IASB to complete its planned redeliberations of the proposed IFRS 17 amendments
06 Mar, 2020
At its upcoming March meeting, the IASB will discuss the remaining issues resulting from the feedback received on the exposure draft ED/2019/4 'Amendments to IFRS 17' which are the effective date of IFRS 17 and the expiry date of the IFRS 9 temporary exemption in IFRS 4.
On the effective date, which originally was set at 1 January 2021 and which ED/2019/4 proposed to move to 1 January 2022, the staff now recommend that the Board:
- a) defer the effective date of IFRS 17 (incorporating the amendments) to annual reporting periods beginning on or after 1 January 2023; and
- b) extend the fixed expiry date of the temporary exemption from applying IFRS 9 in IFRS 4 to annual reporting periods beginning on or after 1 January 2023.
The staff recommend that the amendment to IFRS 4 — reflecting the extension of the fixed expiry date for the temporary exemption from applying IFRS 9 — is balloted separately from the amendments to IFRS 17 (including consequential amendments to other IFRSs). This will give jurisdictions with an endorsement process the possibility to endorse the temporary exemption independently (and possibly more quickly) and so avoid endorsement after the current temporary exemption has run out (January 2021).
The papers for the meeting also offer an overview of all topics discussed and the Board's tentative decisions (links are to our Deloitte meeting notes taken at the meeting the decision was made).
| Topic | Confirm amendment as proposed in the ED | Confirm proposed amendment with some changes | Amendment not proposed in the ED |
|---|---|---|---|
| 1A — Scope exclusion for credit cards | January 2020 | ||
| 1B — Scope exclusion for loans | December 2019 | ||
| 2 — Expected recovery of insurance acquisition cash flows | December 2019, January 2020 | ||
| 3 — Contractual service margin attributable to investment services | December 2019, February 2020 | ||
| 4 — Reinsurance contracts held — recovery of losses | December 2019 | ||
| 5 — Presentation in the statement of financial position | December 2019 | ||
| 6A — Applicability of the risk mitigation option — reinsurance contracts held | December 2019 | ||
| 6B — Applicability of the risk mitigation option — non-derivative financial instruments at fair value through profit or loss | February 2020 | ||
| 7 — Accounting policy choice relating to interim financial statements | January 2020 | ||
| 8A — Effective date of IFRS 17 | To be decided at March 2020 meeting | ||
| 8B — Expiry date of IFRS 9 temporary exemption in IFRS 4 | To be decided at March 2020 meeting | ||
| 9A — Transition relief for contracts acquired | December 2019 | ||
| 9B — Transition reliefs for the risk mitigation option — the application from the transition date | December 2019 | ||
| 9C — Transition relief for risk mitigation option — the option to apply the fair value approach | December 2019 | ||
| 9D — Transition relief for investment contracts with discretionary participation features | February 2020 | ||
| 9E — Transition relief for identifying the date a reinsurance contract held was acquired | February 2020 | ||
| 9F — Transition relief relating to interim financial statements | February 2020 | ||
| 10 — Minor amendments | February 2020 | ||
After its March 2020 meeting, the Board will have completed its planned redeliberations of the feedback on the exposure draft. If the Board gives permission to start the balloting process at this meeting, the staff plan to draft the amendments to IFRS 17 and bring any sweep issues identified during the balloting of the amendments for discussion at a future meeting. The staff expect that the amendments will be issued in the second quarter of 2020, in line with the Board’s plan as stated in the exposure draft.
Please click to access all papers for the meeting on the IASB website. The discussion of the IFRS 17 amendments is currently scheduled for Tuesday 17 March 14.30-15.30 London time.
