IFRS 17 - Insurance Contracts
Financial Dictionary — IFRS & IAS Standards
Definition
IFRS 17 establishes a comprehensive model for measuring insurance contract liabilities based on future cash flows, discounting, and risk adjustment. It increases comparability and transparency in insurance reporting.
Detailed Explanation
IFRS 17 establishes a comprehensive model for measuring insurance contract obligations using future cash flows, discounting, and risk adjustment, improving comparability in insurance reporting.
Common Uses
- Used when applying IFRS/IAS requirements for recognition, measurement, presentation, or disclosure.
- Used to justify accounting treatments in working papers and financial statement notes.
- Used to justify accounting treatments in working papers and financial statement notes.
Practical Example
- Example: When preparing year-end reporting, management applies **IFRS 17 - Insurance Contracts** to determine the correct IFRS treatment and disclosures.
Why This Term Matters
- Why it matters: Ensures compliance with IFRS, improves comparability across periods and entities, and reduces financial reporting risk.