Among the different approaches while transitioning to IFRS 17 how to choose the most appropriate one?
IFRS 17 Transition: overview, challenges and experts’ tips
IFRS 17 Insurance Contracts was issued by the IASB in May 2017 and applies to periods beginning on or after January 1, 2023.
At the time of publication, that implementation date may seem far away for so many insurance companies – but now, as they begin to embark in earnest on the journey, they discovered more and more the huge amount of work to do and the lack of time.
So, if you haven’t started your IFRS 17 transition project yet, let’s see why you should do it asap!
Our experts took part in a filmed Q&A session to outline the technical impacts of IFRS 17, the different approaches and give the recommended actions for insurers to have a smooth migration to IFRS 17.
What you will learn
As an insurer, do you want to learn what approach to choose to lead the transition between the current accounting standard to IFRS 17 and what are the requirements for proper implementation?
Based on our experts’ expertise and customers feedback during their IFRS 17 implementation project, you will learn our key findings on how to choose the most appropriate approach.
In this video, our experts are presenting:
- The differences between the following methods: Full Retrospective approach, Modified Retrospective approach and Fair Value Retrospective Approach.
- How to choose the most appropriate approach and avoid pitfalls.
- Transition requirements based on our customers’ feedback.
- Key findings and recommendations insurers can act on now and tackle transition challenges.
If you want to know more about the IFRS 17 transition, watch the full Experts Talk video!
How can insurers prepare for their transition to IFRS17?
Our expert, Harry Nikolau, explained that IFRS 17, like any new standard, needs to be applied retrospectively. So, for that purpose, insurers need to calculate opening balances of the transition date which is one year earlier of the application date.
Based on the clients’ testimonials, the major challenge identified in their IFRS 17 implementation project, especially in the transition phase, is to find skilled people within the company for data interpretation, limitation, and methodology preparation, who can understand the calculations and the results and prepare the opening balances.
It is important to start earlier as possible to define the right approach, build the opening IFRS 17 balance sheet, take the time to analyze and understand the drivers of results and have sufficient time to test updated processes and controls.
I cannot stress enough how important it is for clients to involve and engage as early as possible in the process and leverage on their new systems and calculations that they have prepared for IFRS 17. This will also speed up the transition calculations.
This content was prepared by our experts:
Harry NIKOLAOU
Head of Accounting IFRS 17
Addactis
Kevin POULARD
Head of Actuarial R&D
Addactis
Related content
To go further on, we suggest some of our top resources and latest experts’ sharings on IFRS 17:
Addactis® IFRS 17 solution in video
Do you want to learn more about IFRS 17 technical challenges and the main drivers for your IFRS 17 compliance journey towards a stress-free solution? Watch our video to find out how Addactis experts can support you and help you with your IFRS 17 project. Watch now >
How you will crash your IFRS 17 project
You are moving from being an expert to an adventurer, becoming a pioneer of the new standard. What are the pitfalls that await you? Read our paper and start your IFRS 17 journey!
How to reconcile between Solvency II and IFRS 17 key figures
Read our article to find out the differences between Solvency II and IFRS 17 and how insurers can increase consistency and synergies between both regulatory regimes.