The Accounting Standards Board (ASB) of the Institute of Chartered Accountants of Pakistan has proactively initiated the deliberations and development of implementation strategy for the adoption and implementation of IFRS 17. In the recent ASB meeting Omer Morshed an insurance expert made a presentation to highlight the intricacies of the new insurance standard.
He explained that IFRS 17 is bringing a change of the magnitude that implementation of Solvency II brought in Europe. The new insurance standard will harmonise the method of measurement, presentation and disclosure thereby bringing consistency and comparability across the global insurance industry.
Further, it will make the business model more visible to the users of the financial statements, he added. ASB also deliberated on the implementation challenges and way forward. This board comprises of all the significant stakeholders and has a robust process of consultation with all the concerned parties in recommending adoption of new IFRS.
In May 2017, IASB issued the new Insurance standard, IFRS 17 Insurance Contracts, with effective date of 01 January 2021. In addition to its proactive involvement in the standard setting process in Pakistan, ASB is also actively working on various other projects that aim at developing, strengthening and aligning the private and public sector financial accounting and reporting practices with global requirements and trends.
ASB is working on other projects such as XBRL, International Public Sector Accounting Standards, guidance on new standards (IFRS 15, IFRS 16 etc.) and guidance on financial reporting matters emanating from the Companies Act 2017.