IFRS Accounting & International Financial Reporting Standards
IFRS is a modern International Financial Reporting Standard introduced by the IASB or the International Accounting Standards Board. It has been in effect since January 1, 2021, and brings the most notable changes to insurance accounting that the sector has seen in the last 20 years.
Under IFRS 17, insurers must – :
- Update fulfilment cash flows at each reporting date, thereby offering greater transparency into the financial position and the associated risk.
- Recognize profits as insurance services delivered, leading to more accurate performance evaluation metrics for insurers.
This is a significant shift and needs insurers to make substantial changes to how they measure liabilities and recognize profits. So, are you ready to make the transition to IFRS 17 accounting?
By teaming up with CCH Tagetik, recognized as the Best Financial Management Solution in the 2018 SIIA Business Technology CODiE Awards, you’ll be able to reap the benefits of the user-friendly IFRS 17 solution. The CCH Tagetik IFRS 17 comes loaded with tools for managing the entire IFRS 17 process including measurement models, reporting, disclosures, and data management.
That is not all! The Tagetik IFRS 17 software offers calculations needed for reporting on insurance contracts for Life and Non-Life segments, while adhering to the IASB guidelines and other relevant regulators. Some of its built-in calculation rules include the Premium Allocation Approach or PAA/ General Model, BBA or the Building Block Approach, and the Variable Fee Approach or the VFA.
Benefits of the IFRS Accounting Software
Tailored implementation: CCH Tagetik’s non-disruptive approach helps businesses implement only the necessary functions based on their needs, ensuring the best solution while lowering costs.
Quick setup: Flexible options and preconfigured calculations bring down the implementation time, thus helping companies get up and running faster. This is of serious help to small and mid-sized businesses.
Seamless integration: Easily integrates with existing/ legacy infrastructure to handle complex data volumes, thereby helping in smooth operations.
Robust data repository: Stores detailed data sets with complete history, thus making audits and analysis easier and more reliable.
Error prevention: Comes with highly customizable data quality tools that prevent errors and ensure top-notch output quality.
Full process control: Offers complete control over configuration rules and processes, making it easier to manage and adapt.
High performance: Designed to process large amount of data quickly. It is capable of handling millions of records in a short time.
Adaptability: Adaptable enough to adjust to new information, calculation models, or even evolving regulatory/ customer requirements, thus making it future-ready
Tagetik’s Approach to IFRS 17 Compliance
Tagetik offers end-to-end support for the entire IFRS 17 process, making it easier for insurers to comply/ follow the standard.
- Tagetik collects, prepares, and normalizes data from a variety of resources, ensuring accurate and standardized inputs.
- Given the contractual nature of IFRS 17 calculations, Tagetik can handle extremely large data sets without breaking a sweat.
- It safely archives historical data to meet future audit requirements thus leading to greater transparency and compliance.
- It handles complex calculations necessary to meet PAA, BBA, and VFA evaluations, thus ensuring precision.
- Automatically generates double-entry postings to update the general ledger with IFRS 17 figures, hence streamlining the accounting process.
- Integrates IFRS 17 calculations with financial reporting and disclosures - thus leading to comprehensive and accurate reporting.
- The fact that it supports business intelligence tools, enables detailed operational reporting and offer better insights into data.
- Tagetik also offers tools for other IFRS standards. This includes IFRS 9 for Financial Instruments, IFRS 15 for Revenue Accounting, and IFRS 16 for Lease Accounting.
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For more info, please visit - https://www.tagetik.com/th/solutions/disclosure-compliance/ifrs-17.
IFRS 17 and Its Impact on Insurance Accounting
- IFRS 17 has resulted in a major change in insurance accounting - bringing in transparency to financial reporting and changing the way profits are recognized. CCH Tagetik’s IFRS 17 solution simplifies this transition - offering customized functions and seamless integration to varied business needs.
- Key benefits of this includes robust data quality assurance, fast implementation, and improved flexibility to adapt to changing regulatory requirements.
- Thanks to its comprehensive approach, CCH Tagetik covers everything - from data collection and calculations, to the eventual reporting, thus making sure that you’re always compliant. Additionally, it offers tools for other IFRS standards, such as IFRS 9, IFRS 15, and IFRS 16.
- Stay ahead of the competition with CCH Tagetik’s IFRS accounting solution. It’s designed to help you navigate the complexities of evolving regulations.