United States

Proposed amendments to IFRS 17

FINANCIAL REPORTING INSIGHTS

The International Accounting Standards Board recently released an Exposure Draft, Amendments to IFRS 17. The Exposure Draft addresses the following topics, among others, related to International Financial Reporting Standard (IFRS) 17, Insurance Contracts:

  • Deferring the effective date of IFRS 17 – by one year from annual reporting periods beginning on or after January 1, 2021 to annual reporting periods beginning on or after January 1, 2022
  • Scope exclusions – credit card contracts and loan contracts that meet the definition of an insurance contract
  • Expected recovery of insurance acquisition cash flows
  • Contractual service margin attributable to investment-return service and investment-related service
  • Reinsurance contracts held – recovery of losses on underlying insurance contracts
  • Presenting separately in the statement of financial position the carrying amount of portfolios of insurance contracts issued that are assets and those that are liabilities
  • Extending the risk mitigation option available when an entity uses derivatives to mitigate financial risk arising from insurance contracts with direct participation features

The Exposure Draft is available for comments until September 25, 2019.