The Insurance Companies Act stipulates in the case of federally regulated insurers (FRIs) that “financial statements shall, except as otherwise specified by the Superintendent, be prepared in accordance with generally accepted accounting principles, the primary source of which is the Handbook of the Canadian Institute of Chartered Accountants.”

Generally Accepted Accounting Principles for FRIs is effectively International Financial Reporting Standards as issued by the IASB. OSFI may specify additional accounting guidance or disclosure requirements, or require FRIs to use a specific option within an applicable accounting standard. OSFI makes these specifications in situations where there is a prudential need for additional accounting guidance.

To support FRIs in their transition to IFRS 17, OSFI issued an advisory regarding:

• the option to early adopt IFRS 17;
• accounting for financial guarantee contracts; and
• semi-annual progress reporting to OSFI.

Review the press release and the advisory on the OSFI's website.