IFRS approach “closely in line” with Solvency II, Ceiops

Ceiops has argued that the two major regulatory changes facing insurers – Solvency II and IFRS Phase II – are heading in the same direction, addressing concerns that the development of the two projects are out of sync. In a formal response to the International Accounting Standard Board’s (IASB) discussion paper on Phase II, published in May 2007, Ceiops said it is differences in terminology, rather than approach, that have confused the picture. “We believe the IASB’s approach to accounting for insurance contracts is closely in line with our own work on Solvency II, and although the exact terminology used may occasionally differ, we believe that in practice the two regimes are capable of achieving very similar outcomes”, Ceiops said.