Unveiling the Influence of IFRS 17 Insurance Contracts on the Quality of Financial Reports: Insights from Finance Professionals

Purpose: Investigating the perspectives of finance professionals on the influence of Implementing IFRS 17 Insurance Contracts on the quality of financial report. Design and Methodology: This study utilized a self-administered questionnaire to collect data from finance professionals employed in insurance companies. The survey samples were drawn from the target population using a combination of conventional and snowball sampling techniques. The study and survey were conducted in India. A total of 532 questionnaires were distributed, resulting in 237 received responses. Out of these, 231 responses were considered complete and used for further data analysis. Findings/Results: The study's findings indicate that the application of IFRS 17 will result in a substantial impact on the relevance, faithful representation, comparability, understandability, verifiability, and timeliness of financial reports. Furthermore, it was found that implementing IFRS 17 enables investors and decision-makers to make informed decisions. Suggestions: This study carries implications for insurance companies and policymakers, particularly regarding the significance of IFRS 17 as a major accounting change in the insurance industry in recent decades. It underscores the importance for insurance companies and policymakers to gain a comprehensive understanding of the business and technical aspects associated with IFRS 17. By aligning their finance transformation programs with IFRS 17 compliance, insurance companies can efficiently and strategically achieve compliance while maximizing the benefits of the new standard. Originality/Value: This study contributes to the existing literature on IFRS 17 by developing a unique conceptual framework. Building upon the variables utilized in the study by Dahiyat and Owais (2021), the present study introduces a new independent variable, enabling investors and participants to make decisions. Consequently, this study brings significant novelty by incorporating seven dependent variables. The findings presented in this paper contribute to the understanding of IFRS 17 and its implications. Furthermore, this study holds particular significance as it is the first empirical investigation conducted in the global context, providing valuable insights into the implementation of IFRS 17. Limitations/Implications: Due to the novelty of the topic and limited research in this area, there is a scarcity of comparative studies available. Moreover, the availability of experienced financial professionals well-versed in the impact of IFRS 17 is limited, as they are still in the process of learning and adapting to the new standard.