Annual Improvements to IFRSs 2018-2020 Cycle – International Accounting Standards Board

Date recorded:

At its meeting on June 20-21, 2018, the International Accounting Standards Board (the Board) tentatively decided to include the following minor amendments to IFRS 17 (and other Standards amended by IFRS 17) as part of the Annual Improvements to IFRSs 2018-2020 Cycle:

  1. to amend the terminology in paragraph 27 of IFRS 17 to include insurance acquisition cash flows relating to insurance contracts in the group yet to be issued;
  2. to amend the terminology in paragraph 28 of IFRS 17 to achieve the intended timing of recognition of contracts within a group;
  3. to remove requirements that could result in double-counting of the risk-adjustment for non-financial risk in the insurance contracts reconciliation disclosures and revenue analyses;
  4. to correct the terminology in the sensitivity analysis disclosures;
  5. to exclude business combinations under common control from the scope of the requirements for business combinations in IFRS 17;
  6. to amend IFRS 3 Business Combinations so that the amendment made by IFRS 17 on the classification of insurance contracts applies prospectively;
  7. to amend IFRS 7 Financial Instruments: Disclosures, IFRS 9 Financial Instruments and IAS 32 Financial Instruments: Presentation to achieve the intended scopes of these financial instruments Standards and the scope of IFRS 17, particularly with respect to insurance contracts held;
  8. to add an explanation that, in Example 9 of the Illustrative Examples on IFRS 17, the time value of the guarantee changes over time.

The Board also tentatively decided to propose to clarify the definition of the coverage period for insurance contracts with direct participation features. The proposed amendment would clarify that the coverage period for such contracts includes periods in which the entity provides investment-related services.

Review the IASB Update and podcast on the Board's Web site.

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