This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

ECON draft resolution on IFRS 17

  • European Union Image

04 Jun 2018

At its meeting on 18-19 June 2018, the members of the Committee on Economic and Monetary Affairs (ECON) of the European Parliament will vote on a draft motion for resolution on IFRS 17 'Insurance Contracts'. The draft has now become available.

The draft notes that IFRS 17 will bring "a harmonisation of the accounting rules for insurance contracts across different constituencies" and "is intended to provide a more realistic description and better comparability of financial statements within the insurance sector". However, the draft also notes that the benefits of more consistency and transparency comes at the price of a fundamental accounting change entailing significant efforts and costs as the standard is deemed to be complex.

It is in this context that the draft notes concerns of the ECON members. While the IASB implementation support is positively noted, the draft also calls on EFRAG (in developing its endorsement advice) and the European Commission (in deciding on the final endorsement):

  • to examine the potential effects on financial stability, on competitiveness, on the insurance markets and the cost-benefit analysis;
  • to consider broader tests, including field tests, to assess the effects and interactions;
  • to consider the concerns put forward by EBA and ESMA and the issues identified by EFRAG itself;
  • to assess in particular whether IFRS 17 meets the endorsement criteria of understandability and public good;
  • to consider the aspects of long-term investment and possible pro-cyclicality;
  • to assess the potential interaction and mismatches between IFRS 9 and IFRS 17;
  • to examine the achievability of the current implementation timeline of IFRS 17; and
  • to closely monitor its implementation in the EU if IFRS 17 is endorsed at the EU level.

The full draft resolution is available on the website of the European Parliament.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.