Insurance companies are selling insurance contracts which promise the insured against the insurance premium that insurance company will cover the sum if an unpleasant event in time of insurance coverage in terms of policy happens to the insured. Purposes of financial reporting of insurance company are solvency reporting and providing information about the insurance company's performance. The aim of International Financial Reporting Standard for Insurance Constracts is to make reporting informative and consistent. Since currently valid interim International Financial Reporting Standard 4 - Insurance contracts is lacking industry, international comparability and also comparibility of companies inside the country, new International Finanacial Reporting Standard 17 - Insurance constracts that eliminates those weaknesses, will be effective from the 1st January 2021.
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