IASB has voted to propose a one-year deferral—to 2022—of the effective date for the new insurance contracts standard IFRS 17. IASB also decided to propose extending to 2022 the temporary exemption for insurers to apply the financial instruments standard IFRS 9; the intention is to ensure that both IFRS 9 and IFRS 17 can be applied at the same time. The proposed deferral will be subject to public consultation, which is expected next year.
IASB has been proactively working to support insurers and others with the transition to the new insurance contracts standard, including through establishing a Transition Resource Group and providing education materials. As part of that process, it has sought to understand any concerns companies may have about their ability to get ready for the new insurance contracts Standard by the 2021 effective date. The decision to propose a one-year deferral at this meeting acknowledges the uncertainty that arises from the Board’s discussions about IFRS 17, while being responsive to comments from stakeholders that implementation should not be unduly disrupted. By making this decision, IASB has provided a clear direction, which will help companies with their planning.
The Board expects to discuss the merits of potential amendments to the standard during its December meeting. The criteria against which any possible amendment would be considered were agreed at the October meeting and can be found in that month's Update.
Keywords: International, Accounting, Insurance, IFRS 9, IFRS 17, Deferral of Effective Date, Insurance Contracts, Financial Instruments, IASB
Previous ArticlePRA Proposes to Delay Termination of Reports FSA047 and FSA048
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.