IFRS 4 Phase 2 is the new regulation issued by the IAS Board will should be enforced in 2013. The scope of IFRS 4 Phase 2 is the treatment of liabilities insurance contracts. The aim is to achieve consistency of accounting and valuation of insurance & reinsurance contracts across companies, as well as improving investors’ understanding of insurance companies' profitability and financial position. These new rules will have impacts (such as for Solvency II) on the organisation, processes, systems and data of a company.
We identified all potential synergies between the Solvency II and IFRS value chains. The objective of this exercise was to ensure that each key element is taken into account during the Solvency II initiative if the company decides not to start the IFRS 4 Phase 2 project before the finalization of the text. By key elements, we are referring to data requirements, business rules, fast close, and so on. Our accelerator will help our clients to avoid making some architectural changes which will no longer be relevant under IFRS 4 Phase 2 requirements.
Deloitte Luxembourg is recognised as a centre of competence related to IFRS 4 Phase 2. Our IFRS team is performing research and training to provide the most up-to-date information to our clients and develop the appropriate tools to support clients’ efforts.