On Sep. 23, PHI INS proposed rules for mutual benefit associations.
PHI INS consulted on financial reporting framework for mutual benefit associations.
(Advisory issued on Sep. 23, 2021; summary added to Reg-Track on Oct. 11, 2021.)
Framework
In 2018, implementation of gross premium valuation (GPV) for MBAs until such time that PHI INS issues a new financial reporting framework for MBAs was deferred.
Since MBAs are still using net premium valuation (NPV) approach in valuation of policy reserves, there is a need to shift to GPV to align with life insurance companies' model.
IASB also issued new IFRS, and there is also a need to include these standards in the new framework to ensure consistent application of rules with international standards.
Effectiveness
MBAs are requested to provide comments on stipulated documents by Dec. 31, 2021.
May. 2022 New Reporting Framework
On May 19, 2022, PHI INS issued circular on new financial reporting framework (FRF) for MBAs to ensure the transparent and consistent application of accounting principles.
Document dated May 19, 2022, was received on Jun. 14, 2022 due to a fixed feed.
Need to include new IFRS standards in the new FRF to ensure consistent application of such rules and/or guidance with internationally accepted accounting standards.
From Jan. 1, 2025, the Standard Chart of Accounts (SCA) for MBAs under cir 2014-41 and cir 2021-04 shall be replaced by a new FRF-SCA, as presented in Annex A.
Unless specified by amended lnsurance Code and/or lC-issued circulars, rules and regulations, recognition and measurement of accounts in the new FRF-SCA shall be in accordance with accepted accounting principles in the Philippines at reporting date.
