By Rosemary Iwunze

Leadway Assurance Company Limited has said that investors as well as shareholders of insurance companies are set to experience a rebranded sector following the adoption of International Financial Reporting Standard, IFRS, by insurance operators.

Mr. Raphael Akomolede, of the Finance Department of Leadway who disclosed this, noted that the IFRS is a more intuitive presentation of financial performance and position.

Speaking on “Navigating the New Financial Reporting Standard,” at a one-day workshop organized by Leadway Assurance for members of the Nigerian Association of Insurance and Pension Editors (NAIPE) in Lagos, Akomolede said: “The impact of IFRS 17 include improved comparability for the first time; relevant and updated measurement of insurance contract liabilities; a more intuitive presentation of financial performance and position; enhanced disclosure and transparency and a clear distinguishing of insurance activities from investment activities.”

According to him, the main objective of the IFRS is to standardize insurance accounting globally to help users of accounts and shareholders make sensible comparisons between companies, their past performance, their current financial position and risk exposure.

Speaking on the problem with current IFRS 4, he said the IFRS 17 replaces the IFRS 4, an interim standard that allows insurers to use local Generally Accepted Accounting Principles (GAAP) to measure insurance contracts; no single way to account for insurance contracts; existing accounting makes it hard for investors to see which groups of contracts are profit-making and which are not.