| 16 | IFRS 4 permitted entities to improve their accounting policies for insurance contracts in certain circumstances, provided they continued to comply with any other relevant legal or regulatory requirements. The majority of respondents agreed that FRS 103 should not be more restrictive than EU-adopted IFRS or FRS 101, however some respondents raised concerns. Those disagreeing highlighted the potential to reduce consistency of reporting between entities in the insurance industry and that it would be easier to change accounting policies for insurance contracts than FRS 102 would permit for other transactions. However, some respondents acknowledged that these concerns may not have a significant effect in practice because there is limited evidence of UK entities applying IFRS 4 taking advantage of this option, and therefore it was not clear that it would be widely used by entities applying FRS 103. |
