Additional postponement for IFRS 17 insurance contracts
19 Mar 2020
The International Accounting Standards Board (IASB) has announced a further one-year deferment of the implementation date for IFRS 17 Insurance Contracts, so the effective date for the standard will now be 2023
19 Mar 2020
The board has also decided to extend the exemption currently in place for some insurers regarding the application of IFRS 9 Financial Instruments to enable them to implement both IFRS 9 and IFRS 17 at the same time.
IASB said timely implementation of IFRS 17 is vital to improve the quality and comparability of accounting for insurance contracts.
However, the decision to defer the effective date by two years from the original date to 2023 will enable insurers around the world to implement the new standard at the same time, which it considers to be beneficial for investors, insurers and other stakeholders.
The board expects to issue the amendments to IFRS 17 in the second quarter of 2020.
Alex Bertolotti, global IFRS 17 leader at PwC, said: ‘The IASB’s decision to further defer the effective date to 1 January 2023 is a welcome one.
‘It recognises the practical difficulties for many insurers in implementing the significant changes brought about by IFRS 17. The extra year gives some insurers a chance to consider how to derive more business value from their extensive IFRS17 projects.
‘For others, it will de-risk the delivery timetable. The additional time will also be welcome as insurers consider how they can use IFRS 17 to tell a clearer and more understandable story about their company.’