The Corporate Affairs Ministry (MCA) has gazetted the much-awaited new accounting standard Ind AS 117 on 'Insurance Contracts', taking Indian accounting standards for insurers closer to global standards.
Ind AS 117, applicable to insurers’ financial statements from 1 April 2024 (FY2025), corresponds with IFRS 17, issued by the International Accounting Standards Board, which has been implemented since 1 January 2023. IFRS 17 is described as the “first truly international IFRS Standard for insurance contracts to help investors and other users to better understand insurers’ risk exposure, profitability, and financial position”.
Ind AS 117 supersedes Ind AS 104 (‘Insurance Contracts’) which took effect on 1 April 2020.
MCA has notified Ind AS 117, based on the recommendations of the National Financial Reporting Authority (NFRA), which is the country’s sole independent audit regulator.
For the notification, please click here.