• Register
Return to: Home > News > Regulation > UK FRC adds to insurance accounting review

UK FRC adds to insurance accounting review

The UK Financial Reporting Council (FRC) has issued an update of the UK accounting standard for insurance contracts, FRS 103, which differs from the current proposals of the International Accounting Standards Board (IASB).

Draft FRS 103 is based both on the current IFRS 4 and other UK provisions, which allows UK entities that do not apply IFRS to continue with their existing accounting policies in the interim, FRC told The Accountant.

Draft FRS 103 applies to life and general insurers and to unlisted entities that have insurance contracts. Some aspects of Draft FRS 103 would also apply to other entities that are not regulated insurance businesses in so far as they have insurance contracts in place.

In light of the forthcoming several regulatory developments in the insurance industry, the FRC aims at minimising the impact of accounting changes "in quick succession" for UK insurers, the regulator said.

Once the IASB has finalised its current proposals, FRC will consider whether to update UK GAAP further so that IASB proposals can be adopted in UK GAAP, the regulator said. FRC added that any proposed change as a result will be subject to consultation.

In the meantime FRC said it will be contributing to the IASB consultation on the subject and holding an outreach event on 2 October.

Related article
News analysis: Insurance contract accounting revisited

Related link
UK Financial Reporting Council

Top Content

    Choosing the right location can have cast-iron benefits

    As Game of Thrones, one of the biggest television shows of all time, comes to an end, Joe Pickard looks at how tax incentives offered to television and film production companies help the wider economy.

    read more

    Primary financial statements: a game changer in reporting?

    International Accounting Standards Board chair Hans Hoogervorst delivered a speech at the Seminario International sobre NIIF y NIF, organised by the Consejo Mexicano de Normas de Información Financiera in Mexico. The Accountant presents the highlights.

    read more

    FASB readies standards for the netflix generation

    The US Financial Accounting Standards Board (FASB) has updated its accounting standard for entertainment, with a specific eye on keeping up to date with how episodic content, such as television programmes, is consumed in the modern world. Jonathan Minter reports.

    read more

    Brexit: why it takes two to tango

    Former TA editor Vincent Huck, now editor of Insurance Asset Risk, looks at why Brexit might unleash geopolitical intrigue in Europe’s accounting standard-setting scene – and why IFRS 17 will be an incredible source of opportunity for firms in the coming years.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.