Showing posts with label IFRS 17. Show all posts
Showing posts with label IFRS 17. Show all posts

Wednesday, 25 September 2019

IFRS 17: Global insurance associations call for delay so vital improvements can be made to standard

A wide group of international insurance associations - including Insurance Europe - has called on the International Accounting Standards Board (IASB) to make further improvements to International Financial Reporting Standard (IFRS) 17 – insurance contracts - and to change its effective date to 1 January 2023.
While recognising that the IASB has made improvements in a number of areas, the associations warned that a number of significant issues have not been addressed and added that additional changes are still required to obtain a high-quality standard that can be implemented at a reasonable cost.
The associations called on the IASB to take the time necessary to make the changes needed to ensure a strong global commitment to the new standard. In addition, the significant implementation concerns that have been raised by the industry remain and must be taken into account. Therefore, the associations called for a delay to the global effective date of IFRS 17 (and IFRS 9 - financial instruments - for insurers) until 1 January 2023, in order to ensure a successful implementation.
The other associations are:
  • Canadian Life & Health Insurance Association
  • Financial Service Council of New Zealand
  • Insurance Bureau of Canada
  • Insurance Council of New Zealand
  • Insurance Council of Australia
  • Korea Life Insurance Association
  • National Association of Mutual Insurance Companies

Wednesday, 11 September 2019

IFRS 17: EU insurers say some improvements welcome, but major issues still to be addressed

Insurance Europe and the CFO Forum have issued a joint call for further improvements to be made to International Financial Reporting Standard (IFRS) 17 — insurance contracts — and have raised concerns over its timing.
European insurers submitted a joint response to a draft comment letter written by the European Financial Reporting Advisory Group (EFRAG) in response to the International Accounting Standards Board's (IASB) proposed amendments to IFRS 17.
In their response, Insurance Europe and the CFO Forum argue that while the IASB has proposed several helpful improvements in its IFRS 17 exposure draft, unfortunately a number of issues remain unaddressed and further changes are needed.
Three issues — level of aggregation, transition and presentation — were given particular emphasis because they will have the largest overall impact on the operational complexity and costs of implementing IFRS 17.
European insurers also commented on other areas of concern that were identified by the industry during EFRAG’s field testing exercise and implementation process, but which have not been fully or only partially addressed by the IASB.
The joint response also included Insurance Europe’s view that a two-year delay is needed, which therefore leads to a global effective date of 1 January 2023 for IFRS 17 (and IFRS 9 — financial instruments, for insurers).

The full letter is available here and the appendices here