IFRS 4, Insurance Contracts, mainly addresses the identification of insurance contracts by an entity that issues these contracts - which is not limited to insurance companies - and limited other recognition and measurement issues. It applies to insurance contracts issued, reinsurance contracts held, and financial instruments issued with a discretionary participation feature. The matter of the actual accounting for insurance contracts is the subject of the IASB's insurance project, which should incorporate IFRS 4 if a new standard is issued. IFRS 4 imposes a liability adequacy test, which requires that at each reporting date the “insurer” must assess whether its recognized insurance liabilities are adequate, using then-current estimates of future cash flows under the outstanding insurance contracts. Under the provisions of IFRS 4, insuring entities must disclose information that identifies and explains the amounts in its financial statements arising from insurance contracts.