The proposed deferral is subject to public consultation, which is expected within 2019 but it would be safe to suggest that insurers could start incorporating the above mentioned deferral in their implementation plans. New effective date for IFRS 17 IASB decides to make it 01 January 2023 On 17 March 2020, the International Accounting Standards Board (IASB) has decided on two (2) key actions regarding IFRS 17 Insurance Contracts: Defer the effective date of the Standard to annual reporting periods beginning on or after 1 January 2023; The Board published some amendments to IFRS 17, including a deferral of the effective date of IFRS 17 by two years so that entities are required to apply IFRS 17 for annual periods beginning on or after 1 January 2023. Accessibility   |   Privacy   |   Terms and Conditions   |   Trade mark guidelines   |   All legal information   |   Using our website. When the International Accounting Standards Board (the Board) issued amendments to IFRS 17, Insurance Contracts , on 25 June 2020 after a year of deliberations key among the amendments was a change to the effective date to 1 January 2023. Access the Exposure Draft Amendments to IFRS 17. At its November 2018 meeting, the IASB tentatively decided to propose that: the mandatory effective date of IFRS 17 be deferred by one year to 2022; and the fixed expiry date for the optional temporary exemption from applying IFRS 9 Financial Instruments, granted to insurers meeting certain criteria, also be deferred by one year to 2022. To supplement the consultation, the Board will organise stakeholder events around the world. Issue. IFRS 17 replaces IFRS 4 and sets out principles for the recognition, measurement, presentation and disclosure of insurance contracts within the scope of IFRS 17. Cash flows in The amendments to IFRS 17, including the additional year, will allow companies to revisit their implementation plans, reviewing them to make sure that there is a roadmap to deliver results in 2023, including gathering the data needed for transition, training the business on the changes they will see in 2023, and implementing a strategy for communicating those changes to stakeholders. The International Accounting Standards Board (IASB) has published amendments to IFRS 17 to help companies implement the standard and more easily explain their financial performance. Three main themes were observed in the feedback received: 1. IFRS in Focus — IASB seeks … In March 2020, the International Accounting Standards Board (IASB) agreed to postpone the effective date of IFRS 17 by one year to allow insurers extra time to implement the changes and to maximise the business value of their IFRS 17 implementation projects. Within insurance contracts, there may be differences in the measurement model depending on whether the contract contains direct participation features or meets the criteria required for the adoption of This simultaneous implementation comes with a plethora of challenges regarding operational processes, systems, reporting, KPIs and ultimately revenue and earnings patterns. The redeliberation discussions on the proposed amendments to IFRS 17 Insurance Contracts are now complete. Some insurers face the challenge of applying a complex standard to a myriad of different … The IASB also tentatively decided to allow insurers qualifying for deferral of IFRS 9 an additional year of deferral, meaning they could apply both standards for the first time in reporting periods beginning on or after 1 January 2022. A company can choose to apply IFRS 17 before that date but only if it also applies IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers. All rights reserved. The International Financial Reporting Standards Foundation is a not-for-profit corporation incorporated in the State of Delaware, United States of America, with the Delaware Division of Companies (file no: 3353113), and is registered as an overseas company in England and Wales (reg no: FC023235). Download. Effective date of IFRS 17 IFRS 17 Insurance Contracts was issued by the IASB on 18 May 2017 and is effective for periods beginning on or after 1 January 2023. — Decide an effective date for IFRS 17 implementation — Define the transition approach, which will affect all policies at the transition-al stage — Determine impact on the profit calculated as a result of the choice of discount rate and risk adjustment to be applied for transition — Gauge potential impact on product approval processes Reinsurance contracts Several Board members said they would agree to 20 Effective date and transition 175 20.1 Effective date 175 20.2 Transition to IFRS 17 176 20.3 Transition disclosures 194 20.4 Redesignation of financial assets 194 20.5 Comparative financial information 195 20.6 First-time adopters of IFRS 196 About this publication 197 Keeping in touch 198 Contents The Board also decided to propose an amendment to IFRS 4 to allow insurers qualifying … Please take a moment to review these changes. The drafting of the final text of the amendments to IFRS 17 will continue in line with the Board’s objective to issue the revised IFRS 17 in mid-2020. IASB tentatively decides to defer the IFRS 17 effective date 14 Nov 2018 At its meeting currently held in London, the IASB discussed the effective date of IFRS 17 'Insurance Contracts' and tentatively decided to defer it to annual periods beginning on or after 1 January 2022. 