IASB votes to reconfirm overlay and deferral approach

  • IASB (International Accounting Standards Board) (blue) Image

19 Apr, 2016

The IASB has just voted in favour of the staff recommendations in connection with the redeliberation of the proposals around the application of IFRS 4 together with IFRS 9.

There was a clear majority for supporting the staff's recommendations. 13 board members were present, and only one board member voted against all staff recommendations. Another board member voted for most of the staff recommendations but against the recommendations around disclosures. There were some smaller comments by board members that will lead to changes, however, these are mainly directed towards easier application. Thus, the approaches proposed in the Exposure Draft “Amendments to IFRS 4: Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts” (overlay approach and deferral approach) have been essentially reconfirmed.

A more detailed summary of the IASB's discussion can be found in our IAS Plus meeting notes from the meeting.

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