UDC 368

ANALYSIS OF CHANGES IN INSURANCE COMPANIES' STATEMENT OF PROFIT OR LOSS DUE TO THE TRANSITION FROM IFRS 4 TO IFRS 17 Analysis of Changes in Insurance Companies' Statement of Profit or Loss due to the Transition from IFRS 4 to IFRS 17

Published in JOURNAL OF MONETARY ECONOMICS AND MANAGEMENT · Issue 3 · Pages 53–56 · Rubric: SCIENTIFIC ARTICLES
DOI: https://doi.org/10.26118/2782-4586.2026.32.82.007
Received: 24.03.2026 Accepted: 16.04.2026 Published: 16.04.2026 Language of publication: ENG
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.
IFRS 4, IFRS 17, insurance contracts, comparability of reporting, insurance company
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