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Insurance Accounting

Terms of Reference

Created – 1 April 1997, Updated - 9 August 2016

1.  Membership

Membership of the Committee is open to all IAA Full Member associations, in accordance with Article 4.3 vii of the Internal Regulations.

2.  Purpose

To promote the actuarial viewpoint in the development and application of financial reporting of insurance companies as developed by international accounting standard setters, including but not limited to the estimation and review of reporting values for insurance contracts prepared in the context of International Financial Reporting Standards.

3.  Role

  • To develop the IAA's response to exposure drafts and other pronouncements of the International Accounting Standards Board (IASB) and the International Auditing and Assurance Standards Board (IAASB) that relate to the financial reporting and auditing of insurance contracts and insurers.
  • To deal with matters arising from financial reporting standards of the IASB and IAASB as they relate to insurance contracts and insurers.
  • To address professional issues of international relevance for actuaries, accountants and auditors dealing with the financial reporting of insurance contracts and insurers, including development and maintenance of actuarial notes relating to insurance financial reporting and auditing.
  • To liaise with the IASB and IAASB on issues relating to insurance financial reporting.
  • To assist, where appropriate, the IAA Insurance Regulation Committee in its liaison role with the International Association of Insurance Supervisors (IAIS).
  • To communicate on these and related issues with other affected parties, including IAA Member Associations and relevant parts of the financial services industry.

4.  Decision-making authority

The Committee operates within the IAA Statutes and Internal Regulations.  Its responses to exposure drafts and other pronouncements is prepared in the context of Council approved rules; in particular, the IAA Fast Track Procedure.

5.  Operational Matters

Frequency of Meetings:
The Committee meets at least twice a year in conjunction with each IAA Council meeting and may also meet by teleconference or electronic link as required.

Agendas and papers: 
All meetings will have a formal agenda prepared by the Chairperson that generally must be distributed, along with required papers, at least one week before each meeting and made available on the Committee page on the IAA website.

Minutes will be prepared and distributed as soon as practicable after each meeting and will be made available on the Committee page on the IAA website.

The committee shall attempt to make decisions by consensus. However, where necessary, decisions may be made by a simple majority of the Committee members voting either at the meeting or electronically, with the Chairperson having a casting vote in the event of a tie.

The Committee reports to the Executive Committee (EC). To facilitate communication, the EC appoints one of its members to serve as the EC liaison person.
The Committee Chairperson will submit a proposed workplan and, where applicable, a related budget for the coming year, for EC consideration and approval.
The Chairperson will provide a written update report to the IAA Secretariat after each bi-annual Committee meeting.

IAA Liaison:
The Committee will liaise with other IAA Committees and Sections as required to carry out its role and activities.

External Liaison:
The Committee will liaise with external stakeholders as required to carry out its role and activities. A representative of the Committee will be responsible for serving as a liaison with other relevant international organizations.  These include the IASB, the IAASB and the IAIS, as applicable.  In particular, it desires to work through their advisory and technical committees (e.g., the Standards Advisory Committee of the IASB and the Consultative Advisory Group of the IAASB, and relevant working groups of those international organizations). The work products (e.g., IASPs, IANs, other educational materials, and external communications) of the Subcommittee on Education & Practice are submitted to the IAC for approval and ongoing action. These liaisons are subject to any requirements or processes of the IAA Statutes and Internal Regulations.
The liaisons are subject to requirements and/or processes of the IAA Statutes and Internal Regulations, and established policies and protocols. Public statements are made in accordance with the Branding Policy and the Due Process for Making a Public Statement.

Other operational matters:
The Committee will

  • develop a mode of operation appropriate to its specific mandate in order to maximize its flexibility and its capacity to adapt to a rapidly changing international context,
  • constantly monitor the relevant Internet Web sites,
  • support the maintenance of close ties with the IASB, IAASB and the IAIS in the area of insurance accounting and auditing, as applicable,
  • take actions deemed beneficial to the actuarial profession.
  • share information regarding developments and initiatives in relation to matters relevant to the IASB, IAASB and the IAIS via the Committee page on the IAA website.

6.  Subcommittees, Working Groups and Taskforces Reporting to the Committee

Subcommittee on Education and Practice and Expert Panel on Islamic Finance.