The Executive Body of National Financial Reporting Authority (NFRA) held interaction with members from Life Insurance Industry yesterday to discuss the proposed changes that Ind AS 117 seeks to bring to accounting for insurance contracts. Representatives from IRDAI also participated.
About IndAS 117
- IndAS 117 is based on high quality global standard IFRS 17, Insurance Contracts issued by the International Accounting Standard Board of IFRS Foundation.
- IFRS 17 which was originally issued in May 2017 has become globally effective from 1 January 2023. It is expected to help investors and others better understand insurers’ risk exposure, profitability and financial position.
- NFRA received the ICAI proposal for IndAS 117, along with the results of public consultations carried out since 2018.
- Several Life Insurance Entities had offered their comments on the exposure drafts issued by ICAI. Ind AS 117 is specifically designed to capture the unique features of the insurance and investment contracts of the Insurance Entities and introduces a paradigm shift in the measurement, presentation and disclosures in the financial statements of the Insurance Entities.
