OIC, the National Standard Setters ANC, ASCG, FRC and EFRAG invite companies to participate in field-testing the proposed new accounting for insurance contracts

On 20 June 2013, the IASB issued the revised Exposure Draft Insurance Contracts (ED) containing proposals on the recognition, measurement, presentation and disclosure of insurance contracts. OIC, National Standard Setters and EFRAG are performing a field-test in order to evaluate how these proposals would affect European companies applying IFRS. This field-test is carried out by OIC with the National Standard Setters ANC, ASCG, FRC and the EFRAG in coordination with the IASB staff. Additionally, Insurance Europe has agreed to encourage their members to participate.

What is the objective of this field-test?

The field-test aims to obtain evidence on how the proposals would be implemented in practice, what their impact would be and the costs and benefits associated with introducing them. In addition, the field-test also aims to assess the understandability and usefulness of the information, including the proposed disclosures that will result from applying the requirements.

When and how will this field-test be conducted?

This field-test will start on 10 July 2013 and completed questionnaires should be returned by 11 October 2013.

OIC, National Standard Setters and EFRAG have developed a questionnaire which participants are requested to complete. The questionnaire asks participants to apply the ED to portfolios of insurance contracts selected and extend the field-test to the financial instruments and non-financial assets related to the portfolios being tested, if any. Additionally, follow-up interviews may be conducted by OIC and EFRAG.

The information provided to OIC, the National Standard Setters and EFRAG will remain confidential. Information used in any reports will be presented in such a way that no individual company or person can be identified. However, the list of participants in the field-test will be made public, unless participants explicitly request anonymity. The output of the field-test will be shared between OIC, the National Standard Setters, EFRAG, the European Commission and the IASB

EFRAG and the National Standard Setters are coordinating their field test with the IASB staff. European workshops will be held in Brussels in which the IASB staff will participate. These will be held in October 2013. Participation in the workshops is limited to respondents to the questionnaire.

Would you like to participate?

OIC, the National Standard Setters and EFRAG encourage all entities that believe they are significantly impacted by the proposals to participate in the field-test.

If you would like to participate in the field-test, please contact Roberta Luly, by telephone 06.6976681 or to the e-mail address rluly@fondazioneoic.it