ПРИЛАГАНЕ НА МСФО 9 ФИНАНСОВИ ИНСТРУМЕНТИ ОТ ЗАСТРАХОВАТЕЛИТЕ
APPLICATION OF IFRS 9 FINANCIAL INSTRUMENTS BY INSURERS

Summary/Abstract: The application of International Financial Reporting Standard (IFRS) 9 Financial Instruments by insurers requires to introduce a new model of impairment of the financial instruments they held for securing their obligations to the insured persons, insuring parties and beneficiaries under concluded insurance policies. Such new model of impairment has significant impact on the insurance companies‘ financial statements due to the evaluation of their credit losses, which needs to be objective and weighted according to the probability of the information for future periods. The evaluation should be reasonable, justified, provident and authentic. The standard requires the insurers to carefully evaluate, as at each reporting date, if the credit risk has significantly increased in comparison to its initial recognition. Any significant increase of the credit risk for the insurers should be truly and fairly accounted for in their financial statements by presenting the development of the credit risk of a financial instrument and disclosing the recognition and amount of the expected credit loss. IFRS 9 Financial Instruments requires that all financial instruments should be initially measured at fair value, plus or less the transaction costs that are directly related with the acquisition or issue of the financial asset or the financial liability not stated at fair value through profit or loss. Insurers should present in details and by stages the disclosures by exposures to credit risk and expected credit losses for the purposes of not concealing the important differences between the financial instruments. The information disclosed by the insurers in their financial statements should be disaggregated by categories (by type of counterparty, geographical region, type of product or significant concentration of credit risks). By applying IFRS 9 Financial Instruments, insurers will improve the quality and transparency of their disclosures in the financial statements. To this end, they should reinforce their internal control on financial reporting in order to ensure the quality and reliability of the information presented in their financial statements.

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