Financial Services Ireland

IFRS 17

IASB concludes planned deliberations on IFRS 17

At its meeting on 15 May 2019, the International Accounting Standards Board, or IASB:

Agreed a comment period of 90 days for the Exposure Draft (ED) of proposed amendments to IFRS 17.
Revised a previous decision that an investment-return service exists only when an insurance contract accounted for under the General Model includes an investment component. The Board decided that an investment-return service exists in specified circumstances, sometimes without an investment component.
Agreed that refunds of premiums do not need to be disclosed separately from investment components in the reconciliation from opening to closing balances of the insurance contract liability.
Clarified that payment or receipt of amounts lent to policyholders should not give rise to insurance revenue. The Board also clarified that the waiver of such a loan should be treated as a claim.
Asked the IASB staff to add a footnote to the Basis for Conclusions on IFRS 17 with respect to mutual entities that issue insurance contracts.

With the discussion at this meeting, the IASB staff concluded its planned deliberations on amendments to IFRS 17. They confirmed their intention to publish the ED at the end of June 2019 with a target to issue the amendments to IFRS 17 in Q2 2020.

Click below to read our May 2019 Insurance Accounting Alert for further details. If you have any questions, don’t hesitate to get in touch.

Thought Leaders

James Maher

Insurance, Sector Leader

Ciara McKenna

FS Partner, Assurance, Insurance

Growth

Insurance Accounting Alert May 2019

IASB agrees further amendments to IFRS 17 and a 90-day ED comment period.

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IASB concludes planned deliberations on IFRS 17

Thought Leaders

James Maher

Ciara McKenna

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