The ABI has revised its Statement of Recommended Practice (SORP) to accommodate new UK accounting standards.
The ABI has published a revised version of SORP issued …
The ABI has revised its Statement of Recommended Practice (SORP) to accommodate new UK accounting standards.
It has published a revised version of SORP issued in 2003 after the Accounting Standards Board issued a “negative assurance” to the organisation.
The document applies to insurers' financial statements for periods beginning on or after 1 January 2005.
Revisions to the SORP recognise new UK accounting standards, particularly in the areas of Financial Instruments: Measurement (FRS 26) and Life Assurance (FRS 27).
The scope of the SORP has also been restricted to entities that are continuing to prepare their financial statements in accordance with UK Generally Accepted Accounting Practice (GAAP).
Peter Vipond, ABI director of financial regulation and taxation, said: “While the focus of accounting is now very much on international financial reporting standards, the ABI SORP is still relevant to insurance entities that prepare their financial statements in accordance with UK requirements.”
He added: “Pending further development by the IASB of a Phase II accounting standard for insurance, the SORP and the current international standard on insurance (IFRS 4) continue to reflect traditional insurance accounting methodology.”
“We are currently working with the International Accounting Standards Board to ensure a satisfactory outcome to the ‘Phase II' project on insurance.”
