IASB issues amendments to IFRS 17
The International Accounting Standards Board (IASB) has issued amendments to IFRS17 Insurance Contracts with the aim of helping companies implement the Standard and making it easier for them to explain their financial performance.
The fundamental principles of IFRS 17 remain unaffected. The amendments, which respond to feedback from stakeholders, are designed to:
- reduce costs by simplifying some requirements in the Standard;
- make financial performance easier to explain; and
- ease transition by deferring the effective date of the Standard to 2023 and by providing additional relief to reduce the effort required for applying IFRS 17 for the first time.
IASB chair Hans Hoogervorst said: “We have listened to feedback and made changes to IFRS 17 that will help companies with the implementation of this much-needed Standard.”
The deferral of the effective date by two years, to annual reporting periods beginning on or after 1 January 2023, is intended to allow time for an orderly adoption of the amended IFRS 17 by jurisdictions around the world.
The IASB also issued an amendment to the previous insurance contracts Standard, IFRS 4, so that eligible insurers can still apply IFRS 9 Financial Instruments alongside IFRS 17.