Any proposed international accounting standard should be tested first: Insurers

Any proposed international accounting standard should be field-tested before it is applied to help make sure the standard appropriately reflects the way affected companies manage and run their businesses, The Group of North American Insurance Enterprises (GNAIE) recently told the International Accounting Standards Committee Foundation (IASCF).
IASCF is the oversight body of the International Accounting Standards Board (IASB).
At their meetings in April and October 2005, the IASB and the U.S. Financial Accounting Standards Board reaffirmed their commitment to the convergence of U.S. generally accepted accounting principles (US GAAP) and International Financial Reporting Standards (IFRSs).
“As evidenced by developments in the IASB’s efforts to formulate accounting standards for the global insurance industry, IASB’s preliminary views often include fundamental and theoretical changes from existing practices, and therefore cannot and should not be completely considered without a ‘practical application’ test period,” GNAIE board member and chief financial officer Philip Bancroft recently told the IASCF.
“We are now at a critical juncture in the development of global accounting standards for insurance contracts,” Bancroft continued, “and it is essential that the process allow for sufficient impact assessments, rather than be rushed or limited due to the urgencies of the moment in the global capital markets.”
GNAIE’s mandate is to achieve high-quality international accounting and solvency standards for insurance enterprises globally.
GNAIE’s 18 member companies are: ACE Ltd.; AIG Inc.; The Allstate Corporation; Axis Capital; Genworth Financial; The Hartford; Lincoln Financial; Manulife Financial; Metropolitan Life Insurance Company; New York Life Insurance Company; Partner Re; Principal Financial; Prudential Financial, Inc.; Renaissance Re; State Farm; Sun Life Financial; Travelers; and XL Capital Ltd.