IASB Outreach on Insurance Contracts
On 20 August 2013, the Malaysian Accounting Standards Board (MASB) facilitated and assisted the International Accounting Standards Board (IASB) to hold an outreach event in Kuala Lumpur to explain and gather input from the insurance industry on the IASB’s revised Insurance Contracts Exposure Draft (ED) published in June 2013.
The revised ED proposals aim to provide a consistent basis on accounting for insurance contracts and to make it easier for users of financial statements to understand how insurance contracts affect an entity’s financial position, financial performance and cash flows.
A total of 148 participants attended the outreach at Sasana Kijang, Bank Negara Malaysia.
The meeting was chaired by MASB member and FRF Honarary Secretary, Ken Pushpanathan and present from the IASB was the IASB Senior Technical Manager, Joanna Yeoh. Also, present was MASB chairman, Dato' Faiz Mohammad Azmi.
The presentation covered on the following key areas of the 2013 ED:
- Adjustments for changes in cash flows relating to future insurance coverage
- Contracts that have cash flows that are expected to vary directly with returns on underlying items
- Presentation of insurance contract revenue and expenses
- Determining interest expense
- Transition proposals