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IASB Proposes Delaying Insurance Standard

June 27, 2019

The International Accounting Standards Board (IASB) is proposing some amendments to its insurance contracts standard, including a one-year delay in the effective date, after hearing complaints from insurers. The IASB issued International Financial Reporting Standard 17 in May 2017, to address the inadequacies for accounting for insurance contracts around the world. The IASB had initially worked on converging the international standards with the Financial Accounting Standards Board’s (FASB) standards under U.S. Generally Accepted Accounting Principles (GAAP), which have traditionally been much further developed. However, the two standard-setting boards eventually decided to go their separate ways, and FASB instead updated its standards last year only for so-called “long-duration” insurance contracts, such as for life insurance policies, disability income, long-term care and annuities. Read more at Accounting Today.