Cia annual meeting assembl e annuelle de l ica
This presentation is the property of its rightful owner.
Sponsored Links
1 / 13

CIA Annual Meeting Assemblée annuelle de l’ICA PowerPoint PPT Presentation


  • 85 Views
  • Uploaded on
  • Presentation posted in: General

CIA Annual Meeting Assemblée annuelle de l’ICA. June 29 & 30, 2006 Ÿ Les 29 et 30 juin 2006 Ottawa, Ontario. CIA Annual Meeting Ÿ Assemblée annuelle de l’ICA. CIA Responses to IAA Papers. IASB – International Accounting Standards Board Goal to develop global accounting framework

Download Presentation

CIA Annual Meeting Assemblée annuelle de l’ICA

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Cia annual meeting assembl e annuelle de l ica

CIA Annual MeetingAssemblée annuelle de l’ICA

June 29 & 30, 2006 Ÿ Les 29 et 30 juin 2006

Ottawa, Ontario


Cia responses to iaa papers

CIA Annual Meeting ŸAssemblée annuelle de l’ICA

CIA Responses to IAA Papers


Iasb iaa

IASB – International Accounting Standards Board

Goal to develop global accounting framework

Publishes International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS)

IAA – International Actuarial Association

TF on International Insurance Accounting

chaired by Sam Gutterman

Subcommittee on Actuarial Standards

Prepares actuarial guidance for application of IAS/IFRS

CIA Annual Meeting ŸAssemblée annuelle de l’ICA

IASB/IAA


Ifrs ias for insurance

IFRS/IAS for contracts written by insurers

IFRS 4 – Insurance Contracts

Material insurance risk (e.g., term insurance)

Phase 1 only

IAS 32&39 – Financial Instruments

Investment contracts (e.g., certain annuities)

IAS 18 – Service Contracts

Neither of above (e.g., group ASO)

CIA Annual Meeting ŸAssemblée annuelle de l’ICA

IFRS/IAS for “Insurance”


Ifrs ias for insurance1

Other relevant IFRS/IAS include:

IAS 19 – Employee Benefits

IAS 37 – Provisions, Contingent Liabilities and Contingent Assets

IFRS 3 – Business combinations

IFRS 7 – Financial Instruments: Disclosures

CIA Annual Meeting ŸAssemblée annuelle de l’ICA

IFRS/IAS for “Insurance”


Iaa insurance standards 3 sets of papers

1st set – CIA response January 2005

Actuarial practice

General guidance

Measurement of investment contracts and service contracts

Under IAS 39 and IAS 18

Current estimates

Choosing assumptions

CIA Annual Meeting ŸAssemblée annuelle de l’ICA

IAA Insurance Standards – 3 sets of papers


Iaa insurance standards 3 sets of papers1

2nd set – CIA response March 2005

Contract classification

IFRS 4, IAS 39, or IAS 18

Changes in accounting policy

Discretionary participation features

Liability adequacy testing

CIA Annual Meeting ŸAssemblée annuelle de l’ICA

IAA Insurance Standards – 3 sets of papers


Cia annual meeting assembl e annuelle de l ica

3rd set – CIA response March 2006

Embedded derivatives and derivatives

Business combinations

Disclosure

Reinsurance

CIA Annual Meeting ŸAssemblée annuelle de l’ICA

IAA Insurance Standards – 3 sets of papers


Iaa insurance standards 3 rd set

CIA response to 3rd set of IAA papers was less supportive than for previous papers

Key concern is that the IAA guidance is not really “actuarial” in nature

Expansion of accounting guidance should come from IASB not IAA

IAA only has jurisdiction over actuaries, who may not be responsible for financial reporting

Could lead to divergent practices

However, better the IAA publish helpful guidance than not have it published at all

CIA Annual Meeting ŸAssemblée annuelle de l’ICA

IAA Insurance Standards – 3rd set


Embedded derivatives and derivatives

Paper is too complex for educational guidance

Does more harm than good in efforts to interpret related accounting guidance

Should not be released until extensive revisions have been made

CIA Annual Meeting ŸAssemblée annuelle de l’ICA

Embedded Derivatives and Derivatives


Business combinations

Adds little to IFRS 3

Could do without it

IFRS 3 is sufficiently clear

CIA Annual Meeting ŸAssemblée annuelle de l’ICA

Business Combinations


Reinsurance

Guidance is helpful, however,it should be directed to those responsible for financial reporting and not just actuaries

Some concerns about the content, but primarily relate to content of underlying IFRS

Large range of practice allowed for ceded reinsurance asset

CIA Annual Meeting ŸAssemblée annuelle de l’ICA

Reinsurance


Disclosure

Guidance is helpful, however,it should be directed to those responsible for financial reporting and not just actuaries

This paper should never become “binding”

Hundreds of examples of types of disclosure that would be considered

Recommend easing of disclosure requirements for smaller companies that aren’t publicly traded, esp. those that operate in only one country

CIA Annual Meeting ŸAssemblée annuelle de l’ICA

Disclosure


  • Login