IFRS4_06 - IFRS 4 International Financial Reporting...

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IFRS 4 © IASCF 395 International Financial Reporting Standard 4 Insurance Contracts This version includes amendments resulting from IFRSs issued up to 31 December 2005.
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IFRS 4 396 © IASCF C ONTENTS paragraphs INTRODUCTION IN1–IN13 INTERNATIONAL FINANCIAL REPORTING STANDARD 4 INSURANCE CONTRACTS OBJECTIVE 1 SCOPE 2–12 Embedded derivatives 7–9 Unbundling of deposit components 10–12 RECOGNITION AND MEASUREMENT 13–35 Temporary exemption from some other IFRSs 13–20 Liability adequacy test 15–19 Impairment of reinsurance assets 20 Changes in accounting policies 21–30 Current market interest rates 24 Continuation of existing practices 25 Prudence 26 Future investment margins 27–29 Shadow accounting 30 Insurance contracts acquired in a business combination or portfolio transfer 31–33 Discretionary participation features 34–35 Discretionary participation features in insurance contracts 34 Discretionary participation features in financial instruments 35 DISCLOSURE 36–39 Explanation of recognised amounts 36–37 Nature and extent of risks arising from insurance contracts 38–39A EFFECTIVE DATE AND TRANSITION 40–45 Disclosure 42–44 Redesignation of financial assets 45 APPENDICES A Defined terms B Definition of an insurance contract C Amendments to other IFRSs APPROVAL OF IFRS 4 BY THE BOARD APPROVAL OF AMENDMENTS TO IAS 39 AND IFRS 4 BY THE BOARD BASIS FOR CONCLUSIONS IMPLEMENTATION GUIDANCE
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IFRS 4 © IASCF 397 International Financial Reporting Standard 4 Insurance Contracts (IFRS 4) is set out in paragraphs 1–45 and Appendices A–C. All the paragraphs have equal authority. Paragraphs in bold type state the main principles. Terms defined in Appendix A are in italics the first time they appear in the Standard. Definitions of other terms are given in the Glossary for International Financial Reporting Standards. IFRS 4 should be read in the context of its objective and the Basis for Conclusions, the Preface to International Financial Reporting Standards and the Framework for the Preparation and Presentation of Financial Statements . IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance.
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IFRS 4 398 © IASCF Introduction Reasons for issuing the IFRS IN1 This is the first IFRS to deal with insurance contracts. Accounting practices for insurance contracts have been diverse, and have often differed from practices in other sectors. Because many entities will adopt IFRSs in 2005, the International Accounting Standards Board has issued this IFRS: (a) to make limited improvements to accounting for insurance contracts until the Board completes the second phase of its project on insurance contracts. (b) to require any entity issuing insurance contracts (an insurer) to disclose information about those contracts.
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