At its meeting on 17 March 2020, the International Accounting Standards Board (IASB) agreed the deferral of IFRS 17 Insurance Contracts (IFRS 17), including the amendments, to annual reporting periods beginning on or after 1 January 2023.
The IASB also agreed to extend the fixed expiry date of the temporary exemption from applying IFRS 9
Financial Instruments (IFRS 9) for qualifying insurers (as contained in IFRS 4), so that all entities must apply IFRS 9 for annual reporting periods beginning on or after 1 January 2023. Early adoption of IFRS 17 is permitted, provided an entity also applies IFRS 9.
The deferral of IFRS 17 and 9 leads to several options for insurers and reinsurers for their accounting change implementation roadmap. Download our most recent paper below to explore some of these options, along with the impact of Covid-19 on IFRS 17 and IFRS 9 implementation. In our view, the virus is likely to further impact the pace of the IFRS 17 implementation, and companies may need to revise their plans in light of this new uncertainty. The final IFRS 17 standard is expected to be issued by the IASB in June 2020.
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