Changing the IFRS 17 implementation game
Estimated reading time: 3 minutes
IFRS 17 will go live in just over a year, on 1 January 2023. For insurers with a 31 December year-end this means that a full set of IFRS 17-compliant accounts needs to be published at 31 December 2023, together with comparatives for the year ending 31 December 2022 and an opening balance sheet at 31 December 2021. Interim reporting may require an earlier deadline.
Through the implementation of financial management tools and ongoing advice over the past two and a half years, PwC has assisted the client with its treasury function and management of liquidity to support and enable improved operational performance. The client has since undertaken multiple turnaround initiatives, including the replacement of its management team, the implementation of firm-wide cost saving initiatives and the appointment of advisors. Debt facilities have been refinanced on a number of separate occasions, with the overall objective of progressing toward a more sustainable capital structure.
As our client’s exclusive debt restructuring advisor, we brought a multidisciplinary team together to help preserve value.
Our client appointed the PwC Capital Advisory and Restructuring Services (CARS) team as its exclusive financial advisor over a two and a half year period to advise on the restructuring/refinancing of its debt and to provide general treasury support.
The client is an agri-processing business active in land management, property development and agriculture and produces a range of refined sugarcane based products, agricultural products and animal feeds in Southern Africa.
- In recent years the client’s financial performance has been negatively impacted by accounting irregularities as well as ongoing operational challenges stemming.
- Consequently, profitability and cash flows have materially declined, resulting in an overgeared balance sheet and liquidity constraints in its multinational operations.
Our role has been to build trust and deliver sustained outcomes, and we have helped our client to progress towards a more sustainable capital structure through multiple turnaround, refinance and strategic initiatives that have preserved value for all stakeholders. Through the implementation of financial management tools and ongoing advice over the past two and a half years, PwC has assisted the client with its treasury function and management of liquidity to support and enable improved operational performance.
Our CARS team, together with multidisciplinary PwC experts from the region, provided services including:
- valuation and impairment testing,
- assistance in connection with going concern assessment,
- technical accounting advice,
- forensic services,
- procurement services
- JSE sponsor services and
- Advisory services in relation to the disposal of assets.
The client has since undertaken multiple turnaround initiatives, including the replacement of its management team, the implementation of firm-wide cost saving initiatives and the appointment of advisors. Debt facilities have been refinanced on a number of separate occasions, with the overall objective of progressing toward a more sustainable capital structure.
The PwC IFRS 17 Managed Service will fill the gap for many insurers who do not have the time and resources available to develop an in-house IFRS 17 capability or to purchase a vendor solution. If you are interested in this service, please contact your local PwC office/Relationship Partner or the central PwC IFRS 17 Managed Service team.
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