Cover for The Patriot on Sunday
214,352
The Patriot on Sunday

The Patriot on Sunday

A Sunday broadsheet newspaper that focuses on business and politics. It started publishing on Sunday

The Patriot on Sunday

1 day ago

The Patriot on Sunday
MIKE MOTHIBI AT HIS FINAL RESTING PLACEMultitudes of people attended Veteran journalist Mike Mothibi's funeral in Kanye this morning, with speakers proclaiming the good hard working man he was.He leaves behind three children, one boy and two girls and six siblings - four brothers and two sisters. ... See MoreSee Less

Photo

View on Facebook
· Share

Share on Facebook Share on Twitter Share on Linked In Share by Email

The Patriot on Sunday

1 day ago

The Patriot on Sunday
Who will be on the Court of Appeal bench to hear & determine IEC appeal against UDC? *ADAM PHETLHE It is generally agreed that the case between Umbrella for Democratic Change (UDC) and the Independent Electoral Commission (IEC) is that of exceptional public importance. As a consequence, the case has so far generated a lot of public interest in terms of looking at all its optics. I predict exceptional public interest will continue way beyond the conclusion of the case. So who amongst the present Justices of Appeal will make the cut? It is difficult to say with a measure of certainty who will make the cut but to predict. Depending on the number of Justices required for this expedited appeal, I predict the following to make the cut. Justices Tebogo Tau, Isaac Lesetedi, Mercy Garekwe, Lackvinder Singh & Leatile Dambe. Former South Africa Constititional Court Justice Bess Nkabinde could also make the cut. All the above local Justices have sat on the bench in high profile cases notably last year's DIS appeal with respect to the search warrant for State House 4, the 'contested' official residence of former President Khama. In this case where there were 5 Justices, Justices Tau, Lesetedi & Singh ruled against the DIS while Justices Garekwe & Dambe dissented. It is my belief that Justices decide matters based on what evidence/facts are before them. That some ruled this or the other way in previous cases is, for lack of a better word, inconsequential. The Chief Justice has sat on some appeal cases I have had sight of. I think he will be disqualified in this one because he is party to an application on another leg of the UDC/IEC case. It will be interesting to see if Justice Tau will make the cut owing to a comment she made when delivering judgement on Wednesday with respect to IEC's request to have its appeal expedited. That comment (and I am paraphrasing) had to do with the intrusive nature UDC’s observers would cause if allowed to observe & monitor voter registration exercise. I believe this comment has already rendered her conflicted to sit in the upcoming appeal proceedings. Time will tell as to who will be on the bench when the appeal proceedings begin on Monday 11 December 2023. Or, will it be new faces? ... See MoreSee Less

Photo

View on Facebook
· Share

Share on Facebook Share on Twitter Share on Linked In Share by Email

The Patriot on Sunday

2 days ago

The Patriot on Sunday
#Available IN STORES #grabyourcopy #frontpagethisweek Main Headline: KHAMA OR BOKO?♦️ BPF prefers Khama as UDC chief campaigner FOR A DETAILED REPORT GRAB A COPY OF THE PATRIOT ON SUNDAY NEWSPAPER IN STORES OR FOR SUBSCRIPTION VISIT: www.thepatriot.co.bw ... See MoreSee Less

Photo

View on Facebook
· Share

Share on Facebook Share on Twitter Share on Linked In Share by Email

The Patriot on Sunday was live.

2 days ago

The Patriot on Sunday
5TH KUSI IDEAS FESTIVAL UNDERWAY AT ROYAL ARIA IN TLOKWENG.#ikanyerona#mindsetchange#kgasoyapopota ... See MoreSee Less

Video

View on Facebook
· Share

Share on Facebook Share on Twitter Share on Linked In Share by Email

The Patriot on Sunday

3 days ago

The Patriot on Sunday
Good bye MikeMesh Moeti bids his friend Mike Mothibi farewell. ... See MoreSee Less

