IFRS 17 Implementation Masterclass

The programme

Programme overview

IFRS 17 changes fundamentally the way in which an insurance entity reports its financial dimensions and results for a given period and over time. After investing 20 or so years of development effort into IFRS 17, the IASB are highly confident in their expectation that it will bring greater transparency and comparability about the profitability of both new and existing insurance contract business. The requirement to report the insurance and financial result separately will not only help to achieve this expectation but will also provide analysts and others with better information about the overall quality of insurance entity earnings.

The impact on individual insurance entities will be highly variable depending on their previous policies and practice, and the nature of the insurance business they contract, especially whether it is short tailed or life. There will consequently be many and varied impacts on the reported numbers and metrics.

Preparing for and implementing IFRS 17 will be problematic and challenging. It will require considerable effort to gain an initial understanding of the impact on the reported numbers as well as the upgrades to process and systems to ensure they can provide IFRS 17 compliant data. This will require, from an early stage, coordination and dialogue between functions such as Actuarial, Finance and IT in executing an IFRS 17 implementation project. Furthermore, dialogue with business users and investors should be early and extensive in order to minimise the possibility of and impact of any “unpleasant surprises”.

Ratomac IFRS 17 Implementation Masterclass is aimed at not only preparers and users of accounts but also implementation team members and will help them get to grips with IFRS 17 by providing, at the very least, an initial working knowledge of the rules, how the numbers are constructed and presented and the story that they are telling.

Who should attend

Who is this programme for?

• Executive leaders e.g. Chief Executive Officer, Chief Financial Officer & Chief Risk Officer;
• Board Non-Executive Directors responsible for Audit Committee and Financial Reporting;
• Heads of Finance, Actuarial and Risk and their subordinates preparing for the changes in insurance contract accounting practice;
• Insurance professionals wishing to learn about the critical technical differences between the accounting and reporting requirements of existing IFRS 4 (and industry practice) and IFRS 17; and
• Analysts, actuaries, auditors and finance professionals who wish to gain a working knowledge of this large new standard.

Learning outcomes

What you will learn

Delegates will be able to learn the following:

• Minimize the learning curve for getting up to speed on IFRS 17;
• Appreciate the major technical differences between the existing IFRS 4 and IFRS 17 requirements;
• Evaluate the significant impact of these differences through the use of real-world financial statements;
• Providing a vital first time appreciation of IFRS 17 that will help to plan ahead for its implementation; and
• Evaluate the method and timetable for transition to IFRS 17.

Explore the programme

Detailed programme outline

• Introductions, objectives and backgroundIntroductionsCourse objectivesThe journey from IFRS 4 to IFRS 17IFRS 17 objectivesIFRS 17 implementation approach
• Scope and definitionsIFRS 17 scope exclusionsIdentifying insurance contracts and insurance riskUnbundling non-insurance elements contained within contracts with customers
• Determining the unit of account – aggregation and groups of contractsPortfoliosTime related cohortsGroups of contracts – the unit of account
• IFRS 17 Accounting ModelsOutline of the accounting models availableA simple numerical introduction to the general modelExplanation and illustration of the “building blocks” approach
• IFRS 17 measurement and presentation – the general modelThe general model explained step by step with worked examplesInitial recognitionSubsequent measurementPresentation in the statement of comprehensive income
• IFRS 17 measurement and presentation – the premium allocation approachEligibilityThe PAA – initial recognition and subsequent measurements explained step by step with worked examples
• IFRS 17 measurement and presentation – modifications to the general modelAccounting for reinsurance contracts heldContracts with direct participation featuresContracts with discretionary participation features
• Other topicsContract modificationsDerecognition of insurance contracts
• Transitional rulesExplanation and illustration of the three IFRS 17 approaches:
• Fully retrospective
• Modified retrospective
• Fair value
• Transition disclosures
• IFRS 17 presentation and disclosurePresentation in the primary financial statementsA detailed review of the disclosure regime applied by IFRS 17Identification new data requirements to comply
• Key Messages and Wrap-UpWhat have you learnt?What will you remember?What will you apply?Implementation challengesImplementation case studies

Learning approach

How you will learn

Our diverse instructional approaches ensure effective learning:

– Lectures & Presentations: Engage with expert-driven, stimulating content.– Course Material: Access well-crafted supporting resources.– Group Work: Collaborate on discussions and case studies for practical insights.– Workshops & Role-Play: Participate in immersive, scenario-based activities.– Practical Application: Focus on applying theoretical knowledge in real situations.– Post-Training Support: Receive extensive support after training for skill implementation.

Discuss your requirements

Dates, duration & arrangements

Contact Ratomac to confirm dates, duration, delivery format, entry requirements and any applicable assessment or certification before booking.