Wed 01 May 2019
At the April 2019 meeting, the IASB concluded its deliberations on amendments to IFRS 17 Insurance Contracts (see previous blog articles for further details) and authorised its staff to start the drafting of the exposure draft.
The IASB has also confirmed that it intends to amend the effective date of IFRS 17, deferring it to annual periods beginning on or after 1 January 2022 and extending by a year the option to continue to apply IAS 39 (subject to conditions) to the financial instruments of insurers. Early application of the amended IFRS 17 will be permitted.
Click here for the official announcement of these decisions on the IASB’s website.
Following this meeting, the Due Process Oversight Committee (DPOC) approved the reduction of the consultation period from 120 to 90 days.
The exposure draft is expected to be published at the end of June.
The IASB also took the opportunity to:
Click here to view the agenda papers on the various topics addressed by the IASB.
Finally, the Transition Resource Group for IFRS 17 (TRG), the discussion forum for IFRS 17 implementation issues which has already met four times since February 2018, held its final session on 4 April. Topics considered by the TRG include insurance contracts with a financing component (see agenda paper 1). It also reviewed various issues submitted which did not meet the criteria for inclusion in its agenda, or which are already being addressed by other, parallel, IASB initiatives, such as the future exposure draft (see agenda paper 2). No new TRG meetings are planned at this stage.
Click here to access the official podcast and meeting summary of the April TRG meeting.
On 26 June 2019, the IASB published the exposure draft: ED/2019/4 Amendments to IFRS 17, proposing the long-awaited amendments to the insurance contracts standard. Set out below is a summary of the key points of the exposure draft covering what the concerns are with the existing requirements and how the IASB proposes to amend IFRS 17 […]
The Financial Reporting Council (“FRC”) has issued Amendments to FRS 101 – 2018/19 cycle, which prohibit insurers applying FRS 101 Reduced Disclosure Framework (“FRS 101”) in their financial statements when IFRS 17 Insurance Contracts (“IFRS 17”) becomes effective. Why – what’s the background? FRS 101 requires entities to apply the recognition and measurement requirements of […]
A few final technical issues prior to publication of the ED At the May 2019 meeting, the IASB discussed a few final technical issues on the proposed amendments to IFRS 17 Insurance Contracts prior to finalising the exposure draft, which is expected imminently. The Board tentatively decided: to specify criteria that must be met for an insurance […]
At the March meeting, the IASB continued its discussions on the amendments necessary to IFRS 17 Insurance Contracts, which are looking to address the criticisms raised by stakeholders and thus to more faithfully represent the performance of insurance contracts in financial statements. At the end of this meeting the IASB tentatively decided to add additional […]
At the February meeting, the IASB continued its discussions on the amendments necessary to IFRS 17 Insurance Contracts, which are looking to address the criticisms raised by stakeholders and thus to more faithfully represent the performance of insurance contracts in financial statements. At the end of this meeting the IASB tentatively decided to add additional […]
At the January meeting, the IASB decided to make amendments to IFRS 17 Insurance Contracts, relating to the following topics: reinsurance contracts purchased by a primary insurer (reinsurance contracts held); and amortisation of the contractual service margin (CSM) in profit or loss for contracts that include an investment return service.These changes are intended to address criticisms […]
1. Group insurance policies Under a group insurance policy an entity provides insurance coverage to members of an association or to customers of a bank (members or customers that purchase insurance coverage are referred to as ‘certificate holders’). Some of those policies give the entity the right to terminate the coverage for all certificate holders […]
The September Transition Resource Group (TRG) meeting provided further clarity in a range of areas related to insurance under IFRS 17. Our analysis addresses the points that we expect will affect most insurers. Other topics discussed applicable to mutuals and associations will be analysed in a separate blog. 1. Factors that can affect the length […]
A year and a few months after the issue of the new insurance contracts standard, insurers (issuers of insurance contracts) are recalibrating their IFRS 17 implementation approaches based on the latest technical developments and positions adopted by their peers. Latest developments include the IASB’s transition resource group discussions, the recent clarifications to IFRS 17 discussed […]
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