A timeline of updates to IFRS 4, from its initial publication on 31 March 2004 to withdrawal of the standard on 1 January 2023, is available on the archived version of this page.
Recent amendments
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UK reduced disclosures – FRS 101
UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Our FRS 101 pagegives more information on which entities qualify and the criteria to be met.
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These resources are available exclusively to Corporate Reporting Faculty subscribers, ICAEW members and students.
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ICAEW factsheets and guides
The Corporate Reporting Faculty's annual IFRS factsheetsprovide a more detailed discussion of recent IFRS amendments.
Exclusive 2021 IFRS Accounts
- Helpsheets and support
- 13 Aug 2022
- PDF (591kb)
This factsheet highlights new and modified requirements for preparers of IFRS accounts for accounting periods beginning on or after 1 January 2021, as well as the implications of COVID-19, Brexit and climate change.
eBooks
The ICAEW Library & Information Service provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact library@icaew.com.
Exclusive Accounting for insurance contracts
- eBook chapter
- 2023
- PKF International Ltd
- Wiley Interpretation and Application of IFRS Standards
Updated edition providing a detailed reference guide with practical examples, and IFRIC interpretations and directions. This chapter discusses IFRS 17.
Exclusive Insurance contracts (IFRS 4)
- eBook chapter
- 2021
- Ernst & Young LLP
- International GAAP - Generally Accepted Accounting Practice under International Financial Reporting Standards
A global perspective on technical accounting issues with worked examples and illustrations from published financial reports of major listed companies from around the world. This chapter discusses IFRS 4.
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Other resources
- Website
Overviews of each international accounting standard, with a history and timeline of key events and amendments.
IFRS model accounts and disclosure checklists
- Listing
A list of regularly updated free sources for IFRS model accounts and disclosure checklists.
International GAAP 2023: The global perspective on IFRS
- Website
Detailed guide on interpreting and implementing IFRS, with illustrative examples and extracts from financial statements. The manual is available online (free registration required) as part of EY Atlas Client Edition.
Corporate reporting resources
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