Released 08 October 2021
The European Financial Reporting Advisory Group (EFRAG) has published its final comment letter in in response to the International Accounting Standards Board’s (IASB) Exposure Draft ED/2021/8 Initial Application of IFRS 17 and IFRS 9 – Comparative Information (Proposed amendment to IFRS 17).
In the comment letter, EFRAG expresses its appreciation for the IASB's swift response and delivery of the Exposure Draft because this is an urgent issue. EFRAG welcomes and supports the IASB proposal as it will allow insurance entities to provide more useful information about their activities during the comparative period and also reduce operational challenges.
The comment letter also expresses some remaining concerns that EFRAG would like the IASB to address when finalising the amendment. For example:
•EFRAG recommends that the IASB aligns the scope of the classification overlay and the temporary exemption from applying IFRS 9; and
•EFRAG suggests that the IASB states explicitly that the classification overlay may be applied from a date pre-dating the publication of the exposure draft or the final amendment.
More information can be found at: https://www.efrag.org/News/Project-535/EFRAGs-final-comment-letter-on-the-IASBs-Exposure-Draft-ED20218-Initial-Application-of-IFRS-17-and-IFRS-9---Comparative-Information-Proposed-amendment-to-IFRS-17.