IASB Decides on New Effective Date for IFRS 17

The IASB has completed its discussions on the amendments to IFRS 17 Insurance Contracts that were proposed for public consultation in June 2019 including its effective date.

It has decided that the effective date of IFRS 17 will be deferred to annual reporting periods beginning on or after January 1, 2023. The IASB 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.

The IASB has in previous meetings confirmed that it will proceed with the proposals outlined in the June 2019 consultation document albeit with some minor modifications in response to feedback received. The IASB also added some additional amendments, again in response to feedback on those proposals.

The IASB’s decision to defer the effective date by two years from the original date to 2023 will enable insurers around the world to implement IFRS 17 at the same time, which the IASB considers to be beneficial for investors, insurers and other stakeholders.

The IASB expects to issue the amendments to IFRS 17 in the second quarter of 2020.

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