The Body of Expert and Licensed Accountants of Romania provides you with a new useful professional material – a brochure in electronic format which contains the Romanian translation of the new standard issued by the IFRS Foundation in 2017, IFRS 17 Insurance Contracts, and IFRIC 23 Uncertainty over Income Tax Treatments.
Starting today, you can find the brochure including the two documents in Romanian on the online platform www.librarie.ceccar.ro, .
IFRS 17 Insurance Contracts was issued by the International Accounting Standards Board in order to replace the interim standard IFRS 4 and to help investors and other stakeholders better understand insurers’ risk exposure, profitability and financial position.
IFRS 4 has given companies dispensation to carry on accounting for insurance contracts using national accounting standards, resulting in a multitude of different approaches. As a consequence, it is difficult for investors to compare and contrast the financial performance of otherwise similar companies. IFRS 17 solves the comparability problems created by IFRS 4, by requiring all insurance contracts to be accounted for in a consistent manner, for the benefit of both investors and insurance companies. The obligations associated with insurance contracts will be accounted for using current values, instead of historical cost. The information will be updated regularly, providing more useful information for the users of financial statements.
Hans Hoogervorst, IASB Chairman, said: “The insurance industry plays a vital role in the global economy; high-quality information to market participants on how insurers perform financially is therefore extremely important. IFRS 17 replaces the current myriad of accounting approaches with a single approach that will provide investors and others with comparable and updated information.”
Due to the range of accounting methods in use today, some countries will see more significant changes than others with the introduction of the new Standard.
IFRS 17 has an effective date of 1 January 2021, but companies can apply it earlier.
The second material included in the electronic brochure, IFRIC 23 Uncertainty over Income Tax Treatments, was issued as an interpretation of IAS 12 Income Taxes, to specify how to reflect uncertainty regarding the accounting for income taxes.
The IFRS Interpretations Committee issued IFRC 23 in order to deal with potential unclarities related to how tax law applies to a certain transaction or circumstance or the extent to which a taxation authority will accept the tax treatment used by a company. IAS 12 Income Taxes specifies how to account for the current and deferred taxes, but not how the effects of the uncertainty should be reflected.
The electronic brochure can be purchased from www.librarie.ceccar.ro, at the price of 30 lei (VAT not included).