IASB proposed to amend the insurance contracts standard IFRS 17. The amendments aim to reduce cost of implementing the standard and to make it easier for companies to explain their results when applying the standard. As per the proposal, entities would be required to apply the amended standard for annual reporting periods beginning on or after January 01, 2022, as opposed to the earlier date of January 01, 2021. The comment deadline is September 25, 2019 and IASB plans to publish the finalized amendments to IFRS 17 in mid-2020.
Post stakeholder discussions on the standard that initially issued in May 2017, IASB decided to propose amendments to IFRS 17 to alleviate certain concerns and challenges raised about implementing the standard. The proposed amendments are designed to minimize the risk of disruption to implementation already underway. They do not change the fundamental principles of the standard or reduce the usefulness of information for investors. The exposure draft proposes targeted amendments to IFRS 17 on the following topics:
- Scope exclusions—credit card contracts and loan contracts that meet the definition of an insurance contract
- Expected recovery of insurance acquisition cash flows
- Contractual service margin attributable to investment-return service and investment-related service
- Reinsurance contracts held—recovery of losses on underlying insurance contracts
- Presentation in the statement of financial position
- Applicability of the risk mitigation option
- Deferral of the effective date of IFRS 17 from 2021 to 2022
- Temporary exemption from IFRS 9 on financial instruments
- Transition modifications and reliefs
- Minor amendments in paragraphs BC147−BC163
Comment Due Date: September 25, 2019
Effective Date: January 01, 2022 (Proposed)
Keywords: International, Insurance, Accounting, IFRS 17, IFRS 9, Insurance Contracts, Financial Instruments, Reinsurance, Reporting, IASB
Previous ArticleEU Artificial Intelligence Ethics Checklist Ready for Testing
FSB finalized the toolkit of effective practices to assist financial institutions in their cyber incident response and recovery activities.
HKMA urged authorized institutions to take early action to adhere to the IBOR Fallbacks Protocol, which ISDA is expected to publish soon.
FSB published a global transition roadmap for London Inter-bank Offered Rate (LIBOR).
HM Treasury published a document that summarizes the responses received from a consultation on the approach of UK to transposition of the revised Bank Resolution and Recovery Directive (BRRD2).
HM Treasury published the government response to the feedback received on the consultation for updating the prudential regime of UK before the end of the Brexit transition period.
In a recent statistical notice, BoE announced publication of the reporting schedule for statistical returns for 2021.
EC welcomed the joint declaration by 25 EU member states on building the next generation of cloud in Europe.
PRA published the final policy statement PS22/20, which contains the updated supervisory statement SS12/13 on counterparty credit risk.
FSB published an update on its work to address market fragmentation. FSB is working in this area in collaboration with the other standard-setting bodies.
EBA proposed revisions to the guidelines on major incident reporting under the second Payment Service Directive (PSD2).