Proposal for accounting for insurance contracts

The International Accounting Standards Board (IASB of the Board) is developing a new International Financial Reporting Standard (IFRS) on accounting for insurance contracts. The IASB's insurance contracts project has been split into two phases. Phase I culminated in 2004 with the publication of IFRS 4 'Insurance Contracts', which permitted many existing international insurance contract accounting practices to be retained. On 30 july 2010 the Board issued its Exposure Draft on phase II, which is intended to result in a single consistent recognition and measurement standard for insurance contracts internationally. If adopted the Exposure Draft will replace IFRS 4.