The LUCAS team is one of the few professional practices in Ukraine that have successful experience in implementing new IFRS 17 in insurance companies. Despite the general anxiety of market participants regarding the implementation of IFRS 17, our successful experience of integrating the standard into our clients’ accounting system shows that financial managers and accountants easily master the new rules and procedures and understand how they correspond with their businesses activities.
Therefore, we can say with confidence that IFRS 17 is a fairly clear and logically structured standard that helps make financial reporting more transparent, detailed and consistent.
IFRS 17 “Insurance Contracts” is mandatory for insurance market participants starting from January 1, 2023.
IFRS 17 combines the current measurement of future cash flows with the recognition of revenue over the period of service under a contract. The standard presents the results of insurance services (including the presentation of insurance income) separately from insurance financial income or expenses, and requires the enterprise to make a choice regarding the accounting policy – whether to recognize all insurance financial income or expenses in profit or to include a part of these incomes or expenses in other comprehensive income.
If IFRS 17 is still not fully transparent and understandable for your insurance company, if you are hesitating whether to apply a general approach or a simplified one based on the distribution of premiums, call LUCAS or send your inquiry – we will be happy to help you.