The IASB’s Transitional Resources Group (TRG) met on September 26th and 27th for their third technical discussion on IFRS 17, where the group continued their discussion on implementation issues raised by practitioners.
The group discussed ten issues in detail, covering areas of uncertainty identified by preparers, for which the IASB had prepared staff papers. Those staff papers, along with the TRG discussion, provide helpful clarifications in a number of areas including:
The discussion also highlighted a number of operational challenges to be considered by preparers in the practical application of IFRS 17.
Other topics discussed in detail at the TRG meeting include:
A number of other questions submitted by practitioners were also discussed in brief, details of which are included in this Insurance Accounting Alert.
The IASB is expected to hold an educational session at their next board meeting, during the week of October 22nd, 2018, where items such as the EFRAG letter issued on September 3rd, 2018 will be discussed. EFRAG, the EU accounting standards advisory body, are in the process of preparing their draft endorsement advice on IFRS 17. The EFRAG letter identified a number of topics which the EFRAG board merit further consideration by the IASB. EFRAG note that they have not yet determined the impact of the concerns raised on their draft endorsement advice.
There is speculation in the industry on timelines for implementation of IFRS 17, with interested parties such as the Association of British Insurers, and Insurance Europe calling for delays to the effective date. This would allow time to address a number of underlying issues and for companies to be ready for implementation. Neither the IASB nor EFRAG have indicated that any changes to the timelines will be proposed, so insurers should not pause implementation projects at this point.
Please download the document below for more detailed insights, and if you have a question, please do get in touch.