The International Accounting Standards Board is seeking comments on its revised draft proposals for insurance contracts.

“We are approaching the end of this important project to bring consistency and transparency to the accounting for insurance contracts,” Chairman Hans Hoogervorst said.

“We are now seeking further feedback before finalising this much-needed standard.”

The Australian Accounting Standards Board is considering its position on the draft, which follows a version published in 2010. The proposals are open for comment until October 25.

Accounting giant Ernst & Young says the draft includes changes to the measurement of liabilities that will affect how profit is recognised over the length of insurance contracts.

It advises Australian insurers to start preparing for the standards, even though they are unlikely to take effect before 2018.

“This is particularly important given the possibility of some of the reporting requirements being implemented retrospectively,” Oceania Insurance Sector Leader Grant Peters said.

Companies may also be required to disclose comparative figures before the start date.