IFRS 4 - Insurance Contracts

IFRS 4 is an interim standard that introduced basic requirements for accounting for insurance contracts before the full model in IFRS 17. It allowed many existing practices but required certain disclosures and tests for adequacy of insurance liabilities.

IFRS 4 was an interim insurance standard allowing many existing practices before IFRS 17, but requiring key disclosures and liability adequacy testing.

- Used when applying IFRS/IAS requirements for recognition, measurement, presentation, or disclosure.
- Used to justify accounting treatments in working papers and financial statement notes.

- Example: When preparing year-end reporting, management applies **IFRS 4 - Insurance Contracts** to determine the correct IFRS treatment and disclosures.

- Why it matters: Ensures compliance with IFRS, improves comparability across periods and entities, and reduces financial reporting risk.