Full compliance with International Financial Reporting Standards (IFRS)-17 will increase transparency and accountability in the insurance industry and companies will be able to earn public trust, which will help bring about fundamental changes in the insurance industry. insurance, said Mohammad Zainul Bari, chairman of the Insurance Development and Regulation Authority (IDRA).
“IDRA will place more emphasis on compliance with IFRS-17 so that Bangladeshi insurance companies can prepare their financial statements in accordance with international accounting standards upon implementation of this standard next year,” said Zainul Bari speaking as a keynote speaker at the conference “IFRS – Insurance Contracts: Overview, Implementation Challenges and Way Forward”, organized by the Institute of Chartered Accountants of Bangladesh on Sunday at the Pan Pacific Sonargaon Hotel in Dhaka.
Compliance with IFRS-17 will be effective from January 1, 2023 and listed companies will follow this standard in the preparation of annual reports. Currently, companies prepare annual reports in accordance with International Financial Reporting Standards, International Accounting Standards and Bangladesh Financial Reporting Standards, he added.
Insurance development and regulatory bodies will develop an action plan to fully comply with IFRS-17, the IDRA Chairman said and sought cooperation from various stakeholders including ICAB and the FRC in this regard.
Md Shahadat Hossain, president of the Institute of Chartered Accountants of Bangladesh, said insurance companies are major investors in financial markets. Therefore, the growing link between insurers and banks is taken into account in safeguarding the financial stability of the country.
He added that accounting standards in this sector are an important element for sustainable growth, alongside increased transparency.
Wasequl H Reagan, a partner at Mahfel Huq and Co, presented the lead article. Presidents, managing directors, managing directors and administrators of life and non-life insurance companies participated in the seminar.