GAD helps introduce new accounting standard
GAD has held a webinar for public sector specialists on the complex accounting standard IFRS 17. We were involved in the development of the IFRS 17 application guidance.
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The Government Actuary’s Department (GAD) has shared expertise in the new complex accounting standard IFRS17 (the International Financial Reporting Standards).
GAD held a webinar for around 130 specialists from the public sector. It provided an introduction to the actuarial aspects of IFRS 17 within the public sector.
New accounting principles
GAD was involved in the development of the new IFRS 17 application guidance. It is for accounts within scope of the government financial reporting manual (FReM) from 1 April 2025. We helped with the development of the guidance, as part of HM Treasury’s working party, by working through the requirements.
We had previously engaged with some government departments and arm’s-length bodies to help consider scope and potential data requirements for the new style of calculations.
GAD’s services included helping value difficult to quantify risks. This included potential future liabilities which may include a contractual transfer of risk.
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Actuarial advice
IFRS 17 is a global accounting standard developed by the International Accounting Standards Board. It establishes principles for the accounting and financial reporting of insurance contracts.
Organisations, including those from the public sector, which will be affected by this new standard, are advised to consider seeking actuarial advice.
The scope of IFRS 17 is much wider than just insurance companies, with any material transfer of risk from one party to another potentially included.
Significant engagement
GAD actuary Nick Clitheroe, who led on the webinar, specialises in IFRS 17. He said: “Among its key features, IFRS 17 introduces a single comprehensive framework for accounting for all types of insurance contracts.
“GAD’s webinar highlighted to participants how affected organisations should re-examine how their insurance contracts are reported.”