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FEATURE: IASB proposes accounting overhaul

17 August 2010

The overhaul of accounting standard proposed in the IASB’s recent exposure draft would be a pain for insurers to comply with. But the benefits outweigh the inconvenience.

Read more: iasb International Accounting Standards Board Keefe Bruyette & Woods IFRS 4 Financial Accounting Standards Board ernst & young deloitte PricewaterhouseCoopers

Insurance consultants and accountants must have thought Christmas had come early for them when the International Accounting Standards Board (IASB) finally issued its exposure draft on insurance accounting at the end of July.

Embattled and cost conscious European insurance company chief financial officers have plenty on their plate as they try to work out how to respond to the fifth quantitative impact study on Solvency II and how the heck they are going to comply with the solvency framework by 2012. Observers say the proposals would require a complete overhaul for insurers.

The IASB’s plan is to introduce a very different accounting system worldwide through the publication of the draft in mid-2011 following a consultation period that ends November 30. The system will probably be implemented by 2013.

Finance department leaders in Europe’s insurance companies in particular therefore have plenty of number crunching ahead of them and will need...


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