IFRS17 Implementation Delayed to 2022
Accounting standard setting body IASB (International Accounting Standards Board) in November 2018 decided to defer the effective date for International Financial Reporting Standard (IFRS) 17 – Insurance Contracts – to January 1, 2022. IFRS 17 deals with the recognition of income arising from insurance contracts and its presentation in annual accounts.
At the same time, the temporary exemption to IFRS 9 that was included in IFRS 4 also was extended by a year. IFRS 9 is a standard that pertains to the recognition of income from financial instruments, i.e. assets. It will be applicable as of January 1, 2022.
Insurers, especially smaller ones, had been pressing for a delay and requesting clarifications to the current wording of the standard, which IASB has been unable to provide in due time.
Investor groups and regulators expect IFRS 17 to result in greater detail and transparency in yearly accounts; inevitably, any additional costs resulting from the implementation of the new standard will be passed on to clients.