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
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