An evaluation of the proposed IFRS 4 Phase II measurement methodology: the impact of South African life insurers

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dc.contributor.advisorStrugnell, Daveen_ZA
dc.contributor.advisorTripe, Peteren_ZA
dc.contributor.authorMarszalek, Szymonen_ZA
dc.date.accessioned2014-10-17T10:09:50Z
dc.date.available2014-10-17T10:09:50Z
dc.date.issued2014en_ZA
dc.descriptionIncludes bibliographical references.en_ZA
dc.description.abstractNearly 20 years after inception, the Insurance Accounting project of the International Accounting Standard Board (IASB) is nearing completion. The recently published June 2013 International Financial Reporting Standard 4 (IFRS 4) Exposure Draft represents a likely picture of the future of global insurance financial reporting and it is important that insurers begin to understand and prepare for the changes it will bring. This dissertation explores the key principles and likely impacts of the IFRS 4 Phase II standard, in its current proposed form, in the South African life insurance context. In particular, the proposed IFRS 4 Phase II approach to profit reporting is contrasted with the current Financial Soundness Valuation (FSV) approach for simple illustrative term and endowment insurance products. The results of this comparison form the basis for a discussion of the impacts which the new profit reporting standard will have on insurance contract liabilities and hence profit profiles over time, and an assessment of whether the changes embodied in the new standard better meet the objectives of insurance financial reporting and the needs of the users of financial statements. This dissertation focusses on key areas where there is a high degree of certainty in the exposure draft, and touches more lightly on those areas where change is still expected. The findings indicate that IFRS 4 will result in insurer financial reporting being more principles-based, better meeting the requirements of fundamental financial reporting characteristics and being more comparable with insurer financial reporting internationally. These findings support the conclusion that a move to IFRS 4 for insurer financial reporting in South African will be beneficial to users of financial statements in making economic decisions.en_ZA
dc.identifier.apacitationMarszalek, S. (2014). <i>An evaluation of the proposed IFRS 4 Phase II measurement methodology: the impact of South African life insurers</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,Division of Actuarial Science. Retrieved from http://hdl.handle.net/11427/8522en_ZA
dc.identifier.chicagocitationMarszalek, Szymon. <i>"An evaluation of the proposed IFRS 4 Phase II measurement methodology: the impact of South African life insurers."</i> Thesis., University of Cape Town ,Faculty of Commerce ,Division of Actuarial Science, 2014. http://hdl.handle.net/11427/8522en_ZA
dc.identifier.citationMarszalek, S. 2014. An evaluation of the proposed IFRS 4 Phase II measurement methodology: the impact of South African life insurers. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Marszalek, Szymon AB - Nearly 20 years after inception, the Insurance Accounting project of the International Accounting Standard Board (IASB) is nearing completion. The recently published June 2013 International Financial Reporting Standard 4 (IFRS 4) Exposure Draft represents a likely picture of the future of global insurance financial reporting and it is important that insurers begin to understand and prepare for the changes it will bring. This dissertation explores the key principles and likely impacts of the IFRS 4 Phase II standard, in its current proposed form, in the South African life insurance context. In particular, the proposed IFRS 4 Phase II approach to profit reporting is contrasted with the current Financial Soundness Valuation (FSV) approach for simple illustrative term and endowment insurance products. The results of this comparison form the basis for a discussion of the impacts which the new profit reporting standard will have on insurance contract liabilities and hence profit profiles over time, and an assessment of whether the changes embodied in the new standard better meet the objectives of insurance financial reporting and the needs of the users of financial statements. This dissertation focusses on key areas where there is a high degree of certainty in the exposure draft, and touches more lightly on those areas where change is still expected. The findings indicate that IFRS 4 will result in insurer financial reporting being more principles-based, better meeting the requirements of fundamental financial reporting characteristics and being more comparable with insurer financial reporting internationally. These findings support the conclusion that a move to IFRS 4 for insurer financial reporting in South African will be beneficial to users of financial statements in making economic decisions. DA - 2014 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2014 T1 - An evaluation of the proposed IFRS 4 Phase II measurement methodology: the impact of South African life insurers TI - An evaluation of the proposed IFRS 4 Phase II measurement methodology: the impact of South African life insurers UR - http://hdl.handle.net/11427/8522 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/8522
dc.identifier.vancouvercitationMarszalek S. An evaluation of the proposed IFRS 4 Phase II measurement methodology: the impact of South African life insurers. [Thesis]. University of Cape Town ,Faculty of Commerce ,Division of Actuarial Science, 2014 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/8522en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentDivision of Actuarial Scienceen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.titleAn evaluation of the proposed IFRS 4 Phase II measurement methodology: the impact of South African life insurersen_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMBusScen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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