Is IFRS 4 still applicable?

Is IFRS 4 still applicable?

IFRS 4 was issued in March 2004 and applies to annual periods beginning on or after 1 January 2005. IFRS 4 will be replaced by IFRS 17 as of 1 January 2023.

Which contracts fall within the scope of IFRS 4?

IFRS 4 applies to all insurance contracts (including reinsurance contracts) that an entity issues and to reinsurance contracts that it holds, except for specified contracts covered by other Standards.

What is the difference between IFRS 4 and IFRS 17?

IFRS 17 replaces IFRS 4, which currently permits a wide variety of practices. IFRS 17 will fundamentally change the accounting by all entities that issue insurance contracts and investment contracts with discretionary participation features.

What is the objective of IFRS 4?

IFRS 4 is applicable for annual reporting periods commencing on or after 1 January 2005. The objective of IFRS 4 is to specify the financial reporting for insurance contracts by any entity that issues such contracts (described in IFRS 4 as an insurer).

Which IFRS discusss the five step model?

IFRS 15
IFRS 15 sets out a process for determining revenue called the five-step model. The five steps are: Identify the contract(s) with the customer.

Why is IFRS 17 needed?

The aim of IFRS 17 is to standardise insurance accounting globally to improve comparability and increase transparency, and to provide users of accounts with the information they need to meaningfully understand the insurer’s financial position, performance and risk exposure.

Why does IFRS 17 replace IFRS 4?

IFRS 17 replaces IFRS 4 Insurance Contracts. When introduced in 2004, IFRS 4—an interim Standard—was meant to limit changes to existing insurance accounting practices. Hence, IFRS 4 has allowed insurers to use different accounting policies to measure similar insurance contracts they write in different countries.

What are the 5 steps of revenue recognition?

The FASB has provided a five step process for recognizing revenue from contracts with customers:

• Step 1 – Identify the Contract.
• Step 2 – Identify Performance Obligations.
• Step 3 – Determine the Transaction Price.
• Step 4 – Allocate the Transaction Price.
• Step 5 – Recognize Revenue.

When does IFRS 4 apply to insurance contracts?

IFRS 4 applies to virtually all insurance contracts (including reinsurance contracts) that an entity issues and to reinsurance contracts that it holds.

How are insurance liabilities accounted for in IFRS?

Re­mea­sur­ing insurance li­a­bil­i­ties. The IFRS permits the in­tro­duc­tion of an accounting policy that involves re­mea­sur­ing des­ig­nated insurance li­a­bil­i­ties con­sis­tently in each period to reflect current market interest rates (and, if the insurer so elects, other current estimates and as­sump­tions).

When does the exemption for IFRS 4 expire?

On 25 June 2020, the IASB issued Extension of the Temporary Exemption from Applying IFRS 9 (Amend­ments to IFRS 4) thereby deferring the fixed expiry date for the temporary exemption in IFRS 4 from applying IFRS 9 to 1 January 2023.

Where can I find the International Financial Reporting Standard?

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