Analysis of Changes in Insurance Companies' Statement of Profit or Loss due to the Transition from IFRS 4 to IFRS 17
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 53
to 56
Status:
In work
Received:
24.03.2026
Accepted:
16.04.2026
Published:
16.04.2026
Subject area:
UDC 368
Language:
English
Keywords:
IFRS 4, IFRS 17, insurance contracts, comparability of reporting, insurance company
Abstract:
This article provides an overview of the key changes introduced by International Financial Reporting Standard 17 (IFRS 17) Insurance Contracts compared to its predecessor, IFRS 4. It focuses on the transformation of the statement of profit or loss, particularly the new emphasis on the financial result from insurance services. The analysis details the principal transition effects, including the reclassification of line items, the accounting for the time value of money, the discounting of losses, the introduction of an explicit risk adjustment, and the new recognition requirements for onerous contracts. Special attention is given to the differences between the General Model and the Premium Allocation Approach, as well as the challenges in comparability between companies due to divergent methodologies for allocating operating expenses between insurance and operational activities. This work serves as a practical guide to understanding the fundamental innovations of IFRS 17 and their impact on the financial reporting of insurance entities.
This article provides an overview of the key changes introduced by International Financial Reporting Standard 17 (IFRS 17) Insurance Contracts compared to its predecessor, IFRS 4. It focuses on the transformation of the statement of profit or loss, particularly the new emphasis on the financial result from insurance services. The analysis details the principal transition effects, including the reclassification of line items, the accounting for the time value of money, the discounting of losses, the introduction of an explicit risk adjustment, and the new recognition requirements for onerous contracts. Special attention is given to the differences between the General Model and the Premium Allocation Approach, as well as the challenges in comparability between companies due to divergent methodologies for allocating operating expenses between insurance and operational activities. This work serves as a practical guide to understanding the fundamental innovations of IFRS 17 and their impact on the financial reporting of insurance entities.
Keywords:
IFRS 4, IFRS 17, insurance contracts, comparability of reporting, insurance company
IFRS 4, IFRS 17, insurance contracts, comparability of reporting, insurance company
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