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IASB Meeting Summary 

2018 - 2019

Since IFRS 17 (“the Standard”) was issued, the International Accounting Standards Board (“IASB” or “The Board”) has been engaging with insurers and other stakeholders to support in the transition to the Standard. As part of this process and alongside the establishment of the Transition Resource Group, the IASB has sought to understand the concerns and challenges presented by all stakeholders by gathering and discussing feedback on the Standard. As a result of this process, the Board is proposing targeted amendments to IFRS 17 which have been widely discussed in its meetings during 2018 and 2019, as chronicled below.

November 2019 Meeting

The IASB has completed their first round on the IFRS 17 amendments. Notable outcome of the meeting on 20 November 2019 is the commitment to give space to new topics beyond the amendments in the ED which were recommended by the stakeholders who sent 122 comment letters on the Exposure Draft. The new topics include the role of annual cohorts when accounting for CSM in "mutualised" portfolios, the accounting for claims liabilities acquired in a business combination and the IFRS 17 requirements for interim reporting. All discussions and deliberations are targeted to be completed by February 2020 starting with the next IASB meeting on 9-12 December 2019.

Full details of the latest IASB meeting can be found directly on the IASB website.

Deloitte IASB meeting summary

June 2019 Meeting:

The Board met on 15 May 2019 to conclude its deliberations before issuing the exposure draft of proposed amendments to IFRS 17 Insurance Contracts. At this meeting the Board received an update on the Transition Resource Group (TRG) for IFRS 17 Insurance Contracts, discussed technical issues for the Board to consider before finalising the exposure draft; and considered the comment period for the exposure draft.

Effective date
The proposed effective date for the amendments would be the same as the proposed new effective date for IFRS 17 (1 January 2022) with early application permitted. The amendments would be applied retrospectively.

Full details of the latest IASB meeting can be found directly on the IASB website.

 

Deloitte IASB meeting summary

May 2019 Meeting:

The discussions around IFRS 17 in the IASB’s May meeting centred on the following topics:

  • Updates from the April 2019 Transition Resource Group meeting;
  • Technical issues for the Board to consider before finalising the exposure draft; and
  • Consideration of the proposed commentary period to assign to the Exposure Draft.

The key output from this meeting is that the Board has set a comment period of 90 days for the Exposure Draft. It is expected that the Exposure Draft will be published at the end of June 2019.

For a link to the official IASB summary for this meeting, please click here, and navigate to the section on “Amendments to IFRS 17 Insurance Contracts”.

Deloitte IASB meeting summary

April 2019 Meeting:

The following agenda items were discussed in the April 2019 meeting:

  • Agenda Paper 2A – overview of the amendments to IFRS 17;
  • Agenda Paper 2B – due process steps, including permission for balloting;
  • Agenda Paper 2C – sweep issues; and
  • Agenda Papers 2D & 2E – annual improvements.

Agenda Papers 2A & 2B: The Board considered the proposed amendments previously accepted in prior meetings from November 2018 – March 2019 and confirmed that it wishes to publish an exposure draft setting out the proposed amendments.

Agenda Paper 2C: The Board tentatively decided that the effective date of the proposed amendments should be aligned with the proposed effective date of IFRS 17 of 1 January 2022.

Agenda Paper 2D: The Boarded tentatively decided to make a number of minor changes to the standard that would fall within the scope of Annual Improvements but which could also be addressed in the exposure draft.

For a link to the official IASB summary for this meeting, please click here, and navigate to the section on “Amendments to IFRS 17 Insurance Contracts”.

Deloitte IASB Meeting Summary

March 2019 Meeting:

This meeting saw further discussion around the 25 issues raised in Agenda Paper 2D from the October 2018 meeting. In particular, the following key areas were considered:

  • Agenda Paper 2A, 2B & 2C – level of aggregation;
  • Agenda Paper 2D – credit cards that provide insurance coverage;
  • Agenda Paper 2E – transition requirements (risk mitigation option);
  • Agenda Paper 2F – transition requirements (loans that transfer significant insurance risk);
  • Agenda Paper 2G – amendments to disclosure requirements resulting from the Board’s tentative decisions to date; and
  • Agenda Paper 2H – other implications for disclosure and transition requirements.

A significant number of proposed amendments were accepted by the Board in respect of the areas encompassed by Agenda Papers 2D, 2E, 2F and 2G, all of which are considered in detail in our Deloitte summary of this meeting. 

At its next meeting, the Board plans to consider the package of amendments tentatively decided by the Board as a whole. The Board will then decide whether the benefits of the amendments outweigh the costs and also whether they do not unduly disrupt implementation.

For a link to the official IASB summary for this meeting, please click here, and navigate to the section on “Amendments to IFRS 17 Insurance Contracts”.

Deloitte IASB Meeting Summary

February 2019 Meeting:

This meeting saw further discussion around the 25 issues raised in Agenda Paper 2D from the October 2018 meeting. In particular, the following 2 key areas were considered:

  • Agenda Paper 2A – loans that transfer significant insurance risk; and
  • Agenda Paper 2B, 2C & 2D – transition.

In respect of Agenda Paper 2A, one proposed amendment was accepted which centres around insurance contracts that provide insurance coverage only for the policyholder’s obligation created by the contract. The proposed amendment enables entities issuing such contracts to choose between applying either IFRS 17 or IFRS 9.

In respect of Agenda Papers 2B, 2C and 2D, 9 amendments were considered with one accepted by the Board. This amendment involves the transition requirements in IFRS 17 for liabilities that relate to the settlement of claims incurred before an insurance contract was acquired.

The Board intends to continue discussions around the remaining issues raised in Agenda Paper 2D (October 2018) in future meetings.

For a link to the official IASB summary for this meeting, please click here, and navigate to the section on “Amendments to IFRS 17 Insurance Contracts”.

 

Deloitte IASB Meeting Summary

January 2019 Meeting:

This meeting saw further discussion around the 25 issues raised in Agenda Paper 2D from the October 2018 meeting. In particular, the following 3 key areas were considered:

  • Agenda Paper 2A – insurance acquisition cash flows;
  • Agenda Paper 2B, 2C & 2D – reinsurance contracts held; and
  • Agenda Papers 2E – recognition of the contractual service margin in profit or loss.

A significant number of proposed amendments were accepted by the Board in respect of each area, all of which are considered in detail in our Deloitte summary of this meeting.

The Board intends to continue discussions around the remaining issues raised in Agenda Paper 2D in future meetings.

For a link to the official IASB summary for this meeting, please click here, and navigate to the section on “Amendments to IFRS 17 Insurance Contracts”.

Deloitte IASB Meeting Summary

December 2018 Meeting:

This meeting was the first held with the aim of accepting or declining proposed amendments to the IFRS 17 standard based on the list of 25 issues presented at the October meeting through Agenda Paper 2D.

Of the 12 topics discussed, one resulted in the Board tentatively deciding to amend the IFRS 17 requirements. This proposed amendment would see the presentation of insurance contract assets and liabilities in the statement of financial position determined using portfolios of insurance contracts rather than groups of insurance contracts, as currently required.

The Board intends to continue discussions around the remaining issues raised in Agenda Paper 2D in future meetings.

For a link to the official IASB summary for this meeting, please click here, and navigate to the section on “Insurance Contracts”.

Deloitte IASB Meeting Summary
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