Video

View on Facebook
· Share

Share on Facebook Share on Twitter Share on Linked In Share by Email

  • Towards a Brighter Tomorrow: India’s G20 Presidency and the Dawn of a New MultilateralismNovember 30, 2023
    Prime Minister of India Narendra Modi Today marks 365 days since India assumed the G20 Presidency. It is a moment to reflect, recommit, and rejuvenate the spirit of ‘Vasudhaiva Kutumbakam, ‘One Earth, One Family, One Future.’ As we undertook… Read more: Towards a Brighter Tomorrow: India’s G20 Presidency and the Dawn of a New Multilateralism
  • BNF get 15 UDC constituencies November 29, 2023
    BAKANG TIRO editors@thepatriot.co.bw The first phase of constituency allocation between Umbrella for Democratic Change (UDC) and its negotiating parties, Botswana Patriotic Front (BPF) and Alliance for Progressives (AP) has seen Botswana National Front (BNF) emerging as the biggest winner… Read more: BNF get 15 UDC constituencies 
  • BHP launches Tshireletso StudyNovember 28, 2023
    . Long-Acting Injectable Cabotegravir for HIV prevention in newly delivered mothers in Botswana The Botswana Harvard Health Partnership (BHP) has today launched the ‘Tshireletso’ Study which is offering long-acting injectable cabotegravir (CAB-LA) to post-partum women immediately after delivery to… Read more: BHP launches Tshireletso Study
  • Orange Botswana CEO, Nene Maïga, Wins Female Innovator of the Year Award November 24, 2023
    Orange Botswana celebrates the business’ CEO, Nene Maïga, on her prestigious Female Innovator of the Year Award 2023, received at the Africa Tech Festival Awards in Cape Town, South Africa. This distinguished accolade recognises the exceptional contributions of women in the fields of technology, media, and telecommunications… Read more: Orange Botswana CEO, Nene Maïga, Wins Female Innovator of the Year Award 
  • Govt’s P1.4billion Tati land headacheNovember 23, 2023
    BAKANG TIRO editors@thepatriot.co.bw The 45 000 hectares of land recently acquired by Botswana government from Tati Company to the tune of P1.4 billion, will address acute land shortage in Northeast district, the Minister of Lands and Water Affairs (ML&WA),… Read more: Govt’s P1.4billion Tati land headache
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
  • Login
  • Register
Sunday, December 10, 2023
17 °c
Gaborone
21 ° Tue
22 ° Wed
24 ° Thu
26 ° Fri
The Patriot On Sunday
Advertisement
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
Cart / $0.00

No products in the cart.

  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
The Patriot On Sunday
No Result
View All Result
Home Business

A Culture of Compliance and Financial Reporting Best Practice

patriot by patriot
November 21, 2020
in Business
250
0
491
SHARES
1.4k
VIEWS
ShareShareShare

As the complexity and volatility of the business environment has increased, the demand for improvements in the quality of financial information from investors and other decision makers has risen in tandem. Unsurprisingly therefore, the topic of changes to International Financial Reporting Standards (IFRS) has  become increasingly prevalent. However, before delving into what these changes  mean for an organisation, it is perhaps useful to first provide an overview of the nature and purpose of IFRS.

For anyone in the accounting or finance fields, this acronym has become a common phrase critical to any financial reporting undertaken by an organization. International Financial Reporting Standards are developed and issued by the International Accounting Standards Board (IASB) and provide guidance on how financial statements should be prepared and disclosed. They provide a framework for consistent and comparable information which ultimately helps investors, regulators and other interested parties, make decisions. In other words, as a global standard, they provide a level playing field amongst companies for reporting financial performance. This is a matter not only of compliance, but also of corporate governance, and thus an integral part of how any financial services sector business ought to be doing business.

As an indication of the pace of change, in the last three years, over twenty new or amended accounting standards have come into effect. The insurance industry is  currently in the process of implementing IFRS 17, which speaks specifically to insurance contracts, replacing its predecessor, IFRS 4. The standard will come into effect from 2023 and will significantly change the accounting process for insurance contracts and investments contracts with discretionary participation features. This new standard has been described as the single largest change in insurance accounting for almost a generation.  

The standard is intended to provide a more detailed and rigorous framework for  the measurement and recognition of key insurance related values and will significantly change the way in which insurers measure and recognize insurance liabilities, revenue and profit. It will also change the presentation of the income statement and statement of accounting position and will require a significant number of new disclosures in the financial statements. The standard requires more detailed measurement of insurance related cashflows, introduces new methodologies for measuring and recognizing insurance contact liabilities and introduces a number of new concepts such as insurance contract margin and risk margin.

All of these changes are meant to create greater visibility of the relationship between the provision of insurance services and the recognition of revenues and expenses relating to the provision of these services and to align the recognition of revenue and profit with non-insurance businesses.  The overarching intent of the standard is to reduce the variability of results due to differencing accounting treatments employed by various insurance entities and to  improve the comparability of financial results between insurance businesses as well as between insurance and non-insurance businesses.

Although its purpose is relatively simple conceptually, the impact on affected organisations, particularly internally, will be massive. The practical adoption of the standard will require significant changes to accounting processes and may also require operational process changes to ensure, for example, that the required information is captured during the sales and client onboarding stage. Greater integration across the various functions of the business is a key factor . The impact on long-term and life insurers is much more significant compared to short-term insurance. There also needs to be sufficient training of relevant stakeholders, including staff and investors.

Against this background, it should be clear that it is of paramount importance that professionals in the sector are already in the process of ensuring they are well-versed with IFRS 17.

