CEA urges IASB to align IAS 39 and IFRS Phase II

Insurers have voiced their concerns that the International Accounting Standards Board’s (IASB) proposals to reform IAS 39 on financial instruments do not properly reflect the business models of insurance. The Comité Européen des Assurances (CEA) urged the IASB to align its work on the IAS 39 exposure draft and the forthcoming IFRS 4 Phase II for insurance contracts in order to ensure that the two projects are compatible in their application to insurance firms. A standard for Phase II for insurance contracts is not expected until 2011, with implementation pencilled in for 2013.