The FRC has warned that proposed changes to the way insurance contracts are accounted for will make insurance companies’ financial statements more complicated and difficult to understand.

The International Accounting Standards Board (IASB) refined its rules on insurance contracts in June after a public consultation on plans in 2010.

The FRC has sent a letter to the IASB, stating that measuring and presenting insurance liabilities in other comprehensive income will ‘create extensive accounting mismatches’ and cause increased complexity, making financial statements less understandable for users.

Read the full story at Accountancy Age.