The UK Endorsement Board (UKEB) has approved the adoption of the International Accounting Standards Board’s (IASB) IFRS 17 Insurance Contracts for use by UK companies, the first major standard UKEB has adopted since it received delegated powers from the UK’s Secretary of State for Business, Energy, and Industrial Strategy.
UKEB chair Pauline Wallace said: “The UKEB has carefully considered the statutory criteria for adopting new IFRS for use in the UK and is satisfied that IFRS 17 meets them all. Overall, the UKEB considers that the adoption of IFRS 17 will lead to substantial improvements in financial reporting for insurance contracts and that its application will be conducive to the long term public good in the UK.
“The adoption of IFRS 17 marks a major milestone in the work of the UKEB during its first year of operation. I am grateful for the extensive and constructive engagement from UK stakeholders during the consultation process, the detailed analysis carried out by the UKEB staff, and the thorough consideration given by board members to each of the statutory criteria.
“The UKEB looks forward to continuing to engage with UK stakeholders during the implementation and initial application of the Standard.”
IFRS 17 is effective for annual periods beginning on or after 1 January 2023, with early application permitted for entities that apply IFRS 9 Financial Instruments on or before the date of initial application of IFRS 17.