Question 1:
What was the name of the new financial reporting standard that the IASB issued on Thursday?
IFRS 17
IFRS 18
IFRS 19
IFRS 20
Question 2:
What was the key change made by the new standard?
It eliminates the use of expected cash flows in measuring insurance liabilities.
It requires insurers to use a risk-adjusted discount rate to measure insurance liabilities.
It prohibits insurers from using a portfolio approach to measuring insurance liabilities.
It requires insurers to use a stochastic approach to measuring insurance liabilities.
Question 3:
When does the new standard become effective?
January 1, 2021
January 1, 2022
January 1, 2023
January 1, 2024
Question 4:
Which of the following is NOT a benefit of the new standard?
It will improve the comparability of financial statements between insurers.
It will reduce the volatility of insurance earnings.
It will make it easier for investors to understand the financial position of insurers.
It will eliminate the need for insurers to use complex financial models.
Question 5:
What is the main challenge that insurers will face in implementing the new standard?
The need to collect new data and develop new models.
The cost of implementing the new standard.
The lack of qualified staff to implement the new standard.
All of the above.
Kind regards G. Porter.
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