Project description
The project “Consolidated financial statements of insurance companies” aims to release, within a reasonable timeframe, a revised recommendation for insurance companies that takes into account the interests of the various stakeholder groups (including large and small users, readers of financial statements, regulators and the Commission of the FER foundation) in a balanced manner. The revised recommendation is intended to fit into the concept of Swiss GAAP FER with the individual recommendations for the financial statements of single organisations and Swiss GAAP FER 30 for consolidated financial statements as well as Swiss GAAP FER 31 for listed companies. Swiss GAAP FER 41 “Accounting for real estate insurers and for health insurers” is not subject to revision.
Current project status
After compiling an inventory and prioritising the topics of focus, the working group dealt intensively in the first three quarters of 2016 with issues related to the assessment of capital investments, actuarial provisions and related disclosure rules. Currently, regulations related to the income statement and segment reporting are being compiled. In 2017, the regulations were further refined and subjected to a field test. On 5 December 2017, the Commission adopted a draft for consultation. After the consultation period ended the working group checked the results and made few changes. On June 12 the commission has launched Swiss GAAP FER 40 “Consolidated financial statements of insurance companies”, the result of the consultation with few adjustments.
Reasons for the revision
Swiss GAAP FER 14 “Consolidated financial statements of insurance companies” has not been changed since its introduction in 2001. Even in conceptual terms, Swiss GAAP FER 14 no longer fits into the current structure of the other Swiss GAAP FER (core FER, further Swiss GAAP FER, consolidated financial statements). As a result, the Commission decided in December 2014 to withdraw Swiss GAAP FER 14 — without providing a provisional determination of a withdrawal date. Instead, industry representatives were invited to a round table meeting that took place on 21 April 2015 in Zurich.
Since the Foundation for Accounting and Reporting Recommendations see itself as a service provider for the practice and its concern is to offer local insurance companies a measured and practicable solution, the Commission decided on 15 June 2015 to launch a revision project.
Composition of the working group
The working group takes into account various stakeholder groups and has been composed to include a broad variety of interests. In addition to users of different company sizes, regulators, association representatives, auditors and an analyst and an actuary are part of the working group.
The working group is chaired by Prof. Dr. Reto Eberle, who is a member of the Executive Committee of the FER Foundation.
Please address any questions to Prof. Dr. Reto Eberle, Member of the Executive Committee / Project Manager “Reporting for Insurance Companies”, Chair of Auditing and Internal Control, Plattenstrasse 14, 8032 Zurich, Tel: 044 634 59 91, Email: fachsekretaer@fer.ch.
Project conclusion
The revised draft of Swiss GAAP FER 14 was approved at the commission meeting on 12 June 2018. The revised standard will be applicable as Swiss GAAP FER 40 on 1 January 2021.
Consultation
A total of 8 comments were received during the consultation period. Those comments that did not contain a confidentiality notice were not included on the homepage. We thank all who took part in the consultation.
Questions & feedback
We are happy to provide you with information and receive your feedback.
Enactments
Decision and enactment of the recommendation:
The results of the consultation on new regulations for revenue recognition were discussed at the Commission meeting of 12 June 2018 and certain adjustments made. The adjusted standards will enter into force as Swiss GAAP FER 40 on 1 January 2021. A version of the standard in English is not available yet. You can find German and French versions on the respective sites.