ISAB publishes insurance financial reporting standards

The International Accounting Standards Board (ISAB) has published an international financial reporting standard for insurance, designed to harmonise insurance industry accounting practices throughout the world.

The ISAB said the standard, International Financial Reporting Standard 4 (Insurance Contracts), applies to insurance and reinsurance contracts issued by insurance companies and to the reinsurance contracts they purchase.

ISAB chairman Sir David Tweedie said: “Developing a widely respected accounting standard that addresses the many complex practical and conceptual problems in insurance accounting remains a priority for the IASB.

“Reaching a conclusion on these issues, however, will require careful consideration of all issues and viewpoints that will occupy the board for some time and could not possibly be completed by the 2005 deadline set in many jurisdictions.

“At the urging of users, insurers and regulators, we have developed IFRS 4 to provide interim guidance on insurance accounting practices without imposing on the insurance industry significant costs that could prove to be wasted when we complete the more comprehensive project”

The reporting standard can be accessed through the ISAB subscriber website at isab.org.