Insurance – Revised criteria for deferring IFRS 9

Insurance – Revised criteria for deferring IFRS 9

This IFRS newsletter brings you the latest on the IASB's insurance project.

KPMG IFRS Insurance topic image: crowd crossing a street carrying open umbrellas

We examine the latest developments and what the discussions could mean for you.

The IASB is to broaden the qualifying criteria for deferring IFRS 9 and introduce additional relevant disclosures.

The Board made these decisions at its April meeting, in response to feedback received on its exposure draft Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (the ED). 


“Many entities will welcome the broader criteria for insurers to defer application of IFRS 9.”


For a detailed discussion of these developments, read Issue 53 of our IFRS Newsletter: Insurance. Previous issues can be found on our Newsletters page.

Temporary exemption – Qualifying criteria

The IASB agreed to revise the qualifying criteria to include activity predominantly ‘related to insurance’. This wider definition will enable more companies to benefit from the exemption.

Temporary exemption – Disclosures

The IASB confirmed some of the disclosures proposed in the ED and amended others to help users of financial statements compare entities without creating excessive costs for preparers.

Overlay approach

The IASB clarified that qualifying financial assets could include financial assets related to surplus that an entity holds for regulatory or capital requirements.

It also amended the proposals for presentation of the overlay adjustment in the statement of comprehensive income.

Next steps

The IASB will discuss the remaining technical issues in May. The final amendments to IFRS 4 are currently expected to be published in September.

Visit our IFRS – Insurance hot topics page for the latest developments in the insurance contracts project

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