IASB Proposes to Update IFRS Taxonomy to Reflect IFRS 17 Amendments
IASB proposed to update the IFRS Taxonomy 2020 to reflect recent amendments to certain IFRS standards, including the IFRS 17 on insurance contracts. The key proposed changes reflect amendments to the new and old insurance contracts standards IFRS 17 and IFRS 4, which were issued in June 2020 and titled "Amendments to IFRS 17 and Extension of the Temporary Exemption from Applying IFRS 9." The comment period for this proposal ends on September 14, 2020.
IASB, in June 2020, had made targeted amendments to the requirements in IFRS 17 in response to the concerns and challenges identified by stakeholders as IFRS 17 was being implemented. The June 2020 change to IFRS 17 amended the effective date of IFRS 17 such that it shall be applied for annual reporting periods beginning on or after January 01, 2023, rather than for annual reporting periods beginning on or after January 01, 2021. Consequently, IASB is proposing to change the effective date of the relevant IFRS taxonomy elements referenced to IFRS 17 from January 01, 2021 to January 01, 2023. IASB is also proposing to change the expiry date of the IFRS taxonomy elements related to IFRS 4 to reflect the amended effective date of IFRS 17.
IASB had also extended the temporary exemption from applying IFRS 9 (which amended IFRS 4) in June 2020. IASB is now proposing to change the expiry date of the IFRS taxonomy elements related to those amendments to IFRS 4 to reflect the amended effective date. The June 2020 amendments to IFRS 9 shall be applied when an entity applies IFRS 17. IASB is also proposing to add two tables to the IFRS taxonomy to reflect two new disclosure requirements related to the transition to IFRS 9. In addition, IASB is proposing to add the effective date of the IFRS taxonomy elements related to the transition to IFRS 9 to reflect the amended effective date of those two amendments. To reflect the amended disclosure requirements of IFRS 17 in the IFRS taxonomy, IASB proposes to:
- Add new IFRS taxonomy elements and one table to the IFRS taxonomy to reflect two new disclosure requirements for insurance acquisition cash flows
- Add two IFRS taxonomy elements and remove one IFRS taxonomy element from the existing tables to reflect the amended disclosure requirements related to recognition of the contractual service margin in profit or loss
- Add one IFRS taxonomy element to an existing table to reflect the amended disclosure related to analysis of insurance revenue
- Amend element labels and documentation labels for the existing IFRS taxonomy elements to reflect the proposed changes to the definitions and requirements in IFRS 17 as amended in June 2020
Comment Due Date: September 14, 2020
Keywords: International, Insurance, IFRS 17, Insurance Contracts, IFRS 9, Financial Instruments, IFRS 4, IFRS Taxonomy, Reporting, IASB
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