The UK Financial Reporting Council (FRC) published new guidance to assist practitioners in their growing use of artificial intelligence and machine learning (AI/ML) in actuarial work.
Specifically, the revised Technical Actuarial Guidance: Models aims to support practitioners applying the principles-based Technical Actuarial Standard (TAS) 100, providing examples relating to model bias, understanding and communication, governance, and stability when using AI/ML models in technical actuarial work.
“As the use of artificial intelligence and machine learning increases in actuarial work, it remains essential to keep pace with the rise of new technologies and emerging opportunities,” Mark Babington, the FRC’s executive director of regulatory standards, said in a news release.
IAASB adopts new approach to technology
The International Auditing and Assurance Standards Board adopted a Technology Position that represents a “significant step forward in the IAASB’s ongoing commitment to enhancing the quality and relevance of its standards in the face of rapid technological advancement”, according to a news release.
“The pace of technological change presents the audit and assurance profession with opportunities and challenges,” IAASB Chair Tom Seidenstein said. “Our new Technology Position reflects the IAASB’s commitment to ensuring our standards evolve alongside these developments. We are setting a course that promotes innovation while safeguarding quality and consistency in audits and assurance globally.”
The IAASB is conducting a gap analysis to ensure its current standards align with technological advancements, according to the release.
Review complete: IFRS 15 is working as intended
An IASB review found that IFRS 15, Revenue From Contracts With Customers, is providing investors with useful information.
The standard, issued in 2014 to improve the reporting of revenue, was developed with the US Financial Accounting Standards Board (FASB) to create a consistent approach to revenue recognition across global markets.
Based on the review, the IASB plans to start in late 2025 an agenda consultation to consider:
- How companies decide whether they are the main seller or an agent in a transaction;
- How to report on payments to customers; and
- How IFRS 15 works alongside several other IFRS accounting standards.
— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.