At its May 2020 Board meeting, the IASB discussed seven “sweep issues” identified during the balloting process for finalising the amendments to IFRS 17, and agreed to certain amendments to IFRS 17, as follows:
Whilst most of the sweep issues reflect relatively simple clarifications, a few of the issues represent more important changes, particularly the change regarding applying the OCI option and the risk mitigation option together under the VFA approach and the change regarding the identification of losses on underlying contracts for reinsurance held. The former change takes away an unintended barrier for using the OCI approach when the entity also plans to use the risk mitigation approach. The latter change deals with an important aspect of the recovery of losses through reinsurance held that is fairly common in practice.
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