According to PRIAO report, the research project was carried out with the collaboration of Dr. Neda Rasouli, Dr. Mahnaz Mahmoodkhani, Dr. Parastoo Mostafaee, Dr. Hanieh Hekmat, and Dr. Mona Parsaee, Associate Professors of Al-Zahra University and Mahsa Tahmasbi Ashtiani and Touba Haghighat, Ph.D. candidates in accounting at Al-Zahra University.
Having 688 pages, the research project is divided into four major chapters: “Identification of the Issues and Challenges of Accounting and Financial Reporting in Iranian Insurance Companies”, “The Guideline for Identifying and Measuring Insurance Items and the Challenges of Implementing IFRS 17 and the Solutions in Addressing Them”, “Compliance of High Insurance Council Approved Bylaws with IFRS 17 Requirements”, and “The Guideline in Applying IFRS 17 in the Insurance Industry”.
The purpose of the International Financial Report Standards (IFRS) 17 is to maximize transparency and to reduce disparity in insurance contract accounting procedures and in 2023, it is expected to replace IFSR 4. Given the novelty and complexity of IFRS 17, the present study was conducted in 5 phases and in order to have an appropriate arrangement it was compiled in four chapters.
The first chapter that comprises the first phase of the research project, attempts to present the problems and issues of the financial reporting of the insurance industry including understanding and measuring, reporting, and disclosure that are three main pillars of any financial reporting framework. It also includes the systems and processes that have been identified through a survey by the participation of Iranian insurance industry experts using questionnaire. The first chapter could be considered as a report for understanding the status quo of the insurance industry in financial reporting and its challenges.
The second and third phases of the research project were to formulate a guideline to identify and measure insurance items, to address challenges of implementing IFRS 17, and to present relevant solutions to tackle them. Given the fact that introducing a guideline is coincided with presenting solutions, these two themes are arranged in two separate sections in chapter two of the current study.
Assuming that the laws and regulations and accounting standards (especially Accounting Standard (AS) 28) are two major effective forces in framing financial statements of the Iranian insurance institutes and that a deep understanding is required in distinguishing between GAAP and IFRS, the approved bylaws of High Insurance Council was addressed, examined, and analyzed in chapter 3 (Phase 4 of the project).
Chapter 4 comprises of the last phase of the present study and functions more or less as a guideline for implementing IFRS 17.
Those interested to read and download the Persian full text of the research project including its English abstract, please take a visit to https://www.irc.ac.ir/fa-IR/Irc/4944/Articles/view/16040/1615.