The National Financial Reporting Authority, (NFRA) on April 28, 2023, issued a notification regarding proposals on new standards for accounting of insurance contracts viz. Ind AS 117.
NFRA will share its recommendations with the Ministry of Corporate Affairs, after which Ind AS 117 has to be considered and notified by the Central Government under the Companies (Indian Accounting Standards) Rules 2015. When notified, it will replace currently notified Ind AS 104, Insurance Contracts.
IFRS 17, originally issued by the International Accounting Standards Board (IASB), in May 2017, is a complete overhaul of the accounting for the Insurance Industry. It is considered a first truly international IFRS Standard for insurance contracts to help investors and other users to better understand insurers’ risk exposure, profitability and financial position. Globally, it has become effective from January 01, 2023.
IFRS 17 is specifically designed to capture the unique features of the insurance and investment contracts of the Insurance Entities. It is highly insurance products specific and would entail a paradigm shift in the measurement, presentation and disclosure requirements.
[Release ID: 1920330]
