The Association of British Insurers has published a new statement of recommended practice or SORP for accounting for insurance business.
The last SORP was issued in 1990. The new version reflects changes in European accounting requirements which became effective in the UK in 1995.
Its main purpose is to narrow the range of accounting practices, to enhance the usefulness of accounting information and provide guidance on certain provisions of the Companies Act 1995.
ABI director Mark Boléat says: "The publication of the new SORP represents a major advance in accounting for insurance business in the UK."