Insights into PFRS 17 - Initial recognition and measurement
PFRS 17 ‘Insurance Contracts’ (PFRS 17 or the Standard) introduces a comprehensive, principles-based framework for the recognition, measurement, presentation and disclosure of insurance contracts, introducing a globally consistent approach to accounting for insurance liabilities. The standard requires entities to measure insurance contracts using current estimates of future cash flows, an explicit risk adjustment and a contractual service margin, fundamentally changing the timing and pattern of profit recognition. As a result, PFRS 17 significantly enhances transparency and comparability in financial reporting, while also necessitating substantial changes to data, systems, processes and governance frameworks across reporting entities.
The articles in our ‘Insights into PFRS 17’ series explain the key features of the Standard and provide insights into their application and impact. This article explains the initial recognition and measurement of insurance liabilities under PFRS 17.
The full publication is accessible and downloadable below:
The previous release in this series, which provide foundational discussions on earlier steps and key concepts under PFRS 17, are available below:
