IFRS 17 is an International Financial Reporting Standards that was issued by the International Accounting Standards Board (IASB). IFRS 17 is scheduled to be applied for reporting periods starting on or after 1 January 2021. It is undoubtedly the most significant change to insurance accounting requirements for the past 20 years.
The New IFRS 17 requires a company to:
- update the fulfilment cash flows at each reporting date to provide transparent reporting about a company’s financial position and risk
- recognise profits as it delivers insurance services to provide metrics that can be used to evaluate the performance of insurers
Insurers will now have to significantly change the accounting for liability measurement and profit recognition. Are you ready for IFRS 17 / IFRS Accounting?
Partnering with CCH Tagetik, awarded as the Best Financial Management Solution in the 2018 SIIA Business Technology CODiE Awards; CCH Tagetik IFRS 17 provides you with an easy-to-use workflow solution to help insurers manage the IFRS 17 process with reporting and disclosure tools, measurement models and data repositories.
CCH Tagetik cover the IFRS Accounting requirements with calculations necessary to provide reporting on insurance contracts for both Life and Non-Life business segments following guidance currently available from the IASB and other relevant regulators. The calculation rules configured in CCH Tagetik will include Premium Allocation Approach (PAA)/General Model, Building Block Approach (BBA), and Variable Fee Approach (VFA).
Benefits of IFRS Accounting
- The non-disruptive approach of CCH Tagetik allows for the implementations of only required functionalities as driven by customer’s specific business environment, ensuring best solution and minimizing overall investment.
- Preconfigured calculations and flexibility shorten implementation time.
- Integration with the existing infrastructure to manage complex volumes and various systems.
- Repository of detailed information: storing of complete data set with entire history for audit and analysis purposes.
- Highly configurable data quality tools to prevent errors and ensure top quality of outputs.
- Full visibility on the configuration rules and complete control of the processes.
- High performance in processing large volume of data: enables data processing of millions of records in short time.
- Agility to adapt to new information or calculation models and incorporate changing regulatory and customer needs.
Tagetik supports the entire IFRS 17 process:
- Collecting, preparing and normalizing data from widely diverse data sources.
- Processing extremely large data sets given the “contractual” nature of the necessary calculations.
- Archiving historical data for future audit requirement.
- Calculating all the detailed information needed to fulfil PAA, BBA, VFA evaluations.
- Generating double entry postings in order to update general ledger with IFRS 17 figures.
- Integrating result set of IFRS 17 calculations with Financial Reporting and Disclosures.
- Supporting the usage of proper BI tools in order to provide operational reporting, getting a deep insight in your data.
Besides IFRS17, Tagetik also provides tools for IFRS9 Financial Instruments, IFRS16 Lease Accounting, IFRS15 Revenue Accounting, etc.
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For more information, please visit: https://www.tagetik.com/th/solutions/disclosure-compliance/ifrs-17.
IFRS 17 and its Impact on Insurance Accounting
IFRS Accounting, a significant shift in insurance accounting, introduces transparent reporting and profit recognition changes. CCH Tagetik’s IFRS 17 solution streamlines compliance, offering tailored functionality and integration.
Benefits include data quality assurance, rapid implementation, and adaptability to evolving needs.
The comprehensive approach covers data handling, calculations, and reporting, with additional tools for other International Financial Reporting Standards.
Stay ahead in the evolving financial landscape with CCH Tagetik’s IFRS accounting solution.