Featured Product

    OSFI Advises on IFRS 17 Transition and Progress Report Requirements

    May 04, 2018

    OSFI issued and advisory for the federally regulated insurers and insurance holding companies (FRIs) to support their transition to IFRS 17 Insurance Contracts Standard (IFRS 17). The advisory is addresses the early adoption of IFRS 17 Insurance Contracts Standard (IFRS 17), accounting for financial guarantee contracts, and semi-annual progress reporting to OSFI.

    IASB released IFRS 17, which replaces IFRS 4, in May 2017. The Canadian Accounting Standards Board endorsed IFRS 17, which is now incorporated into Part I of the CPA Canada Handbook—Accounting. After reviewing several factors (such as consistency across insurers and operational capacity), OSFI determined that FRIs should not adopt IFRS 17 before its effective date of January 01, 2021. Disallowing adoption before January 01, 2021 implies that FRIs that are subsidiaries of deposit-taking institutions (DTIs) with an October 31 year-end will adopt IFRS 17 for annual periods beginning November 01, 2021. OSFI confirms this adoption date, having considered the complexity of implementing IFRS 17 and the size of these DTI subsidiaries relative to the regulated DTI. DTI subsidiaries with a December 31 year-end will adopt IFRS 17 on January 01, 2021.

    Additionally, OSFI determined that the existing FRIs should continue accounting for financial guarantee contracts using IFRS 17. OSFI will communicate any additional reporting requirements during the application process for new entrants after January 01, 2021. OSFI will require FRIs to submit semi-annual reports outlining the progress made in preparation for IFRS 17. This advisory also sets out the OSFI expectations with respect to the timelines and content of such reports, with the first progress report being due by September 30, 2018.


    Related Links

    Keywords: Americas, Canada, Accounting, Insurance, IFRS 17, Insurance Contracts, Transition Timeline, OSFI

    Featured Experts
    Related Articles
    News

    FSI Paper Examines Use of Suptech Initiatives by Financial Authorities

    The Financial Stability Institute (FSI) of BIS published a paper that examines the suptech developments by analyzing suptech initiatives of 39 financial authorities globally.

    October 17, 2019 WebPage Regulatory News
    News

    US Agencies Consult on Policy Statement on Allowance for Credit Losses

    US Agencies (FDIC, FED, NCUA, and OCC) are consulting on the policy statement on allowances for credit losses and on the guidance on credit risk review systems.

    October 17, 2019 WebPage Regulatory News
    News

    PRA Consults on Approach to Supervising Liquidity and Funding Risks

    In consultation paper (CP27/19), PRA published a proposal (CP27/19) to update the supervisory statement SS24/15 on the PRA approach to supervising liquidity and funding risk.

    October 17, 2019 WebPage Regulatory News
    News

    FSB Report Examines Implementation and Impact of G20 Financial Reforms

    FSB published fifth annual report on the implementation and effects of the G20 financial regulatory reforms.

    October 16, 2019 WebPage Regulatory News
    News

    EBA Launches Consultation on Comprehensive Pillar 3 Disclosures

    EBA proposed the new comprehensive implementing technical standard (ITS) for public disclosures by financial institutions.

    October 16, 2019 WebPage Regulatory News
    News

    EBA Consults on Revised Technical Standards on Supervisory Reporting

    EBA launched a consultation on the revised implementing technical standards, or ITS, on supervisory reporting.

    October 16, 2019 WebPage Regulatory News
    News

    BoE and FCA Examine Use of Machine Learning in Financial Sector in UK

    BoE and FCA published a report on the results of a joint survey by BoE and FCA in 2019 to better understand the use of machine learning in the financial services sector in UK.

    October 16, 2019 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel Framework

    BCBS published the seventeenth progress report on adoption of Basel regulatory framework.

    October 16, 2019 WebPage Regulatory News
    News

    APRA Proposes Measures to Strengthen Capital for Bank Depositors

    APRA proposed changes to APS 111, which is the prudential standard on measuring capital adequacy and establishes the criteria for regulatory capital requirements of authorized deposit-taking institutions.

    October 15, 2019 WebPage Regulatory News
    News

    EIOPA Consults on Technical Advice for the 2020 Review of Solvency II

    EIOPA is consulting on an opinion that sets out technical advice for the 2020 review of Solvency II.

    October 15, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3981