Financial Reporting and Challenges of Implementing IFRS 17: Insurance Companies in Bangladesh

Purpose: This study aims to assess IFRS adoption, financial reporting practices, and the challenges of implementing the new IFRS 17 in insurance companies listed on the DSE in Bangladesh. Research design, data, and methodology: Cross-sectional data from 56 listed insurance companies for the years 2019-2023 were collected, and content analysis was performed to evaluate IFRS adoption and financial reporting practices. A structured questionnaire survey yielding 120 responses was used, followed by a structural equation model analysis to identify the challenges in implementing IFRS 17. Results: The study found that listed insurance companies adopt between 4 and 6 IFRS, with some implementing up to 12 IFRS, showing an upward trend in IFRS adoption. However, IFRS is not fully applied in preparing financial statements, as the Insurance Acts of 2010 and 1938 are still in use. The challenges in implementing IFRS 17 include conflicting regulations, data management issues, the need to modify accounting systems and processes, the need for human resource training on IFRS, and the misalignment between the current regulatory framework and IFRS. Conclusions: Insurance companies must address these challenges to effectively implement IFRS 17 in their financial reporting.