Financial, accounting, and operational impacts of implementing IFRS 17 for insurance companies
Rubrics: SCIENTIFIC ARTICLES
Authors:
1.
Federal State Budgetary Educational Institution of Higher Education "Financial University under the Government of the Russian Federation" Vladikavkaz Branch
2.
Financial University under the Government of the Russian Federation
(kafedra Audita i korporativnoy otchetnosti, docent)
employee
employee
Type:
Article
Pages:
from 73
to 76
Status:
In work
Received:
04.02.2026
Accepted:
04.02.2026
Published:
04.02.2026
Subject area:
UDC 368
Language:
English
Keywords:
IFRS 4, IFRS 17, insurance contracts, comparability of reporting, insurance company, accounting
Abstract:
This article examines in detail the specific financial, accounting, and operational changes triggered by the implementation of the IFRS 17 standard. The authors analyze key innovations such as the amortization of acquisition expenses, the introduction of a risk adjustment, the accounting for the time value of money in reserve measurement, and the immediate recognition of losses for onerous contracts. The main liability measurement models are considered: the General Measurement Model (GMM), the Premium Allocation Approach (PAA), and the Variable Fee Approach. Separate attention is paid to the reclassification of expenses and reinsurance transactions. The practical part of the article highlights the main operational challenges faced by Russian insurers: a large-scale change in the chart of accounts, problems with data and its retrospective collection, import substitution difficulties, and the need to maintain dual tax accounting systems. The conclusion is drawn about a significant increase in the complexity of accounting processes and the long-term nature of standard implementation projects.
This article examines in detail the specific financial, accounting, and operational changes triggered by the implementation of the IFRS 17 standard. The authors analyze key innovations such as the amortization of acquisition expenses, the introduction of a risk adjustment, the accounting for the time value of money in reserve measurement, and the immediate recognition of losses for onerous contracts. The main liability measurement models are considered: the General Measurement Model (GMM), the Premium Allocation Approach (PAA), and the Variable Fee Approach. Separate attention is paid to the reclassification of expenses and reinsurance transactions. The practical part of the article highlights the main operational challenges faced by Russian insurers: a large-scale change in the chart of accounts, problems with data and its retrospective collection, import substitution difficulties, and the need to maintain dual tax accounting systems. The conclusion is drawn about a significant increase in the complexity of accounting processes and the long-term nature of standard implementation projects.
Keywords:
IFRS 4, IFRS 17, insurance contracts, comparability of reporting, insurance company, accounting
IFRS 4, IFRS 17, insurance contracts, comparability of reporting, insurance company, accounting
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