The new accounting standard will be fully implemented in 2021.
Oman’s Capital Market Authority (CMA) has issued a circular to all insurance companies, urging them to prepare for implementation of IFRS 17.
The circular prescribed a three-stage process for the assimilation of IFRS17 in insurance contracts, in the first phase companies are called upon to conduct a gap analysis in respect of the financial and operational impact in the implementation of IFRS 17 and the second phase relates to the design of internal rules and processes to cope with IFRS 17 with regard to accounts, statements and other requirements.
The third phase includes the commencement of the empirical implementation of IFRS 17 and an evaluation of the results.
IFRS 17 provides unified standards for accounting of all insurance contracts including reinsurance contracts, allowing comparability for the benefit of investors and insurers.
The new standard will replace IFRS 4, reported local daily, Oman Observer.