IASB Defers Effective Date for IFRS 17
IASB decided to defer the effective date of IFRS 17 to annual reporting periods beginning on or after January 01, 2023. IASB also decided to extend the exemption in place for some insurers regarding the application of IFRS 9 on financial instruments to enable them to implement both IFRS 9 and IFRS 17 at the same time. The decision to defer the effective date by two years, from the original date to 2023, will enable insurers worldwide to implement the new standard at the same time, which IASB considers to be beneficial for investors, insurers, and other stakeholders. IASB expects to issue the amendments to IFRS 17 in the second quarter of 2020.
IASB has, in its previous meetings, confirmed that it will proceed with the proposals outlined in the June 2019 consultation document, albeit with some minor modifications in response to feedback received. IASB also added some additional amendments, again in response to feedback on those proposals. Timely implementation of IFRS 17 is vital to improve the quality and comparability of accounting for insurance contracts. IFRS 17 combines current measurement of the future cash flows with the recognition of profit over the period that services are provided under the contract and presents insurance service results (including presentation of insurance revenue) separately from insurance finance income or expenses. IFRS 17 also requires an entity to make an accounting policy choice of whether to recognize all insurance finance income or expenses in profit or loss or to recognize some of that income or expenses in other comprehensive income.
Keywords: International, Accounting, Insurance, IFRS 17, IFRS 9, Insurance Contracts, Financial Instruments, Effective Date, IASB
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
FSI Paper Reviews Fit and Proper Assessment Criteria at BanksRelated Articles
EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS Amends Notice on Related Party Transactions of Banks
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB Amends Guideline on Euro Short-Term Rate
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA Consults on Standards Related to FRTB-SA
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA Proposes Rules Related to IRB Approach for Credit Risk
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
BoE Outlines Regulatory Treatment of Recovery Loan Scheme of UK
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB Addresses G20 on COVID Measures, TBTF Reforms, and Climate Risks
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI Unwinds Temporary Increase to Covered Bond Limit for Banks
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
EU Amends CRR and Securitization Regulation in Response to Pandemic
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).
HM Treasury Announces G7 Agreement on Green Agenda Ahead of COP26
HM Treasury announced that G7 Finance Ministers and Central Bank Governors met ahead of COP 26, the 2021 UN Climate Change Conference, and agreed on green agenda.
