Presentation and disclosures
Example presentation of the Statement of Comprehensive Income in compliance with the Exposure Draft on Insurance Contracts issued in July 2010

Example presentation of the Statement of Comprehensive Income in compliance with the Exposure Draft on Insurance Contracts issued in July 2010 Executive summary
The International Accounting Standards Board (IASB) issued an Exposure Draft (ED) on 30 July 2010 which, if adopted, will replace IFRS 4 Insurance Contracts (IFRS 4). The ED seeks to establish a single consistent recognition and measurement model, with complementary presentation and disclosure requirements aimed at enhancing transparency, for all insurance contracts issued by entities reporting under International Financial Reporting Standards. This publication provides an overview of the presentation model and specific disclosures required by the ED. It highlights the main differences with the previous presentation requirements under IFRS 4, and considers some possible implementation issues. It does not attempt to highlight the differences between the current and the proposed measurement model. The analysis is based on a fictitious composite insurer (Insurance Group Ltd.) and seeks to illustrate how the current presentation of the Statement of Comprehensive Income under IFRS can be transformed into the presentation model that the ED proposes. The analysis also seeks to show how the presentation within the Statement of Comprehensive Income interacts with the reconciliation of insurance contract balances – a new disclosure requirement proposed in the ED. The proposed presentation model under the ED (the summarised margin presentation) intends to present the drivers of underwriting performance as a means to provide insight into the accuracy and reliability of the estimated cash flows for the insurance contracts. The traditional financial performance indicators such as premium volume, insurance benefits and claims, may now be presented in