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Insurance – Transition to IFRS 17

Insurance – Transition to IFRS 17

How are insurers’ implementation challenges regarding the new standard being addressed?

How are insurers’ implementation challenges regarding the new standard being addressed?

Making sense of the requirements

The new insurance contracts standard, IFRS 17, promises a new era of increased transparency and reduced diversity in the accounting for insurance contracts. 

The International Accounting Standards Board has been monitoring and supporting its implementation and has learned much about stakeholders’ concerns and implementation challenges. 


What is being done to support IFRS 17 implementation?

The Board has set up a Transition Resource Group for Insurance Contracts (TRG), which held three substantive meetings in 2018 to discuss several of the issues raised by stakeholders. 

 

Read our summaries of the topics discussed by TRG members at each meeting.

September 2018  |  May 2018  |  February 2018

 

Although the TRG does not have standard-setting authority, it provides a public forum for stakeholders to follow the discussion of questions raised on implementation.

The Board has also taken some tentative decisions in recent months aimed at addressing insurers’ concerns and implementation challenges. 

 

What has the Board decided?

  • October 2018: The Board identified 25 concerns and implementation challenges warranting further exploration and set high-hurdle criteria for proposing amendments to IFRS 17. Find out more ►
  • November 2018: The Board voted to propose a one-year deferral of IFRS 17’s effective date to January 2022. Find out more ►
  • December 2018: The Board voted to propose an amendment to IFRS 17’s presentation requirements.  
    Find out more ►
  • January 2019: The Board voted to propose amendments to IFRS 17’s requirements covering four further topics. Find out more ►
  • February 2019: The Board voted to propose two amendments to IFRS 17 targeting loan contracts and transition requirements. Find out more ►

 

Next steps

The Board has so far addressed the majority of the 25 concerns and implementation challenges identified in October 2018. It is expected to discuss the remaining topics in the coming months, while an exposure draft of the amendments to IFRS 17 is expected in mid-2019.  

Bookmark this web page, where you will find our observations of all future Board and TRG discussions on IFRS 17. We encourage you to speak to your local KPMG contact about recent developments in insurance accounting and how they may impact you.

 

Find out more

For KPMG's insights on transitioning to the new standard, visit home.kpmg/ifrs17. Follow 'KPMG IFRS' on LinkedIn for the latest on IFRS.

 

 
 

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