Insurers are currently faced with a new accounting standard, IFRS 17, which they must implement for financial periods beginning on or after 1 January 2023. A large insurer began its compliance journey a few years ago and enlisted Monocle to assist in meeting this compliance deadline.
Monocle identified the required end-state; completed IFRS 17 financials and disclosures, and worked backwards to determine the underlying data and accounting structures required. This involved research into IFRS 17, an analysis of the current standard (IFRS 4) and its implementation and a determination of the relevant changes required. Specific tasks to complete included:
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Creating general ledger, primary statement and note templates tailored to the client
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Mapping of actuarial data to the general ledger as well as primary statements and notes to the financial statements
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Identification of gaps in the data and processes to be addressed by the client
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Providing input to the client on areas of interest/concern by carrying out the relevant research and producing reports
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Research done throughout the process to incorporate industry best practice
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Journal Entry, General Ledger and Disclosure templates designed to meet IFRS 17 requirements
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Checks built to ensure completeness and accuracy of data
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An understanding of accounting, including accounting software, journal entries, general ledgers, financial statements and disclosures
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Knowledge of the key insurance regulations, particularly IFRS 4 and 17, the Insurance Acts (short and long term) and relevant Income Tax Act sections
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Knowledge of the insurance business, including aspects such as reinsurance, claims and premiums, as well as the underlying business processes
