IASB publishes proposed amendments to IFRS 17

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IASB issues amendments to IFRS 17 Insurance Contracts

IFRS in Focus

This IFRS in Focus addresses the recent amendments to IFRS 17 Insurance Contracts that have been published by the International Accounting Standards Board (Board) in June 2020.

The Board has issued Amendments to IFRS 17, which makes targeted amendments to the following aspects of IFRS 17:

  • Deferral to 1 January 2023 of the effective date of IFRS 17 and the fixed expiry date for the temporary exception in IFRS 4 from applying IFRS 9
  • Scope exclusion for credit card contracts and similar contracts and optional scope exclusion for loan contracts with insurance coverage limited to the loan amount
  • Recognition of insurance acquisition cash flows relating to expected contract renewals, including guidance for insurance acquisition cash flows recognised in a business combination
  •  Application of IFRS 17 in interim financial statements
  •  Allocation of CSM attributable to investment-return service and investmentrelated service
  •  Risk mitigation option using instruments other than derivatives
  •  Recovery of losses from underlying insurance contracts through reinsurance contracts held
  •  Presentation in the statement of financial position
  •  Transition issues: classification of contracts acquired in their settlement period and guidance on the restatement of the risk mitigation option applied in prior periods
  •  Minor application issues
IASB issues amendments to IFRS 17 Insurance Contracts

Transitional provisions and effective date

An entity applies the amendments retrospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. They are effective for annual periods beginning on or after 1 January 2023. Earlier application is permitted.

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