At an educational meeting on Wednesday 24 October, the IASB discussed how they might evaluate at future meetings whether to make limited changes to IFRS 17 for 25 areas of concern and implementation challenges raised by stakeholders. Read on for a high level summary of proceedings, or download our more detailed analysis below.
While no decisions were made at the October IASB meeting, the group appears to be open to considering limited changes in the coming months including considering a delay to the current implementation date of 1 January 2021.
The IASB was not asked whether the standard should be amended; the IASB staff will bring papers to future meetings, with further analysis of the 25 topics, to consider whether any amendments to IFRS 17 are justified. Any amendment to IFRS 17 would be subject to due process, including development of an Exposure Draft.
Possibility for amendments
The Board members emphasised that even if individual changes met the criteria above, they would still want to consider the package of changes as a whole before concluding whether the benefits of making the changes outweighed the costs. Board members emphasised that they would not want to make any changes that violated the principles or decisions that they had made in developing the standard. Only when new information had come to the attention of the Board or staff, should changes be considered.
The 25 topics included in the staff papers for the meeting cover many areas of IFRS 17 – scope, measurement, presentation, the effective date and transition – and include potential changes to fundamental aspects of the standard.
In seven of the 25 areas, the IASB staff appears to see potential for considering changes to the standard. The IASB discussion was not limited to these seven issues only, but broadly considered all topics. Read our Insurance Accounting Alert publication for more detail on these discussions and the seven areas that staff preliminarily assessed as possibly meeting the criteria for revision.
How we see it