FSB Welcomes the New Insurance Accounting Standard IFRS 17
FSB welcomed the final publication of IFRS 17, which is the new accounting standard on insurance contracts. IFRS 17 was identified as a high-priority standard at the FSB Plenary meeting of September 25, 2015. IFRS 17 (issued by IASB) will become effective on January 01, 2021, subject to the relevant endorsement or adoption procedures in IFRS jurisdictions, which provides enough time for insurers to adapt processes, systems, and organizational structures.
IFRS 17 introduces a consistent approach applicable to all insurance contracts in jurisdictions applying IFRS. Insurance obligations will be accounted for using current values, instead of historical cost, benefiting both investors and insurance companies. FSB encourages firms to start the implementation efforts as soon as possible and to engage in an open dialog with IASB on the ways in which the application of IFRS 17 can generate the most relevant information. Insurance regulators should be part of this dialog and may consider best ways to support consistent and practical application of the standard. During the implementation stage, enhanced dialog with auditors and market authorities will also be important. Relevant disclosures from reporting entities should aid in the understanding of the methodologies and assumptions used in developing those estimates.
Related Link: Press Release
Effective Date: January 01, 2021
Keywords: International, Insurance, Accounting, IFRS 17, IASB, FSB
Previous Article
ESMA Expresses Views on EC Proposals on Third-Country RegimesNext Article
DNB Issues Banking Newsletter for November 2017Related Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards