Set new accounting standards, accountants told

THE Association of Chartered Certified Accountants (ACCA) has urged Zambian accountants, especially those working in the insurance industry, to embrace the new accounting standards that will replace the current standards by 2021 and will be consistent with global new insurance contracts standards.

Last week, the International Accounting Standards Board (IASB) issued international financial reporting standards (IFRS) number 17 as the new insurance contracts standard.
According to the ACCA, existing insurance accounting treatments around the world are unpredictable and none are the same as IFRS17.
Commenting on the development, ACCA Zambia manager Mukaba Mukaba said the association is making efforts to sensitise professional accountants, particularly those working in the Pensions and Insurance Industry in Zambia, to understand the scope of this standard.
“We, therefore, encourage professional accountants in the industry to make every effort to participate in learning and development opportunities focusing on this standard through workshops, seminars and conferences scheduled to take place this year,” he said, in a statement issued by the ACCA newsroom.
And ACCA head of corporate reporting Richard Martin said it is a significant moment to see the IASB project on insurance accounting coming to fruition after 20 years of development.
“Those many years have been taken up with a fundamental examination of how insurance business can be best accounted for and extensive input from the insurance industry on how it can be implemented in a practical way.
“Existing insurance accounting treatments will be replaced in 2021 by a consistent treatment in all countries using global standards,” Mr Martin said.
He said the scope of this standard is limited because it applies only to the relatively restricted number of insurance companies.


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