Featured Product

    OSFI Proposes Changes to Guideline on IFRS 9 as a Result of IFRS 17

    July 26, 2021

    OSFI proposed changes to the guideline on IFRS 9 and the guideline (D-5) on accounting for structured settlements. These changes are a result of the IFRS 17 standard, the effective date for which is for annual periods beginning on or after January 01, 2023. OSFI also proposed to rescind some guidelines as a result of IFRS 17. The OSFI letter sets out, in the Annexes, a summary of the guidelines to be rescinded or amended and the list of guidelines that may be part of a separate track and considered out of scope for this consultation. OSFI also seeks suggestions for guideline amendments not already in progress that may require further refinement to reflect IFRS 17 or IFRS 9. The comment period for this consultation ends on September 15, 2021.

    The D-5 guideline contains reference to the superseded standard IFRS 4, which will be updated to reference IFRS 17. The IFRS 9 Financial Instruments and Disclosures guideline will replace the following:

    • D-1A (replaced by IFRS 9 Financial Instruments and Disclosures Section 3.1)
    • D-1B (replaced by IFRS 9 Financial Instruments and Disclosures Section 3.2)
    • D-6 (replaced by IFRS 9 Financial Instruments and Disclosures Section 3.3)
    • D-10 (replaced by IFRS 9 Financial Instruments and Disclosures Section 1.IV)

    IFRS 9 Financial Instruments and Disclosures Section 1.IV will also update the Fair Value Option annual gross revenue threshold from $62.5 million to $75 million. This aligns with OSFI’s 2023 Draft Capital Adequacy Requirement guideline definition of Small and Medium-sized Entity borrowers in Chapter 5, paragraph 68.  Furthermore, the IFRS 9 Financial Instruments and Disclosures guideline includes the following additional guidance: Section 2.3 - Impairment guidance applicable to Life Insurers. The guidance states that OSFI expects life insurers to limit their use of the more-than-30-days-past-due rebuttable presumption in IFRS 9 paragraph 5.5.11, as a primary indicator of transfer to lifetime Expected Credit Loss (ECL) measurement for material loans. OSFI believes that this guidance will promote sound credit risk practices associated with the implementation and ongoing application of the IFRS 9 ECL accounting framework for life insurers.

     

    Related Links

    Comment Due Date: September 15, 2021

    Keywords: Americas, Canada, Banking, Insurance, IFRS 9, IFRS 17, Disclosures, Insurance Contracts, Financial Instruments, Credit Risk, ECL, Impairment Guidance, OSFI

    Featured Experts
    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    FSB and NGFS Publish Initial Findings from Climate Scenario Analyses

    The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.

    November 15, 2022 WebPage Regulatory News
    News

    FSB Issues Reports on NBFI and Liquidity in Government Bonds

    The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.

    November 14, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    EU Finalizes Rules Under Crowdfunding Service Providers Regulation

    The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.

    November 08, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8596