The Australian Securities and Investments Commission (ASIC) is urging the insurance industry to respond to Accounting Standard AASB 17 Insurance Contracts (AASB 17), effective for reporting periods beginning on January 01, 2023.
ASIC confirmed that insurers are required to disclose the impacts of the new standard in their December 31, 2020 financial reports.
Crucial matters that must be considered as part of any implementation plans include: identifying changes to accounting treatments, required system changes, business impacts, impacts on compliance with financial requirements, disclosures required in financial reports before the effective dates of the standards, possible continuous disclosure obligations, and the impact on any fundraising or other transaction documents.
ASIC advised insurers to determine the extent of any impact of the Accounting Standard AASB 17 Insurance Contracts (AASB 17) as it can significantly affect the reported financial results of many insurers.
“Directors and management of insurers need to plan for the new standard and inform investors and other financial report users of the impact on reported results,” said ASIC Commissioner Cathie Armour.