1. A QUICK INTRODUCTORY VIEW ABOUT LINK BETWEEN THE FINANCIAL CRISIS AND THE INTERNATIONAL FINANCIAL ACCOUNTING STANDARDS. The substance of the word "financial crisis" within the context of year 2008. The effect of that crisis on accounting and prudential standards. the response that IASB to the crisis so far. Implication of standards regarding the insurance sector. 1

2. 1. Occurrence of the crisis The background of the crisis, i.e., its beginnings as financial crisis in the Stock Exchange and the way it evolved in the the actual economy as economic crisis The cause:  ENRON, PARMALAT, WORLD COME scandals and decisions of GREENS- PAN and of FED to reduce the rates of interest  The refusal of the American Government to provide LEHMAN BROTHERS with funds;  a financial situation incorrectly disclosed (truncated reportings) and problems of assessment as well, of various assets by the famous « Fair Value ». The reaction of FASB and IASB Institutions that have influenced FASB and IASB – pressure groups: the G20 Group, the Financial Stability Forum (the Financial Stability Board), the Basle committee, Financial Crisis Advisory Group 2

3. 2. Incidences on International Standards The result of pressure:  The review of accounting standards  Working closely with the designers of prudential standards, namely Basle 2 (Bâle 2) for the benefit of credit institutions including banks and Solvency 2 as regards insurance The ASB and FASB have outlined programme of adaptation of the standards – the convergence programme. 3

4. 3. Reactions of th IASB to the appeals of global institutions in the context of the crisis The areas wherein theIASB acts with a view to enhance standards or the establishment of new standards in connection with the economic crisis are as follows:  Researches as regards the Fair Value  Financial instruments, one of the most complex fields within high finance Replacement of IAS 39 by IFRS 9 which consists of: the classification and the assessment of financial instruments; the depreciation and provisions in financial instruments; the cover accountancy ? The classification and the assessment already completed and published The depreciation still being debated under the form of draft of standards (Exposure Draft) The Memorandum of Understanding (MOU) of the FASB and IASB since 2006. 4

5. 4. Involvement in the insurance sector phase 1: options for this intermediary standard phase 2: ending up in a final standard in this sector. Involvement of the crisis in the disign of phase 2  Influence on the‘Due Process’ of phase 2 Some key points are:  The use of the « Fair Value » in the assessment of insurance companies’ assets;  The methodology of depreciation of assets – assessment of provisions by the method of « Expected Loss » (expected losses) rather than the method used by IRFS 4, which is the one of « Incurred Loss » (losses incurred) (IAS 37);  The assessement and the posting of income whose new base will be the notion of contract between the entreprise and its customer (IAS 19 : Employee Benefits) 5

6. 5. Conclusion. The occurrence of the 2008 crisis has had an impact on various international pressure groups. The crisis has reinforced the need to use harmonized concepts in the form of convergent standards without necessarilly being identical. The crucial issue that remains for Africa. Various issues are raised, therefore:  Are new directions for designing and producing standards likely to reduce insurance companies’ risks, as regards financial and accounting information?  How can African companies get involved in the production of standards in the insurance sector?  What strategies can Africans develop so they can better participate in the discussions on use and production of standards, especially in the insurance sector?  Are we just going to be satisfied to be consumers of standards and be consumers by being absent in the design and the production? 6