The impact of Contract Boundary

The impact of Contract Boundary

IFRS 17 introduces the contract boundary concept to identify the cash flows which are relevant to measure the insurance contracts. Contract boundary distinguishes cash flows related to the existing insurance contracts from future contracts. When the insurance company...
The Impact of IFRS 17 on Balance Sheet

The Impact of IFRS 17 on Balance Sheet

IFRS 17 provides guidance on presentation of financial statements, it specifies the line items which require to present in the face of the Financial position (Balance sheet). Insurance companies currently presenting their financial position in a very detailed level...
The impact of IFRS 17 on Insurance Industry KPIs

The impact of IFRS 17 on Insurance Industry KPIs

New Insurance contracts accounting standard IFRS 17 will be effective from 1st January 2023. This will make a significant change in current accounting practice used by insurance companies. Specially, Key performance indicators (KPIs) used earlier will not be...
Contract boundary in practice – IFRS 17

Contract boundary in practice – IFRS 17

Contract boundary is the criteria to identify when the existing contract ends and a new contract begins. Cash flows within the boundary will be taken considered for the measurement as per IFRS 17. If there is no annual renewals, the contract boundary will be same as...