IFRS 4 is an International Financial Reporting Standard (IFRS) issued by the International Accounting Standards Board (IASB) providing guidance for the accounting of insurance contracts.
[1] Paragraph 35 of IFRS also applies the standard to financial instruments with discretionary participation features.
[4] Generally, IFRS 4 permitted companies to continue previous accounting practices for insurance contracts, but did enhance the disclosure requirements.
[6] Board members James J. Leisenring, Mary E. Barth, Robert P. Garnett, Gilbert Gélard and John T. Smith dissented because they disagreed with the temporary exemption from the accounting policy changes of IAS 8.
"[6] Leisenring, Barth and Smith also objected to the inclusion of financial instruments with discretionary participation features within IFRS 4 rather than within the accounting guidance for financial instruments (which at the time was IAS 39), and Smith raised other objections as well, including the exception to separately measure embedded derivatives that meet the definition of insurance.