Full compliance with International Financial Reporting Standards (IFRS)-17 will increase transparency and accountability in the insurance sector and companies will be able to gain public trust, which will help bring about fundamental changes in the insurance sector, said Mohammad Zainul Bari, chairman of the Insurance Development and Regulatory Authority (IDRA).
"IDRA will give more importance to complying with IFRS-17 so Bangladeshi insurance companies can prepare their financial statements according to international accounting standards immediately upon implementation of this standard next year," said Zainul Bari speaking as chief guest at the "IFRS - Insurance Contracts: Overview, Implementation Challenges and Way Forward" programme, organised by the Institute of Chartered Accountants of Bangladesh at Pan Pacific Sonargaon Hotel in Dhaka on Sunday.
Compliance with IFRS-17 will be effective from 1 January 2023 and listed companies will follow this standard in preparing annual reports. Currently, companies prepare annual reports following 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, said the IDRA chairman and sought the cooperation of various stakeholders, including ICAB, and 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. Hence, the increasing linkage between insurers and banks is considered in safeguarding the country's financial stability.
He added that accounting standards in this sector are an important element for sustainable growth, alongside increasing transparency.
Wasequl H Reagan, a partner at Mahfel Huq and Co, presented the keynote article. Chairmen, managing directors, chief executive officers, and directors of life and non-life insurance companies, participated in the seminar.