IFRS-4 – Insurance Contracts

The objective of this IFRS is to specify the financial reporting for insurance contracts by any entity that issues such contracts until the Board completes the second phase of its project on insurance contracts.

An insurer shall assess at each reporting date whether it’s recognized insurance liabilities are adequate, using current, estimates of future cash flows under its insurance contracts. If that assessment shows that the carrying amount of its insurance liabilities is inadequate in the light of the estimated future cash flows, the entire deficiency shall be recognized in profit or loss. An insurer shall disclose information that identifies and explains the amounts in its financial statements arising from insurance contracts. An insurer shall disclose information that helps users to understand the amount, timing and uncertainty of future cash flows from insurance contracts.