Amendments respond to industry concerns about the impact of differing effective dates.
Differing effective dates of IFRS 9 Financial Instruments and the new insurance contracts standard could have had a significant impact on insurers.
In response to concerns regarding temporary accounting mismatches and volatility, and increased costs and complexity, the International Accounting Standards Board (the Board) issued amendments to IFRS 4 Insurance Contracts in 2017.
The two optional solutions raised some considerations which required detailed analysis and management judgement.
On the issue of IFRS 17 (Revised) Insurance Contracts in June 2020, the end date for applying the two options under the IFRS 4 amendments was extended to 1 January 2023, aligned with the effective date of IFRS 17.
Temporary exemption from IFRS 9
When deciding if and how to use the amendments, companies considered:
The impact of these amendments included the following:
If you would like to discuss the IFRS 9 impacts on your business, please speak to your usual KPMG contact.
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