The International Accounting Standards Board (IASB) has released the first standards intended for the insurance industry. International Financial Reporting Standard 4 (Insurance Contracts) applies to insurance and reinsurance contracts. Among the measures are requirements for insurers to maintain liabilities on their balance sheets until they are finalised or expire; and to stop creating equalisation reserves, which insurers use to offset the cost of future disaster claims.

Will the new standard affect Australian insurers? Charles Macek, Chairman of the Financial Reporting Council, says in a report in the Australian Financial Review today that any IASB changes made after March 31 will not be imposed on Australian companies, which must switch to the new standard on January 1 next year.

Find out more at www.iasb.org.