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 IASB’s decision to further defer the effective date to 1 January 2023 is a welcome one. On 25 June 2020, the International Accounting Standards Board (IASB) issued final amendments to IFRS 17 Insurance Contracts, following the conclusion of its deliberations on the comments received from stakeholders on its exposure draft published in June 2019. How will IFRS 17 impact your business? Entities will need to carefully consider the impact of these new amendments on all aspects of their current IFRS 17 implementation projects. The accounting standard for insurance contracts was originally scheduled to take effect in January 2021, but there have been widespread calls by trade bodies around the world to delay the standard for two years. An important upside of the delay to IFRS 17 is that a more The underlying measurement requirements of IFRS 17 remain unchanged and are based on groups - and therefore annual cohorts – of insurance contracts. Find out more and tell us what matters to you by visiting us at www.pwc.com. By using this site you agree to our use of cookies. Insurers are asking what this means for their implementation efforts and how best to respond. The comment letter notes: EFRAG welcomes the IASB’s decision to defer the effective date of IFRS 17. Posted : 2020-01-13 16:51. IFRS 17 – Exposure Draft • Consultation ends today, timetable indicates final version available mid 2020 6 One year delay Presentation at portfolio Benefit from the IFRS 17 delay. The current implementation date is set for January 2022. An entity shall make an accounting policy choice as to whether to change the treatment of accounting estimates made in previous interim financial statements, when applying IFRS 17 in subsequent interim or annual financial statements. However, insurers seeking to delay their implementation efforts will experience resourcing strains due to a shrinking talent pool. The extra year gives some insurers a chance to consider how to derive more business value from their extensive IFRS17 projects. IFRS 17 Insurance Contracts delayed until 2023. Take time to reap business benefits. Commenting on the International Accounting Standards Board’s (IASB) decision today to further defer the effective date of IFRS 17 Insurance Contracts to 1 January 2023, Alex Bertolotti, global IFRS 17 leader at PwC, said:  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. IFRS 17 is to become effective on January 1st 2022 replacing IFRS 4 Insurance Contracts. Link to Fitch Ratings' Report(s): IFRS 17: Delay Buys Time for Insurers Fitch Ratings-London-22 March 2019: The delay to the implementation of a new accounting standard, IFRS 17, will allow insurers and reinsurers to reduce operational risks, Fitch Ratings says in a new report. Neither are the underlying challenges of how to implement the standard and interpret its uncertainties. The new standard applies for reporting periods starting on 1 January 2021 or later. T he International Accounting Standards Board (IASB) is proposing a one-year delay to the implementation of IFRS 17 (and IFRS 9) and limited changes to its requirements. Subscribe to receive the latest BDO News and Insights, This site uses cookies to provide you with a more responsive and personalised service. To coincide with this new effective date, an amendment has also been made to the previous insurance standard, IFRS 4 Insurance Contracts. IFRS 17. A team of passionate and dedicated experts ready to provide the insight and knowledge that will help your... Our Retail and Wholesale team plays a key role by providing the High Street Sales Tracker and other leading reports. Please read our. IFRS 17 establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts within the scope of the standard. 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