20 Effective date and transition 175 20.1 Effective date 175 20.2 Transition to IFRS 17 176 20.3 Transition disclosures 194 20.4 Redesignation of financial assets 194 20.5 Comparative financial information 195 20.6 First-time Download our latest Insurance Accounting Alert, below, for the full details on the decision to defer IFRS 17 – including the arguments of stakeholders for and against a delay to the effective date. Effective date of IFRS 12; Effective date of IFRS 13; Info. KPMG International provides no client services. Publication: Use of IFRS Standards around the world [PDF], How the IFRS Interpretations Committee helps support consistent application, Supporting materials for the IFRS for SMEs Standard, Amendments to IFRS 17 Insurance Contracts. Effective date of IFRS 17 Feedback from respondents • Almost all respondents supported the Board’s proposal to defer the effective date of IFRS 17 from its original effective date of 1 January 2021. IFRS 17 is an International Financial Reporting Standard that was issued by the International Accounting Standards Board in May 2017. Watch this space for our announcement to register for this webcast. IFRS 9 (by the effective date of IFRS 17), not as insurance contracts. Of course, an additional year is a bonus. Therefore, insurers can postpone the original IFRS 9 implementation date (01.01.2018) to the IFRS 17 effective date to avoid these massive mismatches (deferral approach) upfront. IN3 IFRS 17 supersedes IFRS 4 Insurance Contracts. IFRS 17 effective date 17 March 2020 IASB decides on new effective date for IFRS 17 of 1 January 2023 The International Accounting Standards Board (Board) has completed its discussions on the amendments to IFRS 17 Insurance Contracts that were proposed for public consultation in June 2019. The amendments to an exposure draft published last year include deferring the effective date of IFRS 17 by one year to 1 January 2023, allowing companies worldwide to adopt the standard at the same time. Early adoption is permitted, and some insurers who are far along in their implementation project may decide to consider this option. 14 Jul 2020. IFRS 17 effective date, assessing their readiness, determining the ongoing impact of the change in regime, planning IFRS 17 architectures and evaluating IFRS 17 vendors. Get the latest KPMG thought leadership directly to your individual personalized dashboard. With the effective date of IFRS 17 deferred until 2023, and the impact of COVID-19, should insurers pause their projects, or push on? Please watch this space for further updates and speak to your usual KPMG contact to find out more about the Board’s deliberations. Paragraphs in bold type state the main principles. All the paragraphs have equal authority. Bob. For other entities that do not qualify for the temporary exemption, or that choose the overlay approach instead, these amendments are effective for designated assets from the date at which IFRS 9 is applied for the first time. the mandatory effective date of IFRS 17 be deferred by one year to 2022; and the fixed expiry date for the optional temporary exemption from applying IFRS 9 Financial Instruments, granted to insurers meeting certain criteria, also be deferred by one year to 2022. Three main themes 1. At its March 2020 meeting, The International Accounting Standards Board (the Board) decided to defer the effective date of IFRS 17 for another year to 1 January 2023. The redeliberation discussions on the proposed amendments to IFRS 17 Insurance Contracts are now complete. IFRS 17 is effective for annual reporting periods beginning on or after 1 January 2023. This delay was recommended by the IASB at a meeting in 2018, the summary of which can be found here. Effective date . At its March 2020 meeting, The International Accounting Standards Board (the Board) decided to defer the effective date of IFRS 17 for another year to 1 January 2023. IASB decided to defer the effective date of IFRS 17 to annual reporting periods beginning on or after January 01, 2023. IFRS in Focus — IASB defers effective date for 'Classification of Liabilities as Current or Non-current' 22 Jul 2020 IFRS in Focus — IASB issues amendments to IFRS 17 'Insurance Contracts' effective date of IFRS 17 by two or three years to allow additional time for implementation. Session expired, please refresh your browser. KPMG International entities provide no services to clients. PwC Observations: Applying IFRS 17 accounting policies before the mandatory effective date It might be possible for an insurer to apply IFRS 17 accounting policies by changing the accounting policies under IFRS 4, ‘Insurance Contracts’, without applying IFRS 17 as a whole. Also, our insights on insurers’ progress with IFRS 17 and IFRS 9 implementation can be found on our In it to win it web page. Earlier application is permitted. Concerns expressed about any further deferral of the effective date No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The International Financial Reporting Standards Foundation is a not-for-profit corporation incorporated in the State of Delaware, United States of America, with the Delaware Division of Companies (file no: 3353113), and is registered as an overseas company in England and Wales (reg no: FC023235). Please remove any invalid characters ('', '+', '|'), links or URLs (e.g www.ifrs.org, http://www.ifrs.org) from the 'Your query' field and re-submit. Please note that your account has not been verified - unverified account will be deleted 48 hours after initial registration. Terms defined in Appendix A are in italics the first time IFRS Today: IFRS 17 – The new effective date | 5 Bob Thanks Mary. The redeliberation discussions on the proposed amendments to IFRS 17 Insurance Contracts are now complete. You can view which cookies are used by viewing the details in our privacy policy. Insurers need to make sure they have appropriate data, robust and tested systems in place, and a transition plan – these are just a few key areas that need to be ready by that effective date. Date of issue: Aug 2017 Date compiled to: 20 Aug 2020 . Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts* * For qualifying entities that choose to apply the temporary exemption from IFRS 9. Annual periods beginning on or after 1 January 2023 ; Early adoption is permitted . Read the transcript of the video (PDF 355 KB). 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