FG inaugurates working group to drive IFRS 17
The federal government, through the National Insurance Commission (NAICOM), has inaugurated the Insurance Industry Financial Reporting Working Group (IIFRWG) that would drive steadying adoption of International Financial Reporting Standards (IFRS) 17, in Nigeria, by 2022.
The Acting Commissioner for Insurance, Sunday Thomas, at the inauguration in Lagos, informed the group made up of NAICOM staff, underwriters and experts from KPMG, said their assignment is to support the Commission in providing technical advice on the adoption of IFRS 17 Insurance Contract and IFRS interpretations on insurance-specific matters and their application within Nigeria.
He said the Working Group will provide specialised knowledge to increase understanding of insurance specific issues and technical assessment of proposals by advising and supporting the Commission/industry in the following areas: Identification of interpretation and implementation issues on insurance matters, and consider implementation questions raised by operators.
To assist in the preparation and execution of activities that will facilitate the implementation of the adoption of IFRS 17; monitor changes to IFRS 17 and final pronouncements as may be issued by the IASB, and advice on implications within the Nigerian market.
Others are: Consider and make recommendations to the IASB on the need (if any) to amend the IFRS 17 Standard; suggest ways in which technical, operational, technological, accounting and actuarial matters arising from the adoption of IFRS 17 can be resolved.
They are also to develop non-mandatory guidance for implementation of the IFRS 17; advice on changes to the relevant Prudential Guidelines or Guidance documents issued by the Commission in conformity with the adoption of IFRS 17; and consider any other financial reporting issues that may arise while executing the mandates of the Working Group.
Thomas noted that in May 2017, the International Accounting Standard Board (IASB) issued the (IFRS 17) Insurance Contract, adding that this standard will replace the present IFRS 4 on accounting for insurance contracts by January 01, 2022.
He said beginning from January 01, 2022, all insurance and reinsurance contracts must be reported in accordance with IFRS 17, stressing that the IFRS 17 Insurance contracts establish the principles for the recognition, measurement, presentation and disclosure of contracts within the scope of the Standard.