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IASB updates IFASS on IFRS 17, IASB meeting papers available

  • IFRS - IASB Image
  • IFRS - IFASS (International Forum of Accounting Standard Setters) Image

Mar 29, 2019

On March 29, 2019, at the meeting of the International Forum of Accounting Standard Setters (IFASS) in Buenos Aires, IASB Board member Darrel Scott updated the IFASS members on the status of the project regarding potential amendments to IFRS 17 "Insurance Contracts". In addition, the International Accounting Standards Board (IASB) made available the papers for discussing the project at the upcoming IASB meeting.

In his presentation, Mr. Scott first discussed where the project on possible amendments currently is, the envisioned timeline for the project and next steps:

  • The IASB expects to issue an exposure draft of proposed amendments to IFRS 17 by the end of June 2019.
  • A shortened comment period is likely in order to speed up the process.
  • The IASB expects the finalization of the amendments in early to mid 2020.
  • The comparative period would begin in 2021.
  • The amended standard would become effective in 2022 (Mr. Scott reminded IFASS members that the postponed effective date is still only an amendment to the standard the IASB intends to propose).

Mr. Scott then went on to explain the amendments the IASB intends to propose. These comprise 12 amendments that fall into 7 broad areas:

  • Effective date;
  • Acquisition cash flows for renewals;
  • Profit allocation for some contracts;
  • Reinsurance contracts held;
  • Balance sheet presentation;
  • Transition; and
  • Loans that transfer insurance risks.

There will also be minor amendments to IFRS 17 that will be proposed as part of the annual improvements.

At its April 2019 meeting, the Board plans to consider the package of amendments tentatively decided by the Board as a whole. The following agenda papers were made available on the IASB website:

  • AP2: Cover note
  • AP2A: Overview of the amendments to IFRS 17
    • considering the proposed amendments as a whole;
    • evaluating each of the proposed amendments against the criteria the Board set in October 2018; and
    • considering the likely effects of the proposed amendments to IFRS 17
  • AP2B: Due process steps and permission for balloting
    • asking the Board to confirm its tentative decisions from the November 2018 meeting relating to the mandatory effective date of IFRS 17;
    • considering the due process steps undertaken by the Board in completing the narrow-scope project on the amendments to IFRS 17 and asking the Board to confirm that it wishes to proceed with an exposure draft; and
    • asking if there are any planned dissents at this stage
  • AP2C: Sweep issues
    • discussing additional stakeholder concerns relating to IFRS 17 that have arisen in the project on the amendments to IFRS 17; and
    • recommending that the effective date of proposed amendments should be aligned with the effective date of IFRS 17
  • AP2D: Annual improvements
    • including recommendations for other minor changes that would fall within the scope of the annual improvements process but could also be addressed in the exposure draft of proposed amendments to IFRS 17

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