Abstract
Purpose: Given the importance of insurance companies in the financial services industry in the overall structure of the economy, the effective application of International Financial Reporting Standard No. 17 is essential. The effect of the new standard on the financial statements and key performance indicators of insurance companies will be significant and therefore this study aims to identify the challenges that insurance companies will face in applying measurement models in the new standard. It has been done in Iran.Method: In this research, the method of qualitative content analysis through a focus group including people with relevant experience in the insurance industry and with prior knowledge of International Financial Reporting Standard No. 17 has been used.Results: In this study, the challenges of using the measurement models of International Financial Reporting Standard No. 17 in groupings including objectives and scope of use, unit of account and level of aggregation and separation of contracts, Onerous contract test, separation of insurance contract components, fee approach Variables, premium allocation approach and building block approach were identified and presented under subgroups.Conclusion: The results show that the measurement models in International Financial Reporting Standard No. 17 are highly dependent on judgment, actuarial modeling techniques as well as the quality of basic information. Insurance companies face several challenges that were identified and classified during the present study to be well understood. The findings of this study, while increasing knowledge in the field of insurance industry, provide insight for the supervisory authority of insurance companies, standardized accounting authority and the Exchange and Securities Organization to be able to take into account the challenges ahead, to achieve the goal.
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