BUSINESS REPORTER
MUSCAT, OCT 9
The Capital Market Authority (CMA) has announced that starting from the current year 2023, the conventional re/insurance companies in the Sultanate of Oman have commenced the adoption of the IFRS 17 Insurance Contracts which was issued by the International Accounting Standards Board as a replacement of IFRS 4.
The new standard identifies specific accounting approaches rather than the previous standard. This could impact the insurance company’s financial statements to various degrees based on the insurance contract’s nature. It is worth noting that the IFRS 17 will eventually elevate the disclosures quality and thus enhances transparency on the insurance contract related risks.
Additionally, it enables comparison of the financial statements among insurance companies for either locally and globally, which provides an in-depth detail to the public, investors and stakeholders.
Moreover, the CMA has urged all insurance companies to engage regularly with investors and stakeholders to emphasize changes that might occur to the company’s business and financial statements to support investors in the process of financial analysis which is based on a high quality data to enable effective decisions. The impact of the initial implementation of the mentioned standard will be replaced in the equity section and financial performance of the third quarter of this year.
“The CMA is keen to provide the required support to all listed companies, investors and consumers, and given the challenges encountered by the insurance sector, particularly companies, audit firms and actuaries in the implementation of the new standard and in addition to the operational and regulatory difficulties faced by companies that requires further time to implement the new standard, the CMA decided to extend the disclosure period of listed re/insurance companies’ financial statements for the third quarter of 2023 to 60 days from the end of the quarter,” it added in a statement.
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