The International Accounting Standards Board (IASB) is still undecided how non-insurance goods and services should be treated in an insurance contract.

The not-for-profit organisation, which sets global standards for accounting, has been meeting in London to look at the treatment of non-insurance goods and services and how they should be unbundled in an insurance contract.

The board has examined the principles for including these goods and services into a contract as a single item. It has also examined how insurers integrate them.

The IASB has now decided to consult with the International Financial Reporting Standards (IFRS) insurance working group to look at the practicality of implementing its proposals. 

The IFRS has set a deadline of June 30 to produce a draft accounting standard for insurance contracts that all insurers will have to use.

Also discussed at the London meeting was how an insurer should treat an account balance return in the contract.

The board believes the account balance should be separated from an insurance contract, but is looking further into whether the policyholder can withdraw the balance without loss of insurance cover.