April 4, 2018 by BDO
IFRS 17, Insurance Contracts was published in May 2017 and is the most significant change to financial reporting for insurance companies in Canada in decades, not only in the measurement of insurance assets and liabilities, but in how insurance contracts are presented in financial statements. The new standard becomes effective on January 1, 2021.
However, the transitional provisions require restatement of comparative figures as well as a presentation of an “opening balance sheet” as of the first day of the comparative period. This significantly shortens the window of time insurers have to plan for the new standard, which will have wide-reaching implications on systems and processes to gather necessary information, as well as how users of financial statements are informed about the meaning of change to financial position and performance.
IFRS 17: Seize the opportunities. Avoid the risks.
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IFRS 17 is a complex standard and will require potentially new information or processes in order to comply. Insurers should look to this time of change as an opportunity to improve data management systems, processes, and the way the underlying business operates.
As with any transformational change, IFRS 17 brings both risks and opportunities. To address these challenges in the most effective manner, entities should avoid ‘knee-jerk’ reactions which usually result in attacking the issues with a brute force mentality. Below are the top five questions every insurer should be asking itself in preparing for the conversion to IFRS 17:
#1: What’s the impact?
#2: What do we need versus what do we want?
#3: How do we fill the “gap” in our systems, processes, and data?
#4: What choices do we have to make in the short term?
#5: Who do we need to get there?
Join us for this webinar as we explore how entities can address these questions and transition to IFRS 17 in the most effective manner possible. You will hear from experts in IFRS and IT solutions as they share best practices and project management insights for transitioning to IFRS 17.
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Are you ready for IFRS 17? Learn how to prepare for this transformational change
Presented by BDO Canada