IASB Adopts Changes to IFRS 17 Exposure Draft Amendments
The International Accounting Standards Board (IASB) in December 2019 adopted changes to the IFRS 17 exposure draft supported by the insurance industry, and has decided to delay discussions about extending the new standards’ effective date beyond the current 2022 deadline.
IFRS 17, issued in May 2017, is the first truly international accounting standard for insurance contracts. It addresses the many inadequacies of local rules in accounting for such contracts.
The aim of the amendments is to accelerate implementation of IFRS 17 by reducing deployment costs and making it easier for insurers to explain their results, while minimizing the risk of disruption to implementation already underway. They do not change the fundamental principles behind IFRS 17 or reduce the usefulness of information for investors. In the light of the proposed amendments, the Board had also proposed to defer the effective date of the Standard by one year to 2022 and will consider deferring implementation even further.