Insurance Industry Practices in the Development of IFRS 17 - Does the ED 2019 show a technical, cultural, and political "fit"?
(2020) BUSN79 20201Department of Business Administration
- Abstract
- This thesis project examines the Exposure Draft issued in 2019 of the IFRS 17 - Insurance Contracts. The purpose is to determine to what extent and in which aspects the amendment is reflecting the industry. To do this the Ansari et al.’s (2010) framework will be used. In this sense, two research questions are studied: In which aspects, is IFRS 17 reflecting and covering the needs and complexity of the insurance industry? and How do Technical, Cultural, and Political fit interact with each other?
We conducted a qualitative research strategy opting for a content analysis approach. Comment letters sent in response to the ED of 2019 were used as main sources.
The IASB due process in the development of an accounting standard is discussed,... (More) - This thesis project examines the Exposure Draft issued in 2019 of the IFRS 17 - Insurance Contracts. The purpose is to determine to what extent and in which aspects the amendment is reflecting the industry. To do this the Ansari et al.’s (2010) framework will be used. In this sense, two research questions are studied: In which aspects, is IFRS 17 reflecting and covering the needs and complexity of the insurance industry? and How do Technical, Cultural, and Political fit interact with each other?
We conducted a qualitative research strategy opting for a content analysis approach. Comment letters sent in response to the ED of 2019 were used as main sources.
The IASB due process in the development of an accounting standard is discussed, together with the implications on the legitimacy of the Board, the political aspect, and the final users (Young, 2006). Later, different adaptation frameworks are discussed and analyzed: Bromwich (1980) and Kats (1999) are used to introduce the main aspects of an adaptation process and their limitations for our purpose are highlighted. Lastly, Ansari et al. (2010) framework is discussed and its characteristics of dynamic fits are analyzed and adapted to our purpose of research.
The analyzed data and comment letters allow us to analyze how the practices in the insurance industry are reflected in the standard based on the needs of respondents. The categorization of results into the framework will result in a common connection between the three “fits”.
We found that the amendments in the ED 2019 are reflecting the insurance industry in most of its important aspects. The participants agreed on some common issues that the Board could consider increasing transparency and faithful representation. Additionally, the relationship between the three fits studied is interconnected for an accounting setting. The technical fit is reflected by the cultural and political fit; and the political is also a reflection of the technical fit. Finally, the cultural and political fits are slightly reflected between each other. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9021651
- author
- Herrera Pérez, Renata Monserrath and Spagna, Fabio LU
- supervisor
- organization
- course
- BUSN79 20201
- year
- 2020
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Insurance, IFRS 17, Comment Letters, Exposure Draft, Technical, Cultural and Political Fit
- language
- English
- id
- 9021651
- date added to LUP
- 2020-08-21 14:06:36
- date last changed
- 2020-08-21 14:06:36
@misc{9021651,
abstract = {{This thesis project examines the Exposure Draft issued in 2019 of the IFRS 17 - Insurance Contracts. The purpose is to determine to what extent and in which aspects the amendment is reflecting the industry. To do this the Ansari et al.’s (2010) framework will be used. In this sense, two research questions are studied: In which aspects, is IFRS 17 reflecting and covering the needs and complexity of the insurance industry? and How do Technical, Cultural, and Political fit interact with each other?
We conducted a qualitative research strategy opting for a content analysis approach. Comment letters sent in response to the ED of 2019 were used as main sources.
The IASB due process in the development of an accounting standard is discussed, together with the implications on the legitimacy of the Board, the political aspect, and the final users (Young, 2006). Later, different adaptation frameworks are discussed and analyzed: Bromwich (1980) and Kats (1999) are used to introduce the main aspects of an adaptation process and their limitations for our purpose are highlighted. Lastly, Ansari et al. (2010) framework is discussed and its characteristics of dynamic fits are analyzed and adapted to our purpose of research.
The analyzed data and comment letters allow us to analyze how the practices in the insurance industry are reflected in the standard based on the needs of respondents. The categorization of results into the framework will result in a common connection between the three “fits”.
We found that the amendments in the ED 2019 are reflecting the insurance industry in most of its important aspects. The participants agreed on some common issues that the Board could consider increasing transparency and faithful representation. Additionally, the relationship between the three fits studied is interconnected for an accounting setting. The technical fit is reflected by the cultural and political fit; and the political is also a reflection of the technical fit. Finally, the cultural and political fits are slightly reflected between each other.}},
author = {{Herrera Pérez, Renata Monserrath and Spagna, Fabio}},
language = {{eng}},
note = {{Student Paper}},
title = {{Insurance Industry Practices in the Development of IFRS 17 - Does the ED 2019 show a technical, cultural, and political "fit"?}},
year = {{2020}},
}