Might be a bit of a long shot, but does anybody on here have experience of accounting for insurance contracts whether it's IFRS 17 or US GAAP? We have a fair amount of indemnities that are given to directors of subsidiaries on their appointment. We give these because directors can be personally be liable for potential legal claims resulting from their actions over the duration of their appointment and beyond. So it's basically an agreement that the organisation will pick up the tab should that happen. So there's an air of 'insurance' about them.
My thinking is that these are out of scope on the basis that the substance of them is more terms and conditions of appointment rather than insurance contracts and that the exposure to the risk only exists because of the appointment rather than an insurance risk they were already exposed to (which is a criteria of IFRS 17).
Has anybody else had/have similar indemnities and whether they were ruled in or out of scope?
My thinking is that these are out of scope on the basis that the substance of them is more terms and conditions of appointment rather than insurance contracts and that the exposure to the risk only exists because of the appointment rather than an insurance risk they were already exposed to (which is a criteria of IFRS 17).
Has anybody else had/have similar indemnities and whether they were ruled in or out of scope?