UK Endorsement Board adopts IFRS 17

  • UK Endorsement Board (UKEB) Image

17 May 2022

The UK Endorsement Board (UKEB) has approved the adoption of International Financial Reporting Standard (IFRS 17) 'Insurance Contracts' for use by UK companies.

The adoption covers both IFRS 17 issued by the International Accounting Standards Board (IASB) in May 2017, and subsequent amendments in June 2020 and December 2021.

The UKEB secretariat's Endorsement Criteria Assessment concludes that:

  • IFRS 17 meets the criteria of understandability, relevance, reliability and comparability required of the financial information needed for making economic decisions and assessing the stewardship of management, as required by SI 2019/685 (see Regulation 7(1)(c)); and 
  • application of IFRS 17 is not contrary to the principle that an entity’s accounts/consolidated accounts must give a true and fair view as required by SI 2019/685 (see Regulation 7(1)(a)).

Additionally the UKEB concludes that IFRS 17 is likely to be conducive to the long-term public good in the UK.

The effective date of UK-adopted IFRS 17 is 1 January 2023 with early application permitted for entities that apply IFRS 9 Financial Instruments on or before the initial application of IFRS 17.

The UKEB will carry out a review of the impact of the adoption of the standard and a report setting out the conclusions of this review will be published by the UKEB by 1 January 2028.

For more information, including the Endorsement Criteria Assessment see the UKEB website here.  A link to an updated adoption status report is also available on the UKEB website.

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