MEASUREMENT OF INSURANCE CONTRACTS ACCORDING TO THE INTERNATIONAL FINANCIAL REPORTING STADARDS 4

The submitted paper deals with the "real" measurement of liabilities arising from insurance contracts. International Financial Reporting Standards (IFRS) seeks to establish several principles that an entity should apply in order to report and provide useful information within its fnancial statements. The prime motivation behind these principles is to allow comparability of financial statements originating from several and different entities. Introduction of the International Accounting Standards Board's (IASB) block measurement model should allow such approach as an insurance contract would be measured based on the present value of expected fulfilment cash flows, risk margin and contractual service margin. According to original assumptions was the IFRS 4 supposed to be concluded long time ago. However, IASB is still in the process of remarks/comments making towards the Exposure draft. The main benefits and advantages of the New IFRS 4 can be seen within its transparency improvements of financial statements. Furthermore, the second phase of IFRS 4 requires more detailed disclosure of all information related to measurement methods within the Notes section