IFRS Publishes Article for Investors on Proposed Amendments to IFRS 17
IFRS published an Investor Perspectives article by Nick Anderson, a member of IASB, that offers insight into the new disclosures IASB is proposing as part of a package of targeted amendments to the IFRS 17 on insurance contracts. The article discusses two proposed amendments that would make explaining financial results to investors easier for some insurers. The proposed amendments are new measurement requirements and the accompanying new disclosures relate to the commissions paid on short-term insurance contracts with expected renewals and to the profit recognition on long-term insurance contracts with investment returns.
IASB had issued an exposure draft, in June 2019, that proposed targeted amendments to IFRS 17 to respond to concerns and challenges raised by stakeholders as IFRS 17 is being implemented. IASB proposed targeted amendments to reduce the cost and effort of preparing for IFRS 17 and to make it easier for insurers to explain their financial results to investors. As part of the amendments package, IASB proposed to defer the start date of IFRS 17 to January 01, 2022, giving insurers an extra year to get ready. Deferring the start date by one year reflects a careful balance between the urgent need for investors to have better information about the financial performance of insurers and giving insurers certainty about their IFRS 17 project timelines, in the light of the Board’s decision to consider amending the standard.
Keywords: International, Insurance, Insurance Contracts, IFRS 17, Investor Perspectives, Disclosures, IASB, IFRS
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