What questions should SMEs be asking their accountants about IFRS17?

Are your clients ready for IFRS 17?

In 2023, SMEs (small and medium-sized enterprises) that are required to prepare financial statements under IFRS (International Financial Reporting Standards) will have to comply with the new IFRS 17 standard on insurance contracts. This standard replaces the previous standard, IFRS 4, and introduces new requirements for the recognition, measurement, presentation, and disclosure of insurance contracts.

SMEs should be aware that IFRS 17 may have a significant impact on their financial statements, particularly in terms of the measurement of insurance liabilities and the presentation of revenue. They should also be aware that the implementation of IFRS 17 may require changes to their systems and processes.

SMEs should be asking their accountants the following questions about IFRS 17:

1. How will IFRS 17 affect the measurement of our insurance liabilities and the presentation of revenue in our financial statements?
2. What systems and processes will we need to put in place to comply with IFRS 17?
3. Will we need to make any changes to our current accounting policies and procedures?
4. How will IFRS 17 affect our solvency and capital requirements?
5. What support and resources are available to help us implement IFRS 17?

TGS member firms have the IRFS 17 answers you need in your country.

It’s important for SMEs to start preparing for IFRS 17 as soon as possible, as the implementation can be complex and time-consuming.

SMEs and individuals should consider engaging an TGS accountant who has experience in IFRS 17 to provide guidance and support throughout the implementation process.