PSAK 74/IFRS 17 – Insurance Contracts

What’s new?

PSAK 74 is adopted from IFRS 17. If we take a look at various insurance contracts from around the world, we find that they are accounted for using different measurement frameworks. The new standard tries to achieve a consistent insurance accounting framework. A fundamental shift might be required in the way in which data is collected, stored and analysed, changing the emphasis from a prospective to a retrospective basis of analysis and introducing a more granular level of measurement and additional disclosures. Consequently, PSAK 74 will fundamentally change accounting practices for all entities that issue contracts within the scope of the standard for insurance contracts. Implementing the new standard of PSAK 74 will involve many stakeholders beyond actuarial, accounting and finance functions, where there are a number of decisions and choices to be made.

Who is it for?

This training is ideal for finance professionals in insurance sectors, especially finance managers, heads of consolidation, financial and accounting managers involved in preparing financial statements, controllers, treasurers and financial analysts.

How do we do it?

With detailed case studies, practical insights and frequently asked questions on implementation issues, participants will get a high-level overview of what needs to be done and how to deal with the changes. A one-day training course is structured as follows:

What is IFRS 17?
Impairment model
Examples and case studies

What is IFRS 17?

IFRS 17 is a new accounting reporting standard for insurance contracts which will supersede the current reporting standard; IFRS 4. It is the biggest change to accounting standards for insurance companies in the last two decades combined. The purpose of introducing a new standard is to align insurance company reporting frameworks across the globe and improve their consistency, comparability and transparency.

Impairment model

The core approach to the measurement of insurance contracts in IFRS 17 is referred to throughout this publication as the ‘general model’. IFRS 17 includes modifications and a simplification to the general model that is applicable in specified circumstances.

Examples and case studies

Real examples and case studies will enhance understanding of how measurement model should be applied in practice.

Slides and materials will be provided in English and the course will be delivered in Bahasa Indonesia.

Minimum participants: 20 people per session
Maximum participants: 30 people per session

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