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Amendments to IFRS 17 – International Accounting Standards Board

Date recorded:

At its meeting on November 20, 2019, the IASB met to discuss the feedback on its Exposure Draft and to decide on its plan for redeliberating some of the matters raised by respondents The Board received a summary of comment letters on the Exposure Draft, but was not asked to make any decisions. The Board tentatively decided that it will confirm at a future meeting the proposed amendments on the following topics without substantive redeliberation:

  1. the scope exclusion for loans;
  2. the contractual service margin attributable to investment services—coverage units for insurance contracts with direct participation features;
  3. presentation in the statement of financial position—portfolio instead of group level; (iv) the applicability of the risk mitigation option—reinsurance contracts held; (v) transition relief for business combinations; and
  4. transition reliefs for the risk mitigation option—application from the transition date and the option to apply the fair value approach.

The Board also tentatively decided that it will consider further the feedback on the following topics:

  1. the proposed scope exclusion for credit cards;
  2. the proposed amendment for expected recovery of insurance acquisition cash flows;
  3. the proposed amendment for contractual service margin attributable to investment services—coverage units for insurance contracts without direct participation features, disclosures and terminology;
  4. the proposed amendment for reinsurance contracts held—recovery of losses;
  5. the applicability of the risk mitigation option—non-derivative financial instruments at fair value through profit or loss;
  6. the proposed effective date of IFRS 17;
  7. the proposed extension of the IFRS 9 temporary exemption in IFRS 4;
  8. transition—the prohibition from applying the risk mitigation option retrospectively;
  9. proposed minor amendments;
  10. the level of aggregation—annual cohorts for some specific insurance contracts; (xi) business combinations—contracts acquired in their settlement period; (xii) interim financial statements; and
  11. additional specific transition modifications and reliefs.

The Board also tentatively decided that it will not consider further the feedback on the following topics:

  1. presentation in the statement of financial position—premiums receivable and claims payable;
  2. the risk mitigation option for insurance contracts without direct participation features;
  3. the effective date—comparative information on initial application of IFRS 17;
  4. the level of aggregation—annual cohorts for all insurance contracts other than some specific contracts;
  5. cash flows in the boundary of a reinsurance contract held;
  6. subjectivity in determining discount rates and the risk adjustment for non-financial risk;
  7. the risk adjustment for non-financial risk in a consolidated group of entities;
  8. the discount rate used to determine adjustments to the contractual service margin;
  9. the other comprehensive income option for insurance finance income or expenses;
  10. business combinations—classification of contracts acquired;
  11. the scope of the variable fee approach—reinsurance contracts held and reinsurance contracts issued;
  12. mutual entities issuing insurance contracts;
  13. transition—general optionality and flexibility in the modified retrospective approach; and
  14. transition—reliefs in the full retrospective approach. At its future meetings, the Board will redeliberate some of the matters raised by respondents on the Exposure Draft.

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

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