International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS)

This chapter aims to illustrate the main impacts of IAS/IFRS standards on an insurance undertaking. In the paragraphs that follow the impacts deriving from IAS/IFRS are described in detail. IAS 39 defines the main changes concern the introduction of new rules of classification, and measurement of financial instruments. IFRS 9, replacing the IAS 39, foresees new classifications and different measurement criteria for assets. IFRS 7 gives the requirements for disclosure in the matter of financial instruments. IFRS 4 governs the measurement criteria for insurance contracts and relative technical components. IFRS 17 introduces a new measurement model of an insurance contract, replacing the IFRS 4. IAS 38 applies to all intangible assets included within its area of application (with some specific exclusions). IAS 36 requires an analysis being made of possible losses of value for all intangible assets. IFRS 3 foresees business combination transactions, for instance, control obtained of one or more corporate assets. IAS 12 governs the criteria for accounting of income taxes. IFRS 8 requires an entity to provide information allowing to assess the nature and effects on the financial statements of the business activities.