IFRS Foundation board member Nick Anderson provides insight into proposed amendments to IFRS 17

Released 04 September 2019

In June 2019 the International Accounting Standards Board (IASB) issued ED/2019/4 Amendments to IFRS 17, which aims to support the implementation of IFRS 17 Insurance Contracts by reducing the costs of implementing the standard, and making it easier for applicable companies to explain their results on application. It also plans to defer the implementation of the standard to periods commencing on or after 1 January 2022. The comment deadline for the exposure draft is open until 25 September 2019.

The article focuses on two proposed amendments that the IASB believe will make ‘explaining financial results easier for some insurers.’ These are scenarios where:

commissions are paid on short-term insurance contracts with expected renewals; and

profit recognition on long-term contracts with investment returns.

The IASB has also released a webinar on the proposed amendments.

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