Transition to IFRS 17 Transition to IFRS 17 Transition to IFRS 17

The International Accounting Standards Board (the Board) has made considerable progress on which aspects of IFRS 17 will be amended. To help you navigate the confirmed amendments to IFRS 17, we invite you to join our upcoming webcast explaining their practical implications. The Board received varied feedback on its Exposure Draft: IFRS 17 Amendments, including feedback on issues it had not consulted. It has now re-deliberated on its proposed amendments based on the feedback and outreach. This webcast will summarize the confirmed amendments to IFRS 17 and discuss what impacts these will have for insurers. It will also discuss next steps and suggested activities that insurers should do to accelerate their progress towards the effective date. This webcast will last approximately 90 minutes. It will be recorded and a link circulated for those unable to attend.

Click here to register for the webcast

We have two options for the webcast. When registering, please select the best option for you based on your time zone.

Option 1: EMA/Americas
Date: Wednesday 11 March 2020
Time: 8:00am (EDT)/12:00pm (GMT)/1:00pm (CET)

Option 2: ASPAC**
Date: Thursday 12 March 2020
Time: 9:00am (HKT/SGT)/10:00am (JST)/12:00pm (AEDT)
 
**CPE credits cannot be offered for the ASPAC webcast.

IFRS 17 Insurance Contracts is currently expected to have a mandatory effective date of 1 January 2022. Audit committees need to be active now if they are to provide the strong governance needed to help ensure a robust implementation.

The Global Public Policy Committee (GPPC) – which comprises representatives from the six largest global accounting networks KPMG, BDO, Deloitte, EY, Grant Thornton and PwC – has published two papers which seek to help insurers' audit committees fulfil this responsibility. 

KPMG has published a quick guide to the GPPC papers to give audit committees and preparers an overview of the key contents. 

At its first meeting of 2020, the International Accounting Standards Board (the Board) further considered feedback from respondents on IFRS 17 Insurance Contracts and confirmed proposed amendments in the following three areas.

• Interim reporting: Entities will now be required to make an accounting policy choice whether to change the treatment of accounting estimates made in previous interim financial statements. 
• Insurance acquisition cash flows: Following the Board’s confirmation last month of the treatment of assets for insurance acquisition cash flows, the Board has considered how such assets should be determined on transition. 
• Scope exclusion for credit cards and similar arrangements: This clarifies the scope exclusion from IFRS 17 in respect of certain credit card arrangements and has been expanded to address similar credit or payment arrangements which transfer significant insurance risk. 

The last discussions in the redeliberation process for amendments to IFRS 17 Insurance Contracts have brought further clarity on how the new standard will be applied. 

The Board has confirmed amendments in areas including the contractual service margin attributable to investment services, the risk mitigation option, transition modifications and reliefs, plus a number of minor amendments, while leaving some other areas unchanged.

At its March meeting, the Board will discuss the proposed effective date of IFRS 17. Meanwhile, the drafting of the final amendments will continue in line with its objective to issue them in mid-2020.

For further details on IFRS 17, contact Brian Morrissey, Head of Insurance, via this form.

• January 2020
• November 2019
• October 2019