Document Type : Research Paper
Authors
1
Department of Accounting, Faculty of Social Sciences & Economics, Alzahra University, Tehran, Iran
2
Assistant Professor, Department of Macro Insurance Studies, Insurance Research Center, Tehran, Iran.
3
phd student
4
MSc, Department of Accounting, Faculty of Social Science & Economics, Alzahra University, Tehran, Iran
10.22051/jera.2024.46871.3234
Abstract
In May 2017, the International Accounting Standards Board published International Financial Reporting Standard No. 17 entitled Insurance Contracts. IFRS17 has determined the principles of recognition, measurement, presentation and disclosure of insurance contracts, reinsurance contracts and investment contracts with optional participation features. The implementation of IFRS17 can have a significant impact on the financial management framework, profit, equity, reserves, financial reporting processes and actuarial models. IFRS17 introduces a new approach to determine the discount rate of insurance liabilities. The discount rate is the key component in calculating the present value of future cash flows associated with insurance contracts. The main goal of study is to develop a framework for estimating the insurance contract discount rate according to IFRS17 in Iran.This research is practical and in terms of data collection, it is descriptive and survey type.The data collection tool was a questionnaire.The statistical population consists of financial managers, actuaries, internal auditors and risk managers. A total of 85 valid questionnaires were received.The comparison test of the group mean and the variance analysis have been used to measure the opinions of different groups of respondents regarding the purpose of the research. The results of the comparison of the mean show that except for the propositions of choosing the rate of government debt bonds as the market rate and choosing the reference portfolio according to theoretical assets, the inclusion of liquidity features in insurance contracts, the existence of affordable prices observations in financial instruments, the use of market-based inputs to determine the discount rate, the use of the top and down approach in determining the discount rate, the annual determination of the discount rate for insurance contracts, the sensitivity of the results of the assessment of insurance liabilities, determining the discount rate by the board of directors, and other propositions have been significant.
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