IFRS 17: Insurance Contracts

Introduction:

The IFRS 17 Financial Instruments program is designed as a specialized course to ensure that participants achieve compliance and mastery in accounting for insurance contracts under International Financial Reporting Standard 17 (IFRS 17). Participants will delve into the details of IFRS 17, address specific implementation issues, understand its impact on financial statements, and learn the strategies for successful application, particularly for professionals in the insurance sector.

Throughout the IFRS 17 Financial Instruments training, participants will gain a deep understanding of international financial reporting standards, with a focus on IFRS and specifically on financial instruments. They will explore the specifics of IFRS 17, including the requirements for various financial instruments covered by the standard and the practical challenges of implementing it. Through practice-oriented education, participants will familiarize themselves with the fundamental elements of IFRS 17, enabling them to effectively navigate and manage complex scenarios they are likely to encounter.

Objectives:

At the conclusion of this IFRS 17 Financial Instruments course, participants will be able to:

• Enhance their understanding of a wide range of concepts, principles, and requirements related to IFRS insurance contracts.
• Understand the scope and application of IFRS 17 across different categories of insurance contracts.
• Implement the measurement models and accounting treatments for insurance contracts as set out in IFRS 17.
• Identify and address the challenges and issues related to the transition to IFRS 17.
• Read and interpret financial statements prepared under IFRS 17.

Training Methodology:

• Group debates
• Financial statement tasks
• Case studies
• Focus groups
• Case study demonstrations
• Feedback sessions

Course Outline:

Unit 1: Introduction to IFRS 17

• Scope and objectives of International Financial Reporting Standard (IFRS) 17.
• Extent of coverage and application of IFRS 17 in relation to insurance policies.
• Key terminologies under IFRS 17, including contractual service margin (CSM) and risk adjustment.

Unit 2: Measurement Models under IFRS 17

• Categorization and evaluation of insurance contracts under IFRS 17.
• Identification of fulfillment cash flows and required discount rates for insurance contracts.
• Application of the general measurement model and other simplified measurement approaches.

Unit 3: Accounting Treatments under IFRS 17

• Valuation and performance indicators of insurance contracts, including presentation and disclosure under IFRS 17.
• Timeline for recognizing revenue, expenses, and profit in the context of the contract.
• Practical examples and case studies illustrating the application of IFRS 17.

Unit 4: Practical Implementation of IFRS 17

• Preparing for future implementation, meeting transition requirements, and setting the strategic direction for IFRS 17 adoption.
• Addressing critical aspects of implementation, such as data collection and organizational structure transformations, particularly in information systems.
• Managing the transition process and meeting the regulatory requirements of IFRS 17, including the integration of additional standards in the future.

Unit 5: Regulatory Compliance and Stakeholder Communication

• Analysis of factors influencing IFRS 17 reporting, including updates on related normative documents.
• Strategies for preparing internal and external reports on IFRS 17 for investors, management, regulators, and other stakeholders.
• Approaches, methods, policies, and procedures for addressing regulatory requirements in the context of IFRS 17 application.