IASB publishes proposed amendments to IFRS 17
Released 27 June 2019
The Exposure Draft ED/2019/4 Amendments to IFRS 17 (June 2019) was raised as a result of concerns and challenges that have been raised by stakeholders over the implementation of the standard.
The exposure draft proposes targeted amendments to the following:
aexclude credit card contracts and loan contracts which meet the definition of an insurance contract;
bexpected recovery of insurance acquisition cash flows;
ccontractual service margin attributable to investment-return service and investment-related service;
drecovery of losses on underlying insurance contracts;
epresentation in the statement of financial position;
fapplicability of the risk mitigation option;
geffective date of IFRS 17;
htransition modifications and reliefs; and
iand some other minor amendments.
IFRS 17 is due for mandatory adoption for periods commencing on or after 1 January 2021, although the exposure draft proposes to defer this by a further year. Earlier adoption is permitted if both IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers are also applied.
The period of comment for the exposure draft is open to 25th September 2019.