BC7 The Board considered whether the following approaches could be used to account for insurance contracts:

(a) applying generally applicable IFRS Standards (see paragraphs BC9-BC12); and

(b) selecting an existing model for accounting for insurance contracts (see paragraphs BC13-BC15).

BC8 The paragraphs that follow explain why the Board rejected these approaches and developed a new Standard for insurance contracts.

Applying generally applicable IFRS Standards

BC9 Insurance contracts are excluded from the scope of many existing IFRS Standards that might otherwise apply to such contracts, including Standards on:

(a) revenue (see IFRS 15 Revenue from Contracts with Customers);

(b) liabilities (see IAS 37 Provisions, Contingent Liabilities and Contingent Assets); and

(c) financial instruments (see IFRS 9 Financial Instruments and IAS 32 Financial Instruments: Presentation).

BC10 If the Board extended the scope of existing IFRS Standards to include insurance contracts, an entity would need to: