IASB decides on first potential amendments to IFRS 17
Dec 13, 2018
At its meeting on December 11-13, 2018, the International Accounting Standards Board (the Board) discussed IFRS 17, "Insurance Contracts" and 13 of the 25 concerns regarding the standard that were identified in October 2018 as candidates for potential amendments.
Applying the criteria for evaluating proposed amendments agreed on in October, the Board came to the following conclusions (all votes with at least 13 Board members in favour):
|
Topic |
Issue |
Agenda paper with detailed description (link to IASB website) |
Board decision - consider amendment yes or no? |
|
Presentation |
Separate presentation in the statement of financial position of groups that are assets and groups that are liabilities |
yes |
|
|
Presentation and measurement |
Separate presentation and measurement of premiums receivable and claims payable |
no |
|
|
Measurement |
Use of locked in discount rate to adjust the contractual service margin (CSM) |
no |
|
|
Measurement |
Subjectivity in determining discount rates and risk adjustment |
no |
|
|
Measurement |
Risk adjustment in a group of entities |
no |
|
|
Presentation |
Other comprehensive income (OCI) option for insurance finance income and expense |
no |
|
|
Defined terms |
Definition of insurance contract with direct participation features |
Agenda paper 2C |
no |
|
Measurement |
Limited applicability of risk mitigation exception |
non-transitional requirements: no |
|
|
transitional requirements: no vote — deferred to the more general discussion of transition requirements, especially related to OCI |
|||
|
Measurement |
Business combinations: classification of contracts |
Agenda paper 2D |
no |
|
Measurement |
Business combinations: contracts acquired in their settlement period |
no |
|
|
Measurement |
Reinsurance contracts held: expected cash flows arising from underlying insurance contracts not yet issued |
Agenda paper 2E |
no |
|
Measurement |
Interim financial statements: Treatment of accounting estimates |
Agenda paper 2F |
no |
The remaining nine topics from the list of issues presented at the October meeting will be considered at a future meeting.
The Board announced that it will propose to amend IFRS 17 with respect to the one topic noted above.
Review the press release the Board's website.