Let us broadly consider the current state of readiness of the industry. In their report, In it to win it, KPMG gathered, analysed, and benchmarked data from 160 insurance companies across 30 different countries on their journey to IFRS 17 implementation. According to the report, larger companies are significantly more likely to be further along and have done so by parallel running their current system of reporting with IFRS17, at least one year before going live. Of these 160 companies, only 8% of the insurers surveyed plan to implement after 2021, due to delayed local adoption or the exploration of the standard to increase comparability with global peers.

Some partners who will be affected by the implementation of IFRS 17 include the regulator; NBFIRA (Non-Bank Financial Institutions Regulatory Authority) and BURS (Botswana Unified Revenue Services), who will need to be engaged extensively as we now need to look at new models of compliance. Consideration will also need to be given to potential effects on the end insurance user, the policyholder, and to ensure that they are not disadvantaged by any changes brought about for operational or technical reasons.

Undoubtedly complex, there is certainly a lot of understanding which needs to be gained around the implementation of the new standard, hence the importance of running parallel against existing systems, as a means to determine the effects of changes brought about by the standard.  There is, however, plenty to look forward to as an industry looking to improve its significance in the global economy. Internally, it provides an opportunity of insurance businesses to review and ensure the quality of their data and apply consistent principles to the production of financial information. More broadly its advantages include greater transparency by, for example, distinguishing between, profitable and non-profitable groups of contracts, enhancing investor understanding of and confidence in the business, and facilitates long-term financial stability

Financial reporting standards are ever-changing because they evolve just as the needs, wants and capabilities of the industry and its stakeholders evolve. They keep businesses ethical, current, and agile for the benefit of the industry and the customer.  Beyond pure compliance, the standard is a matter of principle and accurately highlights the sustainability of a business.  As we prepare for IFRS 17, the question is how businesses in the insurance sector are gearing themselves up to do more and truly leverage the opportunity to embrace and strategically purpose themselves towards better deliverance of insurance solutions for life and more.  It is about, rationalising and streamlining processes, and creating good habits of governance, and a culture of compliance and financial reporting best practice.

Related

Tags: BUSINESSfinancial

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe
  • Towards a Brighter Tomorrow: India’s G20 Presidency and the Dawn of a New MultilateralismNovember 30, 2023
    Prime Minister of India Narendra Modi Today marks 365 days since India assumed the G20 Presidency. It is a moment to reflect, recommit, and rejuvenate the spirit of ‘Vasudhaiva Kutumbakam, ‘One Earth, One Family, One Future.’ As we undertook… Read more: Towards a Brighter Tomorrow: India’s G20 Presidency and the Dawn of a New Multilateralism
  • BNF get 15 UDC constituencies November 29, 2023
    BAKANG TIRO editors@thepatriot.co.bw The first phase of constituency allocation between Umbrella for Democratic Change (UDC) and its negotiating parties, Botswana Patriotic Front (BPF) and Alliance for Progressives (AP) has seen Botswana National Front (BNF) emerging as the biggest winner… Read more: BNF get 15 UDC constituencies 
  • BHP launches Tshireletso StudyNovember 28, 2023
    . Long-Acting Injectable Cabotegravir for HIV prevention in newly delivered mothers in Botswana The Botswana Harvard Health Partnership (BHP) has today launched the ‘Tshireletso’ Study which is offering long-acting injectable cabotegravir (CAB-LA) to post-partum women immediately after delivery to… Read more: BHP launches Tshireletso Study
  • Orange Botswana CEO, Nene Maïga, Wins Female Innovator of the Year Award November 24, 2023
    Orange Botswana celebrates the business’ CEO, Nene Maïga, on her prestigious Female Innovator of the Year Award 2023, received at the Africa Tech Festival Awards in Cape Town, South Africa. This distinguished accolade recognises the exceptional contributions of women in the fields of technology, media, and telecommunications… Read more: Orange Botswana CEO, Nene Maïga, Wins Female Innovator of the Year Award 
  • Govt’s P1.4billion Tati land headacheNovember 23, 2023
    BAKANG TIRO editors@thepatriot.co.bw The 45 000 hectares of land recently acquired by Botswana government from Tati Company to the tune of P1.4 billion, will address acute land shortage in Northeast district, the Minister of Lands and Water Affairs (ML&WA),… Read more: Govt’s P1.4billion Tati land headache
The Patriot On Sunday

© 2022 Copyright The Patriot On Sunday - Inspired by Search Mart.

Navigate Site

  • About Us
  • Advertise
  • Disclaimer
  • Contact Us

Follow Us

No Result
View All Result
  • Login
  • Sign Up
  • Cart
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders

© 2022 Copyright The Patriot On Sunday - Inspired by Search Mart.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?