Accounting Standards and Guidance

FRC Financial Reporting Standards (FRSs)

UK/Irish accounting framework (effective for periods beginning on or after 1 Jan 2015)

FRS 103 Insurance Contracts

Section 2 Accounting Policies, Recognition and Measurement

Exemption from some requirements of FRS 102

Impairment of reinsurance assets

2.19	If a cedant's reinsurance asset is impaired, the cedant shall reduce its carrying amount accordingly and recognise that impairment loss in profit or loss. A reinsurance asset is impaired if, and only if:

(a)

there is objective evidence, as a result of an event that occurred after initial recognition of the reinsurance asset, that the cedant may not receive all amounts due to it under the terms of the contract; and

(b)

that event has a reliably measurable impact on the amounts that the cedant will receive from the reinsurer.

Licence and copyright

© 2018, LexisNexis Group a division of Reed Elsevier (UK) Ltd. All rights reserved.