The impact of accounting changes on regulation
The current IFRS 4 insurance contracts enable only limited comparability between peers within the insurance industry because it allows insurance contract liabilities to be measured in accordance with accounting policies grandfathered from local accounting regimes. Nonuniform accounting policies may be used in consolidated IFRS financial statements if this was permitted under the group’s previous accounting policies, such as in financial statements prepared in accordance with European Union (EU) directives.
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