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IASB decides on first potential amendments to IFRS 17

  • IASB meeting (blue) Image

13 Dec 2018

At its meeting currently held in London, the IASB discussed IFRS 17 'Insurance Contracts' and 13 of the 25 concerns regarding the standard that were identified in October 2018 as candidates for potential amendments.

Applying the criteria for evaluating proposed amendments agreed on in October, the Board came to the following conclusions (all votes with at least 13 Board members in favour):

Topic

Issue

Agenda paper with detailed description (link to IASB website)

Board decision - consider amendment yes or no?

Presentation

Separate presentation in the statement of financial position of groups that are assets and groups that are liabilities

Agenda paper 2A

yes

Presentation and measurement

Separate presentation and measurement of premiums receivable and claims payable

no

Measurement

Use of locked in discount rate to adjust the contractual service margin (CSM)

Agenda paper 2B

no

Measurement

Subjectivity in determining discount rates and risk adjustment

no

Measurement

Risk adjustment in a group of entities

no

Presentation

Other comprehensive income (OCI) option for insurance finance income and expense

no

Defined terms

Definition of insurance contract with direct participation features

Agenda paper 2C

no

Measurement

Limited applicability of risk mitigation exception

non-transitional requirements: no

transitional requirements: no vote — deferred to the more general discussion of transition requirements, especially related to OCI

Measurement

Business combinations: classification of contracts

Agenda paper 2D

no

Measurement

Business combinations: contracts acquired in their settlement period

no

Measurement

Reinsurance contracts held: expected cash flows arising from underlying insurance contracts not yet issued

Agenda paper 2E

no

Measurement

Interim financial statements: Treatment of accounting estimates

Agenda paper 2F

no

The IASB has released a podcast on the IFRS 17 session of its December meeting, featuring IASB Board member Darrel Scott and IASB technical manager Roberta Ravelli. The podcast can be accessed through the press release on the IASB website. Please see also our Deloitte observer notes for a comprehensive summary of the IASB's discussions on the individual points.

The remaining nine topics from the list of issues presented at the October meeting will be considered at a future meeting.

The IASB has published a press release announcing that it will propose to amend IFRS 17 in the one respect noted above.

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.