IFRS 4 draft seen as more comprehensive

PETALING JAYA: Although the exposure draft on phase II of International Financial Reporting Standard (IFRS) 4 Insurance Contracts is expected to create some challenges for insurers in adopting the new standard, on the whole it will forge greater transparency and uniformity in financial reporting.

The IFRS 4 exposure draft was published by the International Accounting Standards Board and, once transitioned into a standard in 12 months, would replace the Generally Accepted Accounting Principles (GAAP) with a single IFRS for all insurance contracts.