You will find here Mazars Insights as regards some IFRSs.
The large insurance groups have once again prepared their financial statements under a stable framework that awaits the adoption of IFRS 4 phase 2 (which is still subject to debate) and in a changeable economic and regulatory context with the implementation of Solvency 2 and the designation of systemic players.
The ‘consolidation package’ published by the IASB in May 2011 became mandatory for European issuers for annual periods beginning on or after 1 January 2014 but some groups have opted for early application of the new standards.
Based on the practices used by those already applying these standards, the objective of this study is to provide assistance to the large majority of groups who are preparing to apply the ‘consolidation package’ for the first time in 2014.
For the fifth consecutive year, Mazars has carried out a detailed analysis of the largest insurance groups’ financial information. The accounts of insurance entities for the year ended 31 December 2012 were prepared against an ongoing background of economic crisis, characterised by: continuing weak growth in the major world economies; low interest rates; and persistently volatile markets.
IFRS 10, which was published in May 2011, introduces a single definition of control and replaces the portion of IAS 27 which related to consolidated financial statements, as well as the SIC 12 interpretation on special purpose entities.
According to the IASB’s schedule, the new standard is effective from 2013 for entities with a reporting date at the end of the calendar year.
On 12 May 2011, the IASB published IFRS 11, Joint Arrangements, which cancels and replaces IAS 31, Interests in Joint Ventures. Nearly four years had therefore passed between the publication of the exposure draft ED 9 in September 2007 and the publication of the final standard. Four years during which the stakeholders tried and failed to have their voice heard by the IASB.
Since 2008 and the financial crisis, both analysts and investors have faced increased difficulty in assessing insurance groups’ performance. We have performed an analysis of the financial statement disclosures based on the 2010 year-end IFRS financial statements of several of the largest insurance and reinsurance groups looking at issues:
Mazars Insight IFRS 3 & IAS 27 - 2008/2009
Mazars published a technical brochure addressing the changes to IFRS 3 and IAS 27.
Under investors’ pressure, the FASB (i.e. the American accounting standard setter) and IASB initiated a few years ago a roadmap to the convergence of US GAAP and IFRS.
Mazars Insight: IAS 36 - 2009
The financial crisis and the fall of stock market prices are indications of potential impairment of long-term non-financial assets (intangibles, goodwill, tangibles, etc.).
Against this background, many companies have experienced the difficulties of applying the impairment tests set out in IAS 36, Impairment of assets.
These difficulties are increased by the lack of visibility on business plans in a very uncertain economic and financial environment.
Mazars Insight IFRS 5 - 2009
Practical guide to application and expected changes
IFRS 5, Non-current Assets Held for Sale and Discontinued Operations, was published to achieve convergence with US GAAP and represented a significant change for many companies.
This recent standard - effective from 1 January 2005 - has raised a lot of practical questions as to its implementation, particularly given the non-recurrent nature of operations falling within its scope.