The Reserve Bank of New Zealand - Te Pūtea Matua (RBNZ) has discontinued two Quarterly Insurance Survey publications as insurance companies transition to the new international financial reporting standards, more commonly known as IFRS 17.
This new standard is expected to have a significant impact on the financial reports of insurers, a situation which necessitated the discontinuation of the income statement (J10) and balance sheet (J20) publications of the firms for RBNZ. These will eventually be replaced by new financial reports, although the bank has not yet given specific timings for these.
In a news release, the RBNZ outlined future financial reporting, which will include an Annual Insurer Report (AIR) and a Quarterly Insurer Report (QIR). The proposed new QIR will be based on the AIR, although slightly less detailed. QIR’s financial reporting is based on management accounts instead of audited financial statements.
The International Financial Reporting Standard (IFRS) 17 is replacing the outgoing IFRS 4, and officially came into mandatory effect for insurers starting Jan. 1. Countries such as Korea have expressed interest in the new standard, with many insurers reporting an expectation in the rise of profits once IFRS 17 financial reporting starts.
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