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EFRAG issues final endorsement advice on IFRS 17 including June 2020 amendments

  • EFRAG (European Financial Reporting Advisory Group) (dk green) Image

31 Mar 2021

The European Financial Reporting Advisory Group (EFRAG) has submitted final endorsement advice on IFRS 17 ‘Insurance Contracts’ including the June 2020 amendments to the European Commission.

EFRAG assesses that “on a consensus basis that, apart from the requirement to apply annual cohorts to intergenerationally-mutualised and cash-flow matched contracts, all the other requirements of IFRS 17, on balance (i) meet the qualitative characteristics of relevance, reliability, comparability and understandability required to support economic decisions and the assessment of stewardship, raise no issues regarding prudent accounting, and that they are not contrary to the true and fair view principle; and (ii) are conducive to the European public good.” EFRAG did not reach a consensus related to the requirement to apply annual cohorts to intergenerationally-mutualised and cash-flow matched contracts. Seven EFRAG Board members believe that the annual cohorts requirement meets the endorsement criteria, whereas seven EFRAG Board members believe it does not and two EFRAG Board members abstained.

For more information, see the press release which includes links to the final endorsement advice package on the EFRAG website. In addition, the EFRAG endorsement status report has been updated.

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