Financial Services Ireland

IASB issues proposed amendments to IFRS 17

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The International Accounting Standards Board (IASB or the Board) issued its Exposure Draft (ED) on proposed amendments to IFRS 17 Insurance Contracts (IFRS 17 or the standard) on 26 June 2019. Over the past months, the IASB considered 25 concerns and implementation challenges raised by stakeholders and assessed whether to propose changes to IFRS 17. The IASB selected only changes that, in its estimation, would not lead to a significant loss of useful information for investors, nor unduly disrupt implementation processes under way, nor risk undue delays in the effective date of IFRS 17.

As a result of these deliberations, the IASB proposes in the ED 12 targeted amendments to IFRS 17 in eight areas that meet these criteria, and asks stakeholders whether they agree with the proposed amendments. The eight areas of IFRS 17 subject to proposed changes are:

  1. Deferral of the effective date of IFRS 17 and IFRS 9 for insurers by one year
  2. Additional scope exclusions
  3. Expected recovery of insurance acquisition cash flows from insurance contract renewals
  4. Contractual service margin (CSM) relating to investment activities
  5. Applicability of the risk mitigation option for contracts with direct participation features
  6. Reinsurance contracts held — expected recovery of losses on underlying contracts
  7. Simplified presentation of insurance contracts in the statement of financial position
  8. Transition modifications and reliefs

In addition to the 12 proposed amendments, the ED also includes several minor amendments to IFRS 17.

Click below to read our June 2019 Insurance Accounting Alert for further details. If you have any questions, please reach out!

Thought Leaders

James Maher

Insurance, Sector Leader

Ciara McKenna

FS Partner, Assurance, Insurance

June Insurance Accounting Alert: IASB issues proposed amendments to IFRS 17

The IASB issued its Exposure Draft (ED) on proposed amendments to IFRS 17 Insurance Contracts on 26 June 2019.

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