TITLE

A New Paradigm of Reporting on the Horizon: International Financial Reporting Standards (IFRS) and Implications for the Insurance Industry

AUTHOR(S)
Lindberg, Deborah L.; Seifert, Deborah L.
PUB. DATE
December 2010
SOURCE
Journal of Insurance Regulation;Winter2010, Vol. 29 Issue 2, p229
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The international business community is moving toward adopting International Financial Reporting Standards (IFRS). In the European Union, compliance with IFRS was required beginning in 2005 (Post, et al., 2007). In February 2010, the U.S. Securities and Exchange Commission (SEC), while calling on additional study of IFRS, indicated its continued support for the convergence of U.S. generally accepted accounting principles (GAAP) and IFRS (SEC, 2010). The potential use of IFRS for U.S. financial reporting could represent fundamental and far-reaching changes in accounting, not only for insurance contracts, but also for financial reporting by insurance companies (AICPA, 2009). For instance, the use of IFRS requires more judgment, and less reliance on detailed rules, than GAAP currently used in the United States (Deloitte, 2007). Accordingly, given the move toward more conceptual, as compared to prescriptive, international financial reporting standards, auditing standards and professional conduct standards, it is important to understand how IFRS will impact the U.S. insurance industry, including the implications for financial accounting and reporting. This article summarizes the key differences between GAAP and IFRS, and discusses potential implications for the insurance industry.
ACCESSION #
56470440

 

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