KPMG insurance conference on tax and accounting issues

The KPMG Academy has organised a conference on insurance with Partner Audit Suren Rajakarier, Principal Tax and Regulatory Suresh Perera and Director Audit Raditha Alahakoon, making presentations followed by a panel discussion with HNB Assurance Managing Director Deepthi Lokuarachchi, and Softlogic Life Insurance Chief Financial Officer Nuwan Withanage. The conference will be held on 3 December from 1:30 to 5:30 p.m. at Ramada Hotel. 

IFRS 17 ‘Insurance Contracts’ Standard introduces a comprehensive new accounting model that will give users of financial information, a whole new perspective on insurers’ financial statements. The new standard heralds an end to the lack of comparability in the insurance sector and increases transparency on the profitability of new and in-force business and gives users more insight into an insurer’s financial health. Every insurer is certain to see impacts on its reported numbers in one way or another, and implementing the standard will require substantial efforts. This program is part of the IFRS 17 Insurance Contracts training program and will provide you with an overview in relation to the following:

The general measurement model and when modifications may be applied to it for certain types of insurance contracts.

How an entity will present and disclose their results under the new standard including an understanding of the transition options to change from its current accounting to the new IFRS 17.

Insurance companies, both life and general have faced many tax issues in the recent past. Up until the introduction of the new Inland Revenue Act in 2018 Sri Lanka has been following I-E formula for the computation of the income tax liability.  In order to fill the gap in the law and to address the issues arising due to the changed business model, the provisions of the Inland Revenue Act No. 24 of 2017 were introduced. In the new Inland Revenue Act a home grown formula has been introduced for the computation of income tax liability of the life assurance companies. 

This conference will draw attention on common tax issues faced by the insurance industry.