IASB to consider further potential amendments to IFRS 17
Jan 11, 2019
In January 2019, the International Accounting Standards Board (the Board) released the agenda papers for their upcoming meeting. The Board will discuss 5 of the 25 concerns regarding IFRS 17, "Insurance Contracts" that were identified in October 2018 as candidates for potential amendments. The staff recommends several amendments to the standard.
Applying the criteria for evaluating proposed amendments agreed on in October 2018, the Board is asked to consider the following aspects of IFRS 17:
Issue |
Agenda paper with detailed description (link to IASB website) |
Comment |
Acquisition cash flows for renewals outside the contract boundary |
The staff recommends five amendments to the standard |
|
Reinsurance contracts held: initial recognition when underlying insurance contracts are onerous |
The staff recommends two amendments to the standard |
|
Contractual service margin: limited applicability of risk mitigation exception (some aspects already discussed at the December 2018 meeting) |
Agenda paper 2D | The staff recommends one amendment to the standard |
Reinsurance contracts held: ineligibility for the variable fee approach |
||
Contractual service margin: coverage units in the general model |
Agenda paper 2E |
The staff recommends six amendments to the standard |
The staff notes that papers on the remaining topics from the list of issues presented at the October meeting will be presented to the Board in the first quarter of 2